On July 2, 2026, the Centers for Medicare and Medicaid Services (CMS) issued the proposed rule for the Hospital Outpatient Prospective Payment System (HOPPS) for calendar year (CY) 2027.

Payment rates

  • CMS proposed a 2.4% payment increase for OPPS hospitals and ambulatory surgery centers (ASCs) that meet applicable quality reporting requirements.
  • For OPPS hospitals, the proposed conversion factor (CF) is $102.004 for hospitals that meet quality reporting requirements and $100.015 for hospitals that do not.
  • For ASCs, the proposed CF is $57.766 for ASCs that meet quality reporting requirements and $56.638 for ASCs that do not.
  • CMS proposed to pay for 340B acquired drugs at the drug’s average sales price (ASP) -33.4%.
  • CMS proposed expanding site-neutral payments to imaging services without contrast performed in excepted off-campus provider-based departments (PBDs), aligning payment more closely with physician office rates. Rural Sole Community Hospitals would be exempt.
  • CMS proposed a cancer hospital payment-to-cost ratio (PCR) of 0.88 for the 11 designated cancer hospitals.

Ambulatory Payment Classifications (APCs)

  • CMS proposed reassigning LimFlow and liver histotripsy services to new APCs.
  • The DETOUR System would no longer receive separate pass-through payment after CY 2026, with device costs packaged into payment for the associated procedure.
  • CMS proposed assigning CPT 60660 (thyroid nodule ablation) a “P2” status indicator in the ASC setting, resulting in payment based on the Medicare Physician Fee Schedule rather than OPPS rates.
Inpatient Only (IPO) List
  • CMS proposed removing 637 additional procedures from the IPO list as part of its continued effort to phase out the list.
Diagnostic radiopharmaceuticals
  • CMS proposed maintaining the $655 per-day cost threshold for qualifying non-pass-through, separately payable diagnostic radiopharmaceuticals.