October 2, 2019

CMS: New round of readmission penalties affects 2,583 hospitals

By: Judy Mathias
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Editor's Note

Data from the Affordable Care Act’s Hospital Readmissions Reduction Program (HRRP) shows that Medicare cut payments to 2,583 hospitals on October 1 because of the number of patients readmitted within a month, the October 1 Kaiser Health News reports.

The Centers for Medicare & Medicaid Services (CMS) estimates that the penalties will cost hospitals $563 million over a year’s time.

Of 3,129 general hospitals evaluated in HRRP, 83% received a penalty, and 56 hospitals were assessed the maximum reduction in payments of 3%.

Though CMS began applying the penalties in 2012, disagreements continue on whether they have improved patient safety.

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