Targeting and reducing hospital readmission rates has become a top priority for the Medicare program, and beginning in October, the Patient Protection and Affordable Care Act will start slashing payments to hospitals with higher than average readmission rates under the new fee-for-service program.
The need for proven readmission strategies has never been more urgent with the regulation taking effect later this year. In fiscal year 2013, the payment decrease can be up to one percent of Medicare reimbursement, rising to two percent in 2014 and three percent in 2015.
A new working paper published in January by America’s Health Insurance Plans, the industry group that represents health insurance companies, says there are many ways to measure readmission rates, some of which may be suitable for certain purposes but not others.
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