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An Opportunity to Improve Medicare's Planned Readmissions Measure

Chad Ellimoottil1,2,3, Roger K Khouri2,3, Apoorv Dhir2,3

  • 1Institute for Healthcare Policy and Innovation, University of Michigan, Ann Arbor, Michigan, USA. cellimoo@med.umich.edu.

Insights

The Centers for Medicare & Medicaid Services (CMS) planned readmission algorithm may misclassify unplanned hospital readmissions. Data suggests many "planned" readmissions show signs of being emergent, impacting hospital penalties.

Area of Science:

  • Health Services Research
  • Healthcare Policy
  • Medical Economics

Background:

  • The Hospital Readmission Reduction Program (HRRP) by the Centers for Medicare & Medicaid Services (CMS) aims to reduce hospital readmissions.
  • CMS uses a planned/unplanned algorithm to differentiate between scheduled and unscheduled rehospitalizations for penalty calculations.

Purpose of the Study:

  • To evaluate version 3.0 of the CMS planned readmission algorithm.
  • To determine if readmissions classified as planned by the algorithm are truly unplanned.

Main Methods:

  • Analysis of 143,054 index admissions and 16,116 thirty-day readmissions across 131 hospitals.
  • Examination of readmission claims data, including admission type and emergency department charges.

Main Results:

  • Only 1252 readmissions were classified as planned by the algorithm.
  • A significant majority (57.8%) of these planned readmissions had an "emergent" or "urgent" admission type.
  • Many planned readmissions (41.0%) incurred emergency department charges, indicating potential unpredicted hospital returns.

Conclusions:

  • The current CMS planned readmission algorithm may inaccurately categorize unplanned readmissions as planned.
  • Incorporating admission type and emergency department charges into the algorithm could improve accuracy.
  • Refining the algorithm is crucial for fair HRRP penalty assessments.

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