CMS proposes OPPS rule with 340B cuts and expanded site-neutral payment policies for 2027

CMS released its 2027 Hospital Outpatient Prospective Payment System proposed rule, which includes significant changes for practices with outpatient hospital departments. The rule renews a push to slash 340B drug reimbursement rates and broadens site-neutral payment policies, where services provided in hospital outpatient departments would be paid at physician office rates. CMS frames this as part of a $5.7B Medicare savings plan. For independent practices operating in or alongside hospitals, this signals continued pressure on hospital-owned outpatient margins and could shift service volumes. The public comment period is open, with a final rule expected in early November. Monitor the Federal Register for the official proposal and prepare to assess the operational impact on your affiliated or competing outpatient facilities.