UHS · 10-Q · 2026Q2 · Full report
Medicare OPPS and IPO Changes
UNIVERSAL HEALTH SERVICES INC · 2026-08-07 · Importance 51 · Surprise 50 · In source text
CMS issued its 2027 OPPS proposed rule in July 2026 with a 3.2% hospital market-basket increase and a 0.8% productivity reduction; UHS estimates a net Medicare OPPS increase of 8.2% after statutory adjustments, including the 340B remedy and budget-neutrality provisions. CMS is continuing a three-year phase-out of the Inpatient Only list and proposed removing 638 services in the second phase for calendar year 2027. UHS expects the policy to shift certain procedures from inpatient to outpatient or freestanding settings, but the estimated impact of the 2027 IPO changes is not included in the 8.2% estimate.
Key facts
- The 2026 OPPS final rule had a hospital market basket increase of 3.3% and a productivity adjustment reduction of 0.7% for a net market basket increase of 2.6%, and UHS estimates its overall Medicare OPPS update for 2026 will aggregate to a net increase of 2.0% when other adjustments are considered. source
- CMS is continuing to phase out the Inpatient Only (IPO) list over a 3-year period and for the second year proposed to remove 638 services from multiple clinical families in the 2027 proposal; for CY 2026 CMS removed 285 mostly musculoskeletal procedures from the IPO list. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | committed | — | The 2026 OPPS final rule had a hospital market basket increase of 3.3% and a productivity adjustment reduction of 0.7% for a net market… |
| revenue | unclear | contingent | — | CMS is continuing to phase out the Inpatient Only (IPO) list over a 3-year period and for the second year proposed to remove 638 services… |