Washington, D.C. (July 31, 2026) – Charlene MacDonald, President and CEO of the Federation of American Hospitals (FAH), released the following statement on the FY 2027 Medicare Inpatient Prospective Payment System (IPPS) final rule:

“Today’s Medicare payment update reflects what hospitals experience firsthand: fewer affordable coverage options are contributing to more uninsured patients seeking care. As uncompensated care grows, adequate Medicare payments become even more critical to preserving access to care.

“At the same time, the increasing adoption of mandatory payment models reduces flexibility for hospitals and physicians. Lasting improvements in care delivery come through collaboration and innovation, not one-size-fits-all mandates.

“As hospitals care for a growing number of patients who either can’t afford coverage or use the coverage they have, every policy should strengthen – not strain – patients’ access to care.”