ASC rates rise 2.3 percent for CY 2027; conversion factor $57.721 ($56.592 for ASCs failing quality reporting)
Published November 8, 2026 · Coverage November 1–7, 2026, Pacific · Lower priority
CMS extended use of the hospital market basket to update ambulatory surgical center (ASC) rates through CY 2027 and finalized a 2.3 percent update for ASCs meeting Ambulatory Surgical Center Quality Reporting (ASCQR) Program requirements. The CY 2027 ASC conversion factor is $57.721 for ASCs meeting quality reporting requirements and $56.592 for those that do not. CMS estimates total CY 2027 ASC payments of about $9.9 billion, up about $560 million, with specialty-group changes ranging from a 35 percent increase to a 5 percent decrease.
Background
For CYs 2019 through 2023, CMS adopted a policy to update the ASC payment system using the hospital market basket update, and it later extended that policy, most recently through CY 2026. The CY 2026 ASC conversion factor was $56.322. The ASCQR Program has affected ASC payment rates since CY 2014.
Who this affects
Ambulatory surgical centers, including hospital-owned or joint-venture ASCs.
Why it matters
Hospital-affiliated ASCs need the CY 2027 Addenda AA and BB rates. Inference: limited direct impact on hospitals beyond ASC joint ventures.
Required actions
- ASCs must meet ASCQR Program requirements to avoid the 2.0 percentage point reduction
Recommended action
- Load Addenda AA/BB rates for affiliated ASCs
Scope and timing
- Authority status
- Final
- Responsible owner
- ASC operations / Finance
- Publication date
- 2026-11-06
- Effective date
- 2027-01-01
Not established
Addenda AA/BB not retrieved.
Sources
Complete edition and supplemental material
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