OPPS Proposal for 2026
Last week, the Centers for Medicare & Medicaid Services (CMS) released its proposal for The Hospital Outpatient Prospective Payment System (OPPS) for calendar year 2026. The proposed rule includes several proposals that would reduce Medicare funding for some services provided by hospital outpatient departments. The following paragraphs summarize the "highlights" of this proposal. Conversion Factor: There is a 2.4 percent payment rate increase for hospital outpatient departments and ASCs. The payment update includes a 3.2 percent increase in the hospital market basket percentage, along with a 0.8 percentage point productivity adjustment. This payment update is slightly smaller than the 2.9 percent increase for 2025. Site-Neutral Payment for Drug Administration Services: CMS is proposing to extend site-neutral policies to drug administration services in hospital provider-based departments (PBDs), previously referred to as off-campus provider-based departments. CMS proposes to…