Statement on CMS Proposed FY 2026 Hospital Inpatient Payment Rule

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Premier remains deeply concerned that Medicare payments to hospitals are insufficient and threaten the long-term strength and resilience of American healthcare. Year after year reimbursement rates ignore the basic tenets of Economics 101 - forcing hospitals to shoulder skyrocketing costs and jeopardizing their ability to keep doors open for the patients who rely on them.

Hospitals must be able to stand strong, not just survive. If we continue to starve the healthcare system of necessary resources, we will only see more hospital closures, growing clinician burnout and extended wait times for patient care. This is not a sustainable path forward. Hospitals must have the financial stability to invest in their workforce, advance innovation and promote long-term health and well-being.

Premier urges the Centers for Medicare & Medicaid Services (CMS) to ensure that Medicare payments adequately support the needs of both providers and the patients they serve, while continuing to double-down on testing value-based care models such as TEAM. Our healthcare system - and the health of millions of Americans - depends on it.