The Centers for Medicare & Medicaid Services (CMS) has finalized several significant updates to the Medicare Payment Policies, including a rule aimed at lowering payments for surgeries while also increasing pay rates for physicians. The finalized 2026 Physician Fee Schedule introduces adjustments that will impact outpatient evaluation and management (E&M) audits, with implications for compliance. While many physicians may benefit from increased pay rates, concerns have been raised that hospital doctors could miss out on these enhancements. As these changes loom, stakeholders are analyzing how the proposed rules will shape the future of healthcare reimbursement.