Key Takeaways from CMS FY 2026 Hospice Final Rule | Maxwell TEC

HOPE Implementation 101 [Free Webinar]

On August 1, 2025, the Centers for Medicare & Medicaid Services (CMS) finalized the FY 2026 Hospice Wage Index and Payment Rate Update. The final rule includes a 2.6% payment increase, modest regulatory simplification, and continued emphasis on quality reporting.

While these updates are directionally positive, they fall short of meeting the rising cost of care delivery for most hospice providers.

Highlights from the FY 2026 Final Rule

• 2.6% Payment Rate Increase, resulting in approximately $750 million in additional reimbursement compared to FY 2025.
• Aggregate Cap raised to $35,361.44 per patient.
• Regulatory Relief: IDG physicians now authorized to admit patients, and F2F encounter attestation can be documented within the clinical note.
• Updated Wage Index methodology using 2023 IPPS data.

The Economic Reality

“The FY 2026 hike heads in the right direction,” said Jennifer Maxwell, CEO of Maxwell TEC. “It reflects CMS’s commitment to supporting hospice care—but cost‑of‑living pressures remain intense, and hospices may need broader flexibility and parity if they’re going to continue delivering quality care while staying solvent.”

How Maxwell TEC Helps Hospices Stay Ahead

The path forward isn’t just about reimbursement—operational transformation is critical. To compete and thrive, hospices must centralize, automate, and proactively manage every facet of the care experience.

That’s where nanaCONNECT comes in.

Modernize Hospice Care with nanaCONNECT

nanaCONNECT is Maxwell TEC’s proprietary patient communication platform that connects patients, families, and care teams in real time—while automating outreach, follow-up, and compliance workflows. It includes four powerful modules, optimized for care at home:

• NOTIFY: Keep patients in the loop with real-time text updates about their upcoming clinician visits—ensuring better communication. 

• ENGAGE: Offers daily text-based check-ins to patients, while providers receive real-time updates on patients’ wellbeing—allowing for more proactive care.  

• REACH: Maintain connection with discharged patients, promoting ongoing engagement and monitoring to identify potential signs of readmission 

• BEREAVE: Replace traditional paper-based hospice bereavement communications with tailored, supportive text messages—personalized utilizing AI risk-scoring, so the right message is sent at the right time 

Operational Assessment & Optimization Services

Beyond technology, Maxwell TEC offers strategic consulting and clinical operations assessments tailored for hospice agencies of all sizes. Our team helps clients:

• Analyze and redesign workflows to improve quality and efficiency
• Align staffing and scheduling with real-world demand
• Streamline IDT documentation and compliance readiness
• Identify missed revenue or cost-saving opportunities
• Implement technology (including EMRs and nanaCONNECT) with minimal disruption

Future-Proof Your Operations with Maxwell TEC

CMS’s FY 2026 rule gives hospices a small financial lift, but keeping up with cost-of-living trends will require deeper innovation. That means moving beyond spreadsheets, manual outreach, and siloed systems.

The Maxwell TEC team is always ready to help hospice providers future-proof their care delivery, compliance, and family engagement. Let's modernize your hospice program together. Visit www.maxwelltec.com or contact us at sales@maxwelltec.com to get started.