CMS Finalizes 2.3% FY2027 Pay Bumps for Rehab, Hospices

CMS finalized its fiscal 2027 payment rules for inpatient rehabilitation facilities and hospices on July 30, according to Becker's Hospital Review. Both settings will receive a 2.3% payment increase in the coming fiscal year.

For inpatient rehabilitation facilities, the 2.3% bump lands slightly below the 2.4% increase CMS proposed in April. The update reflects a 3.2% market basket increase, offset by productivity and other adjustments. Hospices will see the same 2.3% headline increase, the standard update process CMS applies annually to keep base payment rates aligned with inflation and cost trends.

The two rules follow a steady cadence of CMS final payment decisions across care settings this summer. For operators, the practical takeaway is modest: the increases are thin relative to persistent labor and supply cost pressures, and the IRF cut from the proposed rate signals CMS is holding a tight line. Finance teams should update their fiscal 2027 revenue models accordingly and watch for the full rule text detailing quality reporting changes.