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Medicare to fine hospitals for readmissions

– If you or an elderly relative has been hospitalized recently and noticed extra attention when the time came to be discharged, there’s more to it than good customer service.

As of today, Medicare will start fining hospitals that have too many patients readmitted within 30 days of discharge due to complications. The penalties are part of a broader push under President Obama’s health care law to improve quality while also trying to save taxpayers money.

About two-thirds of the hospitals serving Medicare patients will be hit with penalties averaging about $125,000 per facility this coming year, according to government estimates.

Data to assess the penalties have been collected and crunched, and Medicare has shared the results with hospitals. Medicare plans to post details online in October, and people can look up how their community hospitals performed by using the agency’s “Hospital Compare” website.

It adds up to a new way of doing business for hospitals, and they have scrambled to prepare for well over a year. They are working on ways to improve communication with rehabilitation centers and doctors who follow patients after they’re released, as well as connecting individually with patients.

“There is a lot of activity at the hospital level to straighten out our internal processes,” said Nancy Foster, vice president for quality and safety at the American Hospital Association. “We are also spreading our wings a little and reaching outside the hospital, to the extent that we can, to make sure patients are getting the ongoing treatment they need.”

Still, industry officials say they have misgivings about being held liable for circumstances beyond their control. They also complain that facilities serving low-income people, including many major teaching hospitals, are much more likely to be fined, raising questions of fairness.

“Readmissions are partially within the control of the hospital and partially within the control of others,” Foster said.

Consumer advocates say Medicare’s nudge to hospitals is long overdue and not nearly stiff enough.

“It’s modest, but it’s a start,” said Dr. John Santa, director of the Consumer Reports Health Ratings Center. “Should we be surprised that industry is objecting? You would expect them to object to anything that changes the status quo.”

For the first year, the penalty is capped at 1 percent of a hospital’s Medicare payments. The overwhelming majority of penalized facilities will pay less. Also, for now, hospitals are only being measured on three medical conditions: heart attacks, heart failure and pneumonia.

Under the health care law, the penalties gradually will rise until 3 percent of Medicare payments to hospitals are at risk. Medicare is considering holding hospitals accountable on four more measures: joint replacements, stenting, heart bypass and treatment of stroke.

If General Motors and Toyota issue warranties for their vehicles, hospitals should have some similar obligation when a patient gets a new knee or a stent to relieve a blocked artery, Santa contends.

“People go to the hospital to get their problem solved, not to have to come back,” he said.

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