CMS Proposes Mandatory Nationwide CJR-X Joint Replacement Model
CMS released its FY 2027 IPPS proposed rule on April 10, 2026, featuring a landmark proposal to expand the Comprehensive Care for Joint Replacement model — now called CJR-X — to all acute care hospitals nationwide, effective October 1, 2027. Under CJR-X, hospitals would be held accountable for all Medicare Part A and Part B spending during a lower extremity joint replacement (LEJR) episode, encompassing the procedure through 90 days post-discharge. The rule also proposes a net 2.4% Medicare inpatient payment rate increase for FY 2027. CJR-X would be mandatory for every acute care hospital performing LEJR, except those already in the TEAM model and Maryland hospitals.
CJR-X would impose mandatory bundled payment accountability on all Michigan acute care hospitals performing joint replacements not already enrolled in TEAM — directly affecting Synergy Health's hospital-based orthopedic programs and their post-acute referral economics. Practices must begin modeling episode cost exposure immediately and must submit comments by June 9, 2026.
- Assess your hospital partner's current total LEJR episode spending versus anticipated CJR-X target prices, focusing on post-acute utilization in the 90-day window
- Engage a healthcare policy counsel to draft and submit formal comments to CMS before the June 9, 2026 deadline — highlighting Michigan-specific market conditions
- Convene a cross-functional CJR-X planning committee (finance, clinical, post-acute partners) to map the full care pathway and identify cost reduction opportunities before October 2027