CMS announces proposed rules for hospital payments in 2026

The Centers for Medicare and Medicaid Services issued the 2026 hospital outpatient prospective payment system and ambulatory surgical center payment system proposed rule. This proposal introduces “a series of patient-focused reforms that would modernize payments, expand access to care, and enhance hospital accountability,” the agency said in a statement. CMS says the proposed changes are designed to: Reduce out-of-pocket costs for Medicare beneficiaries; Expand choices in where patients can receive care; Increase hospital accountability and transparency; and Safeguard the Medicare Trust Fund from waste and abuse. “CMS seeks to equalize payments for certain services delivered in hospitals and off-campus facilities, helping ensure beneficiaries aren’t penalized with additional copays simply based on where they receive care. The rule also proposes phasing out the inpatient-only list, which would give physicians greater flexibility to determine the most clinically appropriate setting for care and allow more patients to choose outpatient surgical options,” it added. Publicly traded companies in the hospitals space include Community Health (CYH), HCA Healthcare (HCA), Tenet Healthcare (THC) and Universal Health (UHS).