The Affordable Care Act established the Hospital Readmissions Reduction Program in 2012, aiming to reduce payments to hospitals with excess readmissions, encouraging better patient care.
The Affordable Care Act (ACA) established the Hospital Readmissions Reduction Program on October 1, 2012. This program requires the Centers for Medicare & Medicaid Services (CMS) to reduce payments to Inpatient Prospective Payment System (IPPS) hospitals with excess readmissions.
Excess readmissions are measured by a ratio comparing actual readmissions to predicted readmissions for certain conditions. Hospitals with higher than expected readmission rates may face penalties in the form of reduced payments from CMS.
This initiative aims to incentivize hospitals to provide high-quality care to reduce avoidable readmissions and improve patient outcomes.
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