Federal Policy
CMS Data Show More Hospitals Penalized for Readmissions
New CMS data show about 80% of hospitals are facing Medicare payment reductions this fiscal year under the readmissions penalty program, up from 78% the prior year. The penalties apply to hospitals with higher-than-expected readmission rates for certain conditions under Medicare's Hospital Readmissions Reduction Program. The increase continues a multi-year trend of a growing share of hospitals losing Medicare payment under the program. The story centers on Medicare fee-for-service hospital payment rather than Medicaid.
Why it mattersHospitals serving dual-eligible and Medicaid populations face compounding financial pressure as Medicare readmission penalties expand alongside existing Medicaid reimbursement constraints.