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MGCRB Reclassification Withdrawal: What Hospitals Need to Know for FY 2027

For hospitals that would like to withdraw an approved Geographic Reclassification, the publishing of the FY 2027 proposed rule starts the 45-day window for withdrawing approved Medicare Geographic Classification Review Board (MGCRB) reclassifications.  The Centers for Medicare & Medicaid Services (CMS) published the FY 2027 Hospital Inpatient PPS proposed rule on April 14, 2026. 

Rule Reference

Rule 11.3 of the MGCRB rules states that the request for withdrawal must be received by the MGCRB within 45 days from the date of filing for public inspection of the proposed rule.  The rules further state that an approved withdrawal request is effective for the full three-year reclassification period.

Key Details

  • Action: Submit a withdrawal request to the MGCRB if you intend to withdraw an approved reclassification.
  • Timing: The request must be received within 45 days of the proposed rule’s filing for public inspection.
  • Impact: An approved withdrawal applies for the full three-year reclassification period.

Next Steps

Should your facility want to withdraw an existing approved MGCRB application, the window to do so is open. If your hospital or health system would benefit from support in navigating MGCRB applications, Blue & Co.’s wage index team is ready to assist. Our team brings extensive experience across every phase of the Wage Index process. Contact one of our experts to discuss your questions or needs.

Austin Fisher, CPA, Senior Manager

Lexi Rommelman, CHFP, Senior Manager

Jordan Rose, CPA, CHFP, CHCRS, Senior Manager

 

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