The Centers for Medicare & Medicaid Services (CMS) has finalized its Physician Fee Schedule for calendar year 2026, which includes a significant 2.5% pay increase for physicians, but also introduces controversial cuts to specialty services that may adversely affect doctors in hospitals and outpatient settings. The finalized rule emphasizes chronic disease management and incorporates a modernization of payment policies aimed at increasing payment accuracy and reducing wasteful spending. While some sectors, such as telehealth, receive mixed news, the American Medical Association and various medical organizations are raising concerns over the potential detrimental impacts of the efficiency adjustment rule on physician payments. Key stakeholders, including imaging societies, have voiced opposition to the cuts, urging Congress to intervene. As CMS transitions to a more comprehensive healthcare approach, the changes are ushering in a new era for reimbursement practices.