Safety-net hospitals being penalized by Medicare value-based payment programs have found ways to offset those losses, but those methods may be volatile and temporary, an AHRQ study has found. Researchers examined the financial impacts of the Hospital Readmissions Reduction Program and the Value-Based Purchasing Program, which in 2013 began to financially penalize hospitals that failed to meet certain standards on hospital readmissions and other measures of quality. The analysis showed penalties were higher for safety net hospitals, which treat a large proportion of low-income patients. However, unlike other hospitals, safety-net hospitals appear to have offset higher penalties with revenues such as charitable contributions and government funding. Researchers cautioned that these funding streams may fail to compensate for losses over time. Access the abstract of the article, which was published in Health Services Research.
Health Serv Res. 2018 Feb 8. doi: 10.1111/1475-6773.12833. [Epub ahead of print]
Medicare Payment Penalties and Safety Net Hospital Profitability: Minimal Impact on These Vulnerable Hospitals.
DATA SOURCES/STUDY SETTING:
© Health Research and Educational Trust.
Hospitals; financial performance; payment policy