What is the Impact of Medicare’s Policy Not To Pay For Treating Hospital-Acquired Conditions?.Abstract(Submitted).
In 2008 Medicare stopped reimbursing hospitals for treating eight avoidable hospital-acquired conditions. Using 2006-2010 Massachusetts data, we model the financial impact of this policy on six such conditions. Options to strengthen the incentives include further payment modifications for hospital-acquired conditions or expanding the hospital-acquired condition policy to exclude payment for consequences, additional procedures, and readmissions. We also examine the effect of the change in policy on hospital behavior, rate of physician errors and quality of care.