On April 14, the Centers for Medicare and Medicaid Services (CMS) released the proposed rule for the Fiscal Year (FY) 2027 Inpatient Prospective Payment System (IPPS). Consistent with F26 rulemaking, the proposed rule includes the proposed rescission of several previously finalized provisions that were intended to drive equitable impact.
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What's Inside
Non-Complication or Comorbidity Designation for Housing Instability Z-Codes: CMS previously upgraded the severity levels for several Z-Codes describing inadequate housing or housing instability from NonCC to CC. The agency is now proposing to change the severity level designation for 10 related Z-Codes from CC to NonCC starting FY27.
Mandatory Malnutrition Quality Measure Reporting: CMS is proposing mandatory reporting of the Malnutrition Care Score electronic clinical quality measure (eCQM) beginning with the Calendar Year (CY2028) reporting period/FY 2030 payment determination.
Request for Information (RFI) Expanding Birthing-Friendly Hospital Designation Criteria: CMS is seeking input on the inclusion of the Cesarean Birth eCQM and Severe Obstetric Complications eCQM, as well as a modified scoring methodology for the expanded designation.
Proposal to Apply DEI Requirements Ban to Medical Residency Programs: This would prohibit approved medical residency programs from using demographic or intentional proxies as characteristics for employment, program participation, or other benefits.