ACR Releases Detailed Summary of FY2027 IPPS Final Rule

CMS released the federal fiscal year (FY) 2027 Inpatient Prospective Payment System final rule, updating Medicare payment policies for inpatient and long-term care hospitals effective Oct. 1. CMS finalized a 2.3% payment update for hospitals that meet quality reporting and electronic health record requirements.

The agency projects the rule will increase hospital payments by $2.1 billion in FY 2027. Additional payments for cases involving new medical technologies are expected to increase by about $779 million, driven largely by new technology add-on payment approvals.

CMS approved a new technology add-on payment for BriefCase-Triage: CARE Multi-Triage CT Body, an artificial intelligence tool that analyzes CT images and flags potentially urgent findings. The maximum add-on payment will be $137.53 per case in FY 2027. The agency also finalized a policy to eliminate the alternative pathway for new technology add-on payments beginning with FY 2028 applications. CMS said all technologies seeking add-on payments must demonstrate substantial clinical improvement and meet the same eligibility standards.

ACR^® developed a detailed summary of provisions relevant to radiology and hospital payment policy in the final rule.

For more information or if you have questions, contact Kimberly Greck, ACR Senior Economic Policy Analyst.