Yesterday, the Centers for Medicare & Medicaid Services released several final rules and updates impacting payment and quality expectations for FY 2026. Below is a summary of each announcement and its likely effect on providers across care settings. 

Quarterly Listing of CMS Program Issuances (April–June 2025) 

This listing compiles all CMS transmittals, memoranda, manual updates, and other instructions issued in the second quarter of 2025. While not tied to a specific payment update, it sets the compliance and operational agenda that contractors and providers need to follow going into the next fiscal year. 

Impact: Compliance leaders and revenue cycle teams should review the quarterly listing closely to ensure internal processes reflect the latest guidance on claims processing, provider enrollment, coverage determinations, and survey protocols. 

Announcement available at: https://www.federalregister.gov/documents/2025/08/05/2025-14822/medicare-and-medicaid-programs-quarterly-listing-of-program-issuances-april-through-june-2025 

FY 2026 Hospice Wage Index and Payment Rate Update + Hospice Quality Reporting Program (HQRP) Changes 

CMS finalized a payment rate increase for hospices along with routine wage index updates. Revisions to HQRP continue the move toward outcome-oriented quality measurement, including preparation for the upcoming HOPE assessment tool. 

Impact: Hospices should expect modest payment growth coupled with expanded quality reporting expectations that will require stronger documentation and care coordination practices. 

Announcement available at: https://www.federalregister.gov/documents/2025/08/05/2025-14782/medicare-program-fy-2026-hospice-wage-index-and-payment-rate-update-and-hospice-quality-reporting 

FY 2026 Inpatient Psychiatric Facility (IPF) PPS Final Rule 

This rule updates the IPF per diem base rate, wage index, and labor share for FY 2026. CMS also modifies several measures in the IPF Quality Reporting Program to put greater emphasis on behavioral health outcomes and performance improvement. 

Impact: Psychiatric hospitals and units will see a net payment increase, but must be ready to support enhanced quality tracking and accurate measure reporting to avoid penalties. 

Announcement available at: https://www.federalregister.gov/documents/2025/08/05/2025-14781/medicare-program-fy-2026-inpatient-psychiatric-facilities-prospective-payment-system-rate-update 

FY 2026 Inpatient Rehabilitation Facility (IRF) PPS Final Rule 

IRFs will receive a payment increase in FY 2026 tied to market basket and wage index changes. CMS also continues to strengthen the IRF Quality Reporting Program by refining functional outcome measures and signaling future alignment with post-acute value initiatives. 

Impact: IRFs should prepare for higher reimbursement alongside increased accountability for quality outcomes and performance on patient assessment data. 

Announcement available at: https://www.federalregister.gov/documents/2025/08/05/2025-14780/medicare-program-inpatient-rehabilitation-facility-prospective-payment-system-for-federal-fiscal  

Bottom Line for Providers 

CMS continues its trend of linking payment updates to quality, transparency, and data integrity. While most settings will enjoy FY 2026 reimbursement increases, each sector should be bracing for greater reporting rigor and operational alignment with value-based objectives. 

To stay ahead, providers should prioritize internal assessments of their current documentation, coding, and quality reporting workflows to identify any vulnerabilities, considering the new requirements. Investment in education, technology, and cross-functional collaboration will be essential to safeguard compliance, protect revenue, and successfully navigate the evolving value-based landscape.