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.

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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.
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.
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 · Chapinc
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