CMS Releases FY2026 Hospice Final Rule

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Policy Alert: CMS released the FY2026 Hospice Wage Index and Payment Rate Update final rule on Friday August 1.

The agency confirmed a 2.6% payment rate increase and several policy changes, including updates to quality reporting penalties, wage index methodology, and the upcoming HOPE Tool launch.

Statement from Tom Koutsoumpas, CEO:

“NPHI is pleased to see CMS confirm a payment rate increase for hospices across the US. In the current environment, even a modest increase provides some relief and stability for providers. At the same time, nonprofit, mission-driven, community-based hospice organizations continue to face real financial and workforce pressures as they work to deliver high-quality, person-centered care.”

Tom continued: “We appreciate CMS’s ongoing engagement with the provider community and remain committed to collaborative dialogue to ensure future policy updates support the long-term sustainability of nonprofit hospice providers and the patients and families they serve. As part of that work, NPHI continues to advocate for increased recognition and support for the vital role of nonprofit, mission-driven, community-based hospice organizations.”

About NPHI
The National Partnership for Healthcare and Hospice Innovation (NPHI) is the leading organization representing nonprofit, community-based hospice and advanced illness care providers. Committed to excellence, NPHI’s members ensure patients and families receive compassionate, high-quality care that respects their goals, values, and dignity. Together, we are transforming healthcare by helping advance innovative, person-centered models and strengthening collaboration with leaders, policymakers, and healthcare partners across the nation. Learn more at nphihealth.org.