Hospital readmission reduction program

October 29, 2019

CMS Issues New Medicare Reimbursement Penalties to Hospitals for CY 2020

On October 1, The Centers for Medicare & Medicaid Services (CMS) initiated a series of penalties on U.S. hospitals under the Hospital Readmission Reduction Program for CY 2020. Overall, Medicare cut payments to 2,583 hospitals under the initiative, which seeks to reduce the number of patients who return for a second stay within a month. The severity and broad application of the penalties, which Medicare estimates will cost hospitals $563 million over a year, follows the trend of the past few years. Of the 3,129 general hospitals evaluated in the Hospital Readmission Reduction Program, 83% received a penalty, which will be deducted from each payment for a Medicare patient stay over the fiscal year from October 1, 2019-October 1,2020. The penalties […]