High Readmissions Cost More Than 2k Hospitals $280M in Medicare Funds

The Readmissions Reduction Program, which is part of the Patient Protection and Affordable Care Act, has finally reared its head at hospitals, as 2,211 hospitals will be penalized a cumulative $280 million in Medicare funds due to high rates of readmission after discharge, according to an in-depth analysis at Kaiser Health News.

This is the first year of the readmission program. Penalties ranged from 0.01 percent to the maximum 1 percent of base Medicare reimbursements. In total, 278 hospitals will lose the maximum 1 percent, including well-known institutions such as Florida Hospital Orlando, University of Miami Hospital, Beth Israel Deaconess Medical Center in Boston, Tufts Medical Center in Boston, Henry Ford Hospital in Detroit, Barnes-Jewish Hospital in St. Louis, Montefiore Medical Center in Bronx, N.Y., and others.

's analysis showed that hospitals in New Jersey, New York, the District of Columbia, Arkansas, Kentucky, Mississippi, Illinois and Massachusetts will be penalized the most, and safety-net hospitals that care for the poor will also have higher rates of Medicare penalties, according to the report.

Starting in October 2013, the maximum penalty will increase to 2 percent of base Medicare reimbursements, and it will be capped at 3 percent in October 2014.

To view all of the hospitals that will face Medicare readmissions penalties, click on KHN's spreadsheet here (pdf).

More Articles on Readmissions Reduction Program:

Are You Ready for the New Era of Driving Value in Medicare?

CMS' FY 2013 IPPS Final Rule: 9 Observations

What Hospitals are Doing to Prepare for Medicare Readmission Penalties

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