CMS Lifts Outpatient Pay 2.3%, Cuts 340B Rates for 2027

CMS finalized its 2027 hospital outpatient and ambulatory surgical center payment rule on Nov. 4, setting the financial terms hospitals will operate under next year. According to Becker's Hospital Review, outpatient payment rates will rise 2.3% for hospitals that meet quality reporting requirements. That figure reflects a 3.2% market basket increase offset by a productivity adjustment.

The headline number masks several cuts. CMS is reducing payment for 340B-acquired drugs, a move that squeezes safety-net hospitals that rely on the discount program to stretch margins. The agency is also expanding site-neutral payments to imaging services, meaning hospital outpatient departments will be paid the same as physician offices for those procedures rather than commanding higher facility rates. CMS continues to phase out the inpatient-only list, pushing more procedures into the outpatient and ASC settings.

In practice, the pay bump will not fully cover inflation for many systems, and the 340B and site-neutral changes shift revenue away from hospitals toward lower-cost settings.