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Medicare Readmission Reduction<br />

Program<br />

• Effective FY 2013<br />

• Conditions Measured:<br />

• FY2013-2014 Heart Attack, Heart Failure and Pneumonia<br />

• FY2015 expand to 4 additional conditions (COPD, CABG,<br />

PTCA, Other Vascular)<br />

• Reduction applies to all base DRG payment amounts<br />

(excludes IME, DSH, outliers) in hospitals with excess<br />

readmissions<br />

• “Excess” defined as ratio of actual to expected readmissions<br />

(risk adjusted)<br />

• Reduction is capped at 1%, 2%, and 3% in initial 3 years<br />

2012 AAMC Annual Meeting

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