The Center for Medicare & Medicaid Services (CMS) on August 13, 2026, approved a New Technology Add-On Payment (NTAP) designation for Aidoc’s artificial intelligence (AI) diagnostic technology, the CARE Body CT Multi-Triage tool. This marks the first time CMS has granted NTAP designation for an AI-enabled diagnostic tool and, as a result, hospitals and other providers that utilize the technology will receive a supplemental payment for adopting the service.
Healthcare technology companies should be aware of the potential for NTAP designation for AI-enabled clinical treatment technologies. The designation and increased reimbursement can increase the marketability of treatment technologies. Similarly, health systems and hospitals should evaluate NTAP-designated technologies and assess their eligibility for reimbursement and compliance programs to determine whether those technologies can be deployed.
The NTAP Program
Under the NTAP program, CMS provides supplemental payments to facilities that adopt qualifying new technologies. In theory, the NTAP program incentivizes hospitals to adopt new technologies while reducing the risk associated with early implementation.
To qualify for an NTAP, a new medical service or technology must meet the following three criteria: 1) it must be new (the “newness criterion”), 2) it must be costly, such that the rate otherwise applicable is determined to be inadequate (the “cost criterion”), and 3) it must demonstrate a substantial improvement over existing services or technologies (the “substantial clinical improvement criterion”).
Additionally, applicants for the NTAP must receive marketing authorization from the U.S. Food and Drug Administration (FDA) for the new medical service or technology by May 1 of the year prior to the beginning of the fiscal year for which the application is submitted. There are additional alternative eligibility pathways that require participation in FDA programs and certain FDA designations, including the Breakthrough Devices Program.
Following approval, the NTAP will be the lesser of 65 percent of the costs of the technology or 65 percent of the amount by which the costs of the case exceed the standard Medicare Severity Diagnosis-Related Group (MS-DRG) payment.
Approval of Aidoc’s CARE Body CT Multi-Triage
Beginning on October 1, 2026, hospitals will be eligible for NTAP reimbursement for use of Aidoc’s CARE Body CT Multi-Triage technology. These supplemental payments will continue for three years.
The technology uses AI to identify findings in contrast and non-contrast computed tomography (CT) imaging of the chest, abdomen and pelvis. It is “designed to help clinicians prioritize cases requiring urgent attention, supporting opportunities for faster diagnosis and treatment for patients with time-sensitive conditions.”1
During the NTAP reimbursement window, qualifying cases using the technology are eligible for supplemental payments, reducing the financial risk associated with early adoption.
Implications for Hospitals and Health Systems
Health systems should consider whether supplemental payments available under the NTAP program would make investments in new technologies more feasible. Further, health systems should comprehensively review their eligibility, billing practices and CMS requirements to ensure compliance when adopting NTAP-designated technologies. When employing new AI-enabled technologies, systems should ensure compliance with the Health Insurance Portability and Accountability Act (HIPAA) and state laws governing the utilization of AI programs in the healthcare setting.
Likewise, digital health companies should evaluate whether their products may qualify for NTAP designation. The designation could encourage broader provider adoption of technologies while increasing patient access to cutting-edge tools.
Holland & Knight’s Healthcare Team can assist hospitals, health systems and technology companies with regulatory risk analyses and navigation of reimbursement processes and the NTAP program. For more information or questions, reach out to the authors.
Notes
1 Aidoc, “Aidoc’s CARE Body CT Multi-Triage receives eligibility for Medicare New Technology Add-on Payment,” August 13, 2026.