Medicare PFS 2026 Final Rule Brings Payment Increase for Physical Therapists

The Centers for Medicare & Medicaid Services (CMS) has released the final Physician Fee Schedule (PFS) rule for 2026, introducing key updates that impact healthcare providers across the U.S. After several years of remibursement reductions, the new rule brings a positive shift for the physical therapy community, with an average payment increase of approximately 1.75% for most physical therapists.

This update reflects ongoing advocacy efforts by professional organizations and signals renewed recognition of the critical role physical therapists play in improving patient outcomes and reducing overall healthcare costs. Among the most important highlights of the 2026 Medicare PFS Final Rule are

• Adjustments to conversion factors, including separate rates tied to participation in advanced payment models.
• Updates to Relative Value Units (RVUs) to better align payments with clinical complexity and value-based care.
• Continued support for telehealth and hybrid care models, including services such as Remote Therapeutic Monitoring, helping expand access to care beyond traditional clinical settings.

Healthcare leaders believe these changes with strengthen the sustainability of physical therapy practices, encourage innovation in care delivery and ultimately improve access and quality of care for Medicare beneficiaries.