Abstract

Improving the Hospital-Acquired Condition Reduction Program through Rulemaking.

Highlights

  • The HACRP legislation (Affordable Care Act section 3008)[8] requires that hospitals in the worstperforming quartile by HAC rate receive a 1% Medicare inpatient payment penalty

  • The current methodology is insufficient to address the large heterogeneity across patients and hospitals

  • Hospitals performing more surgeries face increased risk for additional HACs, because patients undergoing surgery are eligible for more HACRP measures

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Summary

Introduction

The HACRP legislation (Affordable Care Act section 3008)[8] requires that hospitals in the worstperforming quartile by HAC rate receive a 1% Medicare inpatient payment penalty. Risk adjustment variables are used to calculate hospitals’ expected number of HACs (to compare with the observed number), affecting hospital performance comparisons. The HACRP measures incorporate wide-ranging diagnoses, increasing heterogeneity in patient characteristics across hospitals.

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