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

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.