Daily Briefing

Around the nation: CMS proposes HHA, ESRD payment updates


Last week, CMS proposed two payment updates for home health agencies (HHAs) and end-stage renal disease (ESRD) facilities for calendar year 2026, in today's bite-sized hospital and health industry news from California, Maryland, and Missouri.

  • California: Last month, Episource reported that a data breach exposed information from 5.4 million people, making it one of the largest healthcare data breaches this year. The company said it detected unusual activity on its computer systems in February and discovered that a cybercriminal had accessed and stolen some of its data. The data exposed in the breach included contact information, health insurance details, and health data. Other personal information, such as Social Security numbers and birth dates, may have also been compromised. According to Episource, not all customers were affected by the data breach, and the company is currently working with impacted healthcare organizations to notify any individuals whose data was exposed. (Olsen, Healthcare Dive, 6/20)
  • Maryland: Last week, CMS proposed two payment updates for HHAs and ESRD facilities for calendar year 2026. In its HHA payment update, CMS proposed reducing payments by 6.4% in 2026. This change would lead to an estimated $1.135 billion reduction in payments to HHAs in 2026 compared to 2025. In its ESRD payment update, CMS proposed increasing payments by around 1.9% in 2026, bringing the proposed ESRD base payment rate to $281.06. Overall, CMS expects to pay ESRD facilities $6.9 billion in 2026. Aside from the overall payment update, the agency also proposed a payment adjustment for certain nonlabor costs for ESRD facilities in Alaska, Hawaii, and the United States Pacific Territories. Compared to ESRD facilities in the contiguous United States, facilities in these regions have higher nonlabor costs. CMS would increase the nonlabor portion of the ESRD base payment rate for these facilities, capping the increase at 25%. (Gregerson, Becker's Hospital Review, 7/2; Lagasse, Healthcare Finance, 7/1)
  • Missouri: Ascension CEO Joseph Impicciche will retire at the end of the year after six years in the role. Impicciche originally joined Ascension in 2004 as legal counsel before becoming president and COO in 2019 and then later CEO. The health system's president Eduardo Conrado will succeed Impicciche as CEO, starting January 1. Conrado will also become a board member when he takes on the CEO title. Conrado joined Ascension in 2018 as its chief digital officer before becoming the chief strategy and innovation officer in 2019 and president in 2023. According to Conrado, the health system has been working on its succession plan for the last few years, and he has been working with Impicciche to set up the management team and develop the system's strategy. "I think what you're going to see is a deepened commitment to the path that we set," Conrado said. (Hudson, Modern Healthcare, 6/24)

Insights from the 2026 CMS Advance Notice

Join experts from Advisory Board and Optum to understand the 2026 CMS program changes, what the updates mean for your organization, and the impact these updates will have on the future of healthcare. Understanding what happened and what's next is the only way to respond quickly to the proposed changes.


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