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Policy Brief | Health-Impact-Alliance

HIA Policy Briefing: FY2026 Hospital Inpatient Prospective Payment System (IPPS) Final Rule

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On August 4, CMS released the final rule for Fiscal Year (FY) 2026 Medicare Hospital Inpatient Prospective Payment System (IPPS). The agency eliminated several health equity requirements, including Social Drivers of Health (SDOH) screening measures and a health equity payment adjustment in the Hospital Value-Based Purchasing Program.

Click download pdf to get the full details.

What's Inside

  • Inpatient Quality Reporting (IQR) Measures: Details on CMS's removal of 3 health equity-related quality measures dedicated to hospitals' health equity commitment and SDOH screening processes.

  • Hospital Value-Based Purchasing (HVBP) Health Equity Adjustment: Details on CMS's removal of the Health Equity Adjustment (HEA) from HVBP scoring methodology.

  • Transforming Episode Accountability Model (TEAM) Voluntary Health Equity Reporting: CMS is removing voluntary health equity reporting opportunities and have clarified that they will no longer be expecting demographic data collection for specific variables, including gender identity and sexual orientation.

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