Close to 3,100 hospitals are subject to payment deductions if they consistently readmit Medicare patients. Coronavirus chaos notwithstanding, more than 80% of them will feel the pain of penalties during the current fiscal year, according to a review of federal records by Kaiser.
The COVID crisis had nothing to do with this ninth annual application of CMS’s Hospital Readmissions Reduction Program: The latest set of dings was calculated using hospitals’ readmission rates between July 2016 and June 2019.
Federal fiscal year 2021 began Oct. 1. Retroactive to that date, more than 2,500 hospitals will suffer an average deduction of 0.69%, Kaiser’s KHN reports.
Meanwhile more than 600 hospitals will lose out on 1% or more of their potential total Medicare payment, and 39 will be hit with the maximum fine of 3%.
“It’s unfortunate that hospitals will face readmission penalties” this fiscal year, Akin Demehin, policy director for the AHA, tells Kaiser. “Given the financial strain that hospitals are under, every dollar counts, and the impact of any penalty is significant.”
KHN also spoke with Michael Millenson, a healthcare quality and safety consultant.
“Every industry complains the penalties are too harsh,” Millenson says. “If you’re going to tell me we don’t need any economic incentives to do the right thing because we’re always doing the right thing—that’s not true.”
Be that as it may, some respite may be ahead for the strugglers. As KHN reminds, CMS announced two months ago that, if the COVID turmoil continues, the agency may be hindered from assessing hospitals on readmission performance.
Dave P. has worked in journalism, marketing and public relations for more than 30 years, frequently concentrating on hospitals, healthcare technology and Catholic communications. He has also specialized in fundraising communications, ghostwriting for CEOs of local, national and global charities, nonprofits and foundations.