Readmission reduction

Hospital Readmissions Reduction Program

In October 2012, CMS began reducing Medicare payments for Inpatient Prospective Payment System (IPPS) hospitals with excess readmissions. Excess readmissions are measured by a ratio, by dividing a hospital’s number of “predicted” 30-day readmissions for heart attack, heart failure, pneumonia, COPD, hip/knee replacement, and coronary artery bypass graft surgery by the number that would be “expected,” based on an average hospital with similar patients. A ratio greater than 1.0000 indicates excess readmissions.

More information on how payments are adjusted.

More on the calculations.

Hospital Readmissions Reduction Program data

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