Washington, D.C. (April 10, 2026) – Charlene MacDonald, President and CEO of the Federation of American Hospitals (FAH), released the following statement on the FY 2027 IPPS/LTCH Proposed Rule:

“Patients depend on hospitals being there when they need care, and that requires payment policies that keep pace with the real cost of delivering care. CMS’s proposed update is a step in the right direction, but it does not negate the compounding effects of rising inflation, record levels of uncompensated care and a growing uninsured population. The continued use of mandatory models further destabilizes the system by interfering with clinical decision-making, failing to reflect how care is delivered across providers, and limiting providers’ ability to determine the best course of care for each patient. We will continue to work with CMS to ensure payment policies support timely access to high-quality, around-the-clock hospital care in communities across the country.”