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.

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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