• Maryland: CMS has finalized its IPPS and LTCH Prospective Payment system rule for FY 2027. Under the rule, both hospitals and LTCHs will receive a 2.3% payment increase in 2027, which will increase overall hospital payments by roughly $2.1 billion — slightly less than originally proposed. The agency also finalized a new mandatory joint replacement model called the Comprehensive Care for Joint Replacement Expanded (CJR-X) model. The CJR-X is the first mandatory, nationwide test of episode-based payment and will begin Jan. 1, 2028. The previous version of the model, which ran from April 2016 to December 2024, helped Medicare save over $100 million while keeping quality stable. "Knee, hip, and ankle replacements are important for helping seniors preserve their mobility and overall well-being," said CMS Administrator Mehmet Oz. "Expanding the joint replacement pilot program to support more of our seniors will help match financial incentives in Medicare with improved health outcomes, safeguard taxpayer resources and ensure patients experience a positive, comprehensive care journey throughout the surgical process." (Condon, Becker's Hospital Review, 7/31)
• Maryland: FDA has approved Kenvue's Tylenol with Naproxen as the first over-the-counter single formulation of acetaminophen and naproxen sodium. The drug contains 650 milligrams of acetaminophen and 220 milligrams of naproxen sodium. FDA granted Kenvue three years of exclusivity for the combination pill. According to Kenvue, the approval was based on eight clinical trials that found that the combination pill provided greater pain relief than either acetaminophen or naproxen sodium alone. The company also cited a March 2026 survey of over 6,000 people that found that 75% of people suffering from persistent pain were dissatisfied with their current pain relief options. (Jeffries, Becker's Hospital Review, 7/27)
• Tennessee: According to a new report from Gibbins Advisors, the number of healthcare bankruptcy filings has increased during the first half of 2026 compared to last year, but the sector overall appears to be "stabilizing near its long-term trend." Overall, Gibbins reported 26 Chapter 11 bankruptcy filings among midsized-and-above healthcare companies, or those with over $10 million in liabilities, between January and June. This is similar to the number of bankruptcy filings during the second half of 2025 and "sits around" the quarterly average Gibbins has recorded over the last seven years. Currently, 2026 is projected to end with a 16% increase in bankruptcy filings compared to 2025. "The relative stability in healthcare bankruptcy filings is surprising considering the on-the-ground pressures we see operators facing every day," said Ronald Winters, a principal at Gibbins. "There is a lot bubbling under the surface that will ultimately need to be resolved in some form of restructuring, though not all will be resolved in court." (Muoio, Fierce Healthcare, 7/20)

Health system finances are at risk of disruption in today’s policy environment. Our scenario planning advice details a four-step approach to help leaders anticipate and adapt to regulatory changes.