One of the largest experiments in health care payments in recent years is the Hospital Readmission Reduction Program (HRRP), a provision of the Affordable Care Act. Roughly 20% of Medicare admissions lead to a readmission within 30 days, and many readmissions are considered prima facie evidence of poor care. Historically, readmissions were a source of revenue for hospitals but a large cost for the Medicare program. The HRRP cut hospitals’ Medicare inpatient payments as a penalty for high readmission rates on targeted conditions.
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Ody C, Cutler D. The Medical Hospital Readmission Reduction Program: Does It Do Any Good? JAMA Intern Med. 2019;179(9):1174–1175. doi:10.1001/jamainternmed.2019.1003
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