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# CMS finalizes FY2027 hospice pay rule, locks in SSVI fraud-scoring system
- URL: https://members.americanhealthintel.com/2026-08-07-serviceline/
- Published: 2026-08-07T21:00:44.000Z
- Updated: 2026-08-07T21:00:44.000Z
- Description: Plus: For-profit hospices run 167% higher non-hospice spending per day than nonprofits. The day's rules, money, and enforcement, sourced and tiered below.
- Author: American Health Intel

Plus: For-profit hospices run 167% higher non-hospice spending per day than nonprofits. The day's rules, money, and enforcement, sourced and tiered below.

| American Health Intel Rules · Money · Medicine · Decoded daily The Service Line Friday, August 7, 2026 CMS finalizes FY2027 hospice pay rule, locks in SSVI fraud-scoring system Plus: For-profit hospices run 167% higher non-hospice spending per day than nonprofits. The day's rules, money, and enforcement, sourced and tiered below. ![](https://americanhealthintel.com/email/pulse-divider.png) Rule Confidence: High The Medicare agency CMS finalized next year's hospice pay rule this week, raising rates 2.3%, and locked in a new fraud-scoring system for nearly every US hospice exactly as it had proposed. The Service and Spending Variation Index scores each hospice 0 to 16 on nine claims-based measures, including length of stay, live discharges, and non-hospice Medicare spending. Effective October 1, 2026. Why it matters CMS just gave itself a systematic way to flag hospices for fraud risk, using the same rule that sets next year's payment rates. Watch how fast these scores turn into audits. Sources: [CMS](https://www.cms.gov/newsroom/fact-sheets/fiscal-year-2027-hospice-wage-index-payment-rate-update-hospice-quality-reporting-program?ref=members.americanhealthintel.com) · [Federal Register](https://www.federalregister.gov/documents/2026/08/03/2026-15686/medicare-program-fy-2027-hospice-wage-index-and-payment-rate-update-and-hospice-quality-reporting?ref=members.americanhealthintel.com) · [Hospicenews](https://hospicenews.com/2026/08/03/hospice-groups-disappointed-by-2027-final-rule/?ref=members.americanhealthintel.com) Report Confidence: High The number CMS used to justify its new hospice fraud score: for-profit hospices, the end-of-life care agencies Medicare pays per day, spent nearly 167% more per day on non-hospice Medicare services than nonprofit hospices did. Total non-hospice spending on hospice patients hit $2.8 billion in fiscal year 2024, up sharply from two years earlier. CMS is now scoring every hospice against this pattern. Why it matters This is the exact data gap CMS used to build its new hospice fraud score, so it is now a benchmark every hospice, not just the ones under investigation, will be measured against. Sources: [CMS](https://www.cms.gov/newsroom/fact-sheets/fiscal-year-2027-hospice-wage-index-payment-rate-update-hospice-quality-reporting-program?ref=members.americanhealthintel.com) · [Chapinc](https://chapinc.org/blog-news/cms-posts-fy-2027-hospice-wage-index-final-rule/?ref=members.americanhealthintel.com) Also today DOJ charges 19 in $4M Philadelphia home care fraud scheme, expands strike force [Read](https://americanhealthintel.com/editions/2026-08-07-serviceline/?utm%5Fsource=newsletter&utm%5Fmedium=email&utm%5Fcampaign=edition#philadelphia-homecare-fraud-doj-strike-force-expansion) Hospice fraud enforcement model expands beyond CA/NV/AZ/TX into Pennsylvania [Read](https://americanhealthintel.com/editions/2026-08-07-serviceline/?utm%5Fsource=newsletter&utm%5Fmedium=email&utm%5Fcampaign=edition#hospice-enforcement-geographic-expansion-pa) Addus HomeCare's Indiana deal beats expectations, more M&A coming [Read](https://americanhealthintel.com/editions/2026-08-07-serviceline/?utm%5Fsource=newsletter&utm%5Fmedium=email&utm%5Fcampaign=edition#addus-homecourt-indiana-ma-appetite) New hospice patient disclosure addendum and telehealth F2F extension, effective Oct 1 [Read](https://americanhealthintel.com/editions/2026-08-07-serviceline/?utm%5Fsource=newsletter&utm%5Fmedium=email&utm%5Fcampaign=edition#hospice-election-addendum-telehealth-f2f-extension) Haitian TPS expiration threatens home care and hospice caregiver workforce [Read](https://americanhealthintel.com/editions/2026-08-07-serviceline/?utm%5Fsource=newsletter&utm%5Fmedium=email&utm%5Fcampaign=edition#haitian-tps-home-care-workforce-risk) 442Records$31.7BEnforcement20Deadlines127Rules [Read this issue + the trackers](https://americanhealthintel.com/editions/2026-08-07-serviceline/?utm%5Fsource=newsletter&utm%5Fmedium=email&utm%5Fcampaign=edition) Pick your field on the site and every story tells you what it means for you. Reply to this email and tell us what you want covered. We read everything. We show our work. We score our own calls. [Track record](https://americanhealthintel.com/ledger/?utm%5Fsource=newsletter&utm%5Fmedium=email&utm%5Fcampaign=edition) · [Calendar](https://americanhealthintel.com/calendar/?utm%5Fsource=newsletter&utm%5Fmedium=email&utm%5Fcampaign=edition) · [Enforcement](https://americanhealthintel.com/enforcement/?utm%5Fsource=newsletter&utm%5Fmedium=email&utm%5Fcampaign=edition) · [X](https://x.com/amhealthintel?ref=members.americanhealthintel.com) · [LinkedIn](https://www.linkedin.com/company/american-health-intel?ref=members.americanhealthintel.com) News and analysis, not legal, medical, coding, or investment advice.You subscribed at americanhealthintel.com · [Unsubscribe](%%{unsubscribe%5Furl}%%) |
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