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Decreases In Readmissions Credited To Medicare's Program To Reduce Hospital Readmissions Have Been Overstated
Christopher Ody1, Lucy Msall2, Leemore S Dafny3
1Christopher Ody ( c-ody@kellogg.northwestern.edu ) is a research assistant professor in the Kellogg School of Management, Northwestern University, in Evanston, Illinois.
Abstract:
Medicare's Hospital Readmissions Reduction Program (HRRP) has been credited with lowering risk-adjusted readmission rates for targeted conditions at general acute care hospitals. However, these reductions appear to be illusory or overstated. This is because a concurrent change in electronic transaction standards allowed hospitals to document a larger number of diagnoses per claim, which had the effect of reducing risk-adjusted patient readmission rates. Prior studies of the HRRP relied upon control groups' having lower baseline readmission rates, which could falsely create the appearance that readmission rates are changing more in the treatment than in the control group. Accounting for the revised standards reduced the decline in risk-adjusted readmission rates for targeted conditions by 48 percent. After further adjusting for differences in pre-HRRP readmission rates across samples, we found that declines for targeted conditions at general acute care hospitals were statistically indistinguishable from declines in two control samples. Either the HRRP had no effect on readmissions, or it led to a systemwide reduction in readmissions that was roughly half as large as prior estimates have suggested.
Insights
Medicare's Hospital Readmissions Reduction Program (HRRP) may not have significantly lowered patient readmission rates. Changes in diagnosis documentation standards may have overstated the program's impact on hospital readmissions.
Area of Science:
- Health Services Research
- Health Policy
- Healthcare Quality Improvement
Background:
- Medicare's Hospital Readmissions Reduction Program (HRRP) aimed to decrease patient readmissions for targeted conditions.
- Previous studies indicated HRRP success in lowering risk-adjusted readmission rates at general acute care hospitals.
Purpose of the Study:
- To re-evaluate the effectiveness of the HRRP by accounting for concurrent changes in electronic health record standards.
- To assess the true impact of HRRP on hospital readmission rates, independent of documentation changes.
Main Methods:
- Analyzed Medicare data, adjusting for changes in diagnosis documentation standards following revised electronic transaction standards.
- Compared readmission rate declines in HRRP-targeted conditions against control groups, adjusting for baseline readmission differences.
Main Results:
- Accounting for revised documentation standards reduced the observed decline in HRRP-targeted readmission rates by 48%.
- After adjusting for pre-HRRP readmission rates, declines for targeted conditions were statistically similar to control groups.
- The HRRP's effect on readmissions was either negligible or approximately half of previously estimated reductions.
Conclusions:
- The effectiveness of the Hospital Readmissions Reduction Program may be significantly overstated due to confounding factors.
- Policy evaluations must account for simultaneous changes in healthcare data reporting standards to accurately assess program impact.
- Further research is needed to determine the precise impact of HRRP and identify effective strategies for reducing hospital readmissions.
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