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Health Care

Hospitals Face Penalties For High Readmission Rates

By Ken Little, posted Mar 1, 2013

About one in five Medicare patients who are hospitalized find themselves returning within 30 days. Federal health care regulators have taken notice, and under provisions of the Affordable Care Act, some hospitals are incurring financial penalties for excess readmissions.

That penalty could triple by 2014 for hospitals that don’t cut the number of readmissions within 30 days of discharge, under provisions of the health reform law.

The reduction in payment can be up to 1 percent for fiscal year 2013, and the maximum reduction in payment will be 3 percent in 2015.

The Centers for Medicare & Medicaid Services (CMS) Hospital Readmissions Reduction Program administers Medicare. 

The changes to Medicare reimbursement focus on excess readmissions for patients with three diseases: heart failure, acute myocardial infarction or pneumonia.

Brunswick Novant Medical Center “will see a minor reduction in payment for fiscal year 2013 from CMS due to readmission rates,” Stephen Wallenhaupt, Novant Health’s chief medical officer, said in an email response to questions.

New Hanover Regional Medical Center faired better in the recent review.

“As a result of the efforts of our physicians and staff, New Hanover Regional Medical Center, its Cape Fear campus and Pender Memorial Hospital were part of the 29 percent of hospitals nationwide that did not receive penalties from [CMS],” hospital spokeswoman Erin Balzotti said in an email.

With the readmission issue looming, New Hanover Regional launched a pilot program to help improve patients’ transitions from the hospital to their homes.

The hospital chose a pilot unit to try strategies such as scheduling patients’ follow-up appointments, helping them with prescriptions, making home visits and calling patients to make sure they understand post-care instructions, Balzotti said.

The goal of the CMS initiative is to slow growth in hospital inpatient costs, which account for a quarter of the more than the half-trillion dollars in annual Medicare expenditures. Another push behind the initiative is to try and increase the value of medical care delivered to its beneficiaries.

Balzotti pointed out that like at other hospitals, New Hanover Regional officials were concerned about the methodology in determining some of the penalties. But she said expanding their focus about what happens after patients leave the hospital could uncover ways to help them better recover. She also said the hospital was looking at reasons for readmissions beyond the three conditions CMS has outlined to find new ways to improve patient care.

Wallenhaupt said Novant Health supported any opportunity to improve care, and officials were 

taking steps to address the issue.

Novant Health is working to “help patients understand their medical condition and how they can partner with their medical care team to improve their health,” Wallenhaupt said. 

Pino appointed SEAHEC president and CEO

The Health Sciences Foundation’s board of directors recently appointed Joseph Anthony Pino as president and CEO of the South East Area Health Education Center (SEAHEC).

 

Pino previously served in several professional service roles, including as chief of staff at New Hanover Regional Medical Center.

He provided leadership in the development and creation of Pediatric Specialty Services of 

SEAHEC, providing care to children at the New Hanover Regional’s Women’s & Children’s  Hospital.

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