CMS Releases FY 2026 IPPS Final Rule: Key Promoting Interoperability Updates

On July 31, 2025, the Centers for Medicare & Medicaid Services (CMS) released the final rule for the FY 2026 Inpatient Prospective Payment System (IPPS). This rule—effective October 1, 2025—updates hospital payment rates, quality programs, and health IT requirements.

Of particular importance for hospitals are changes to the Medicare Promoting Interoperability (PI) Program, as CMS continues to push for better electronic data exchange and reduced administrative burden.

Key Medicare PI Program Updates

• EHR Reporting Period – Beginning in CY 2026 the Electronic Health Record reporting period will be defined as a minimum of one continuous 180-day period each calendar year
• Security Risk Analysis Measure – Must now attest “Yes” to both security risk analysis and security risk management
• SAFER Guides Measure – Annual self-assessment using all eight 2025 SAFER Guides is required beginning in CY 2026
• Bonus Measure (Optional) – Earn bonus points for exchanging data with a Public Health Agency via TEFCA (Trusted Exchange Framework and Common Agreement®) beginning in CY 2026

Additional Proposals & Requests for Feedback

CMS is also seeking input—via the CY 2026 Physician Fee Schedule (PFS) proposed rule—on:

• Suppressing scoring for the Electronic Case Reporting measure in CY 2025.
• Adopting a measure suppression policy for CY 2026
• Future changes to the PDMP Query measure (e.g., shifting from attestation-based to performance-based reporting)
• Transitioning to a performance-based reporting for the Medicare PI Program
• Strategies to improve quality and completeness of health information exchange

WHY IT MATTERS

The FY 2026 IPPS Final Rule reinforces CMS’s steady move toward value-based care and health IT modernization with an emphasis on real-time data exchange, API-driven access, and automated workflows. Hospitals should begin preparing now to ensure compliance with the new requirements heading into 2026 by:

• Reviewing health IT systems for compliance
• Assessing public health reporting processes
• Analyzing cybersecurity strategies

Read the full final rule on the Federal Register.

Need Help Navigating the Changes?

The Kentucky Regional Extension Center is here to help you interpret these updates and align your IT systems with the new requirements. Contact the experts at Kentucky REC with all your Promoting Interoperability questions. We’re here to help: 859-323-3090.