Statement on the CY 2027 Medicare Outpatient Prospective Payment System Proposed Rule

Premier is disappointed by the Centers for Medicare & Medicaid Services’ (CMS) proposed rule for the calendar year (CY) 2027 Medicare outpatient prospective payment system, which delivers multiple blows to hospitals already operating under immense financial strain.

The 2.4 percent update proposed in this rule again falls short of what is needed to reflect the true costs of providing care. Furthermore, other proposals, such as a further expansion of Medicare site‑neutral payment cuts, an acceleration of a 340B recoupment policy and a proposal to dramatically reduce 340B payments, will effectively move the payment update into negative territory for many hospitals. Premier cautions against CMS pursuing these policies which fail to recognize the rising costs and operation realities hospitals face.

While Premier remains deeply concerned about the cumulative financial impact of these proposals, we are pleased to see CMS seeking further public input on options to foster a more resilient supply chain for American-made PPE and essential medicines, including recognition of the additional costs hospitals incur when procuring these domestically manufactured products. Premier has long advocated for policies that strengthen domestic manufacturing and supply chain resiliency and appreciates CMS' continued focus on these issues. We look forward to working with the agency on practical, sustainable approaches that support both hospitals and a more secure healthcare supply chain.