Report: Financial penalties prove effective against readmissions

Based on data collected from more than 2,800 hospitals, researchers were able to prove the effectiveness of the Hospital Readmission Reduction Program (HRRP). Harvard and Beth Israel Deaconess Medical Center researchers added that facilities that were penalized the most saw the greatest improvement in readmission reduction. Nearly $1 billion in penalties have been imposed so far.

“It's a quite clear example that when hospitals are reimbursed, not just for how much they do but how well they do it, it makes an impact on their behavior,” study co-senior author Robert W. Yeh, MD, told HealthLeaders. “That is what you would expect from an individual and this seems to incentivize organizations to act collectively to move in the same direction.”

Researchers looked at 30-day readmission rates for patients with acute myocardial infarction (AMI), congestive heart failure, or pneumonia. In January 2008, the readmission rates at penalized institutions were 21.9% for AMI, 27.5% for heart failure, 20.1% for pneumonia, compared to 18.7%, 24.2%, 17.4%, at non-penalized facilities. However, once HRRP was announced in March 2010, rehospitalization rates declined notably faster at penalized hospitals. Compared to non-penalized facilities, penalized hospitals decreased their AMI readmissions by 1.24%,  1.25% for heart failure, and 1.37% for pneumonia.

For a full interview with the researchers, visit HealthLeaders Media.