The number of hospitals facing readmission penalties of at least 1% is set to increase in fiscal year 2026, according to preliminary data from CMS released Sept. 19.  Beginning Oct. 1, 240 hospitals (8.1%) will be subject to penalties of 1% or more under the Hospital Readmissions Reduction Program. That is up from 208 hospitals (7%) in fiscal 2025.

The share of hospitals receiving no penalty will remain largely unchanged, rising slightly to 641 hospitals (21.8%) from 638 (21.4%) in 2025. The majority of hospitals — 70.1% in fiscal 2026 compared with 71.6% in 2025 — will face penalties below 1%. CMS also reported the average penalty by dual-eligible patient share. Hospitals with the highest proportion of Medicare-Medicaid dual-eligible patients will see an average penalty of 0.33% in fisca

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