NOVEMBER 2015 – Last year, Medicare fined a record number of hospitals for having too many potentially avoidable readmissions. Each year roughly 2 million patients return, costing Medicare $26 billion, though approximately $17 billion comes from potentially avoidable readmissions. Three-quarters of hospitals subject to the Centers for Medicare and Medicaid Services’ (CMS’s) Hospital Readmissions Reduction Program were penalized and stood to lose as much as 2 percent of their Medicare payments under this program, costing them thousands.

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