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CMS Locks in 2.3% Inpatient Hospital Base Pay Increase, Nudges Back CJR-X Model Start Date

on August 03, 2026

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CMS finalized a 2.3% inpatient hospital base pay increase for FY 2027, effective October 1, 2026, reflecting a 3.2% market basket increase minus a 0.9% productivity adjustment and adding roughly $2.1 billion to hospital payments.

Long-term care hospitals also receive a 2.3% update, increasing LTCH payments by about $54 million.

The CJR-X (Comprehensive Care for Joint Replacement Expansion) model has been revived and expanded to cover hip, knee, and ankle replacements and hip fracture patients, with a start date nudged to January 1, 2028, shifting to regional episode target prices and broadening from inpatient to include hospital outpatient settings.

Sources:

CMS finalizes 2.3% inpatient pay bump, CJR Model expansion | TechTarget

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