December 11, 2025

Final Outpatient Hospital Payment Rule Released, Effective January 1
In November, the Centers for Medicare & Medicaid Services (CMS) issued updates to Medicare payment policies and rates for hospital outpatient services under the Hospital Outpatient Prospective Payment System (OPPS) for calendar year (CY) 2026.
In addition to finalizing the payment rates, this year’s rule includes an update to the methodology used to calculate the Overall Hospital Quality Star Rating to emphasize the Safety of Care measure group in hospitals’ star ratings. It finalizes a new payment for drug administration services provided in off-campus outpatient departments, eliminates the ‘inpatient only’ list, changes the hospital price transparency requirements, and changes to the Hospital Outpatient Quality Reporting (OQR) and Rural Emergency Hospital Quality Reporting (REHQR) programs.
CMS is not finalizing their proposal to increase the annual offset amount for non-drug items and services per the 340B Remedy Rule at this time. CMS anticipates finalizing a larger reduction (such as 2 percent or other reduction greater than 0.5 percent) beginning in CY 2027; CMS will instead implement the previously finalized 0.5 percent reduction for CY 2026.
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