August 4, 2025 Washington, DC —  A statement from Katie Smith Sloan, president and CEO, LeadingAge, the association of nonprofit providers of aging services, including hospices, on the Centers for Medicare and Medicaid Services (CMS) release of the FY2026 Hospice Payment Rate Update Final Rule:

While CMS’s finalized hospice payment update of 2.6% for FY 2026 represents a slight improvement over the proposed rule, it remains far from adequate. This increase fails to keep pace with inflation and the rising costs of delivering care, particularly for nonprofit, mission-driven providers already strained by workforce shortages, increasing wages, and inflationary pressures. LeadingAge has consistently raised concerns that under-indexed payment updates, like this one, jeopardize provider sustainability and restrict access to high-quality end-of-life care.

On other aspects of the final rule, we are pleased that CMS finalized greater flexibility in the face-to-face encounter policy, allowing documentation through a signed and dated clinical note. This clarification will reduce unnecessary administrative burden on providers and better support clinicians in meeting patients’ needs without compromising care quality.

However, we are disappointed that CMS did not delay implementation of the Hospice Outcomes and Patient Evaluation (HOPE) tool, despite the concerns shared by LeadingAge and other national associations. The sector has consistently highlighted the lack of critical technical guidance necessary for successful implementation. Moving forward with the current timeline could disrupt provider operations and put providers at risk of payment reductions for compliance despite their best efforts to implement this new requirement.

We remain committed to working with CMS to ensure hospice policy decisions reflect the realities faced by our provider members and support sustainable, high-quality care for individuals and families at the end of life.”