Medicare Financial Penalties Led To Greater Reduction Of Hospital Readmissions

Hospital readmission rates declined after Medicare implemented the Hospital Readmission Reduction Program (HRRP), which penalized hospitals for higher than expected 30-day readmission rates for target conditions. According to two recent studies, HRRP was associated overall with a reduction in readmission rates. Hospitals penalized under HRRP had greater reductions in readmission rates compared to non-penalized hospitals. Further, hospitals penalized under HRRP had greater reductions for the targeted conditions than for non-targeted conditions. Hospitals not penalized under HRRP had lower readmission rates for targeted and non-targeted conditions.

HRRP was created by the Patient Protection and Affordable Care Act . . .