KNG Health was contracted to calculated the total score under the HAC Reduction Program and assess the potential financial penalties to hospitals under this program for 2015. The program imposes a penalty of 1 percent on Medicare payments to hospitals with the highest rate (top quartile) of hospital-acquired conditions. We calculated the scores for each of the two domains using the selected AHRQ Patient Safety Indicators, Hospital Compare data and select CDC Healthcare-associated infection measures. We modeled the scoring under the CMS final rule and evaluated the types of hospitals that will receive a penalty under the HAC Reduction Program. We developed recommendations related to alternative approaches to ranking hospital performance and compared the impact of these alternative approaches on the distribution of penalties.
Services : Payment Policy & Delivery System Innovation, Quality & Performance Measurement Expertise: Medicare, Payment and Delivery System Innovation, Quality Measurement and Provider Performance
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