What is the main goal of the Hospital Readmissions Reduction Program (HRRP)?

• A. To fund new hospital construction.
• B. To reduce avoidable 30-day readmissions by penalizing hospitals with higher-than-expected readmission rates.
• C. To increase hospital length of stay to improve outcomes.
• D. To pay hospitals a fixed amount regardless of readmissions.

Answer: (B)

The goal is to reduce avoidable 30-day readmissions by penalizing hospitals that have higher-than-expected readmission rates. Medicare ties financial penalties to a hospital’s observed versus expected 30-day readmissions for certain conditions, creating a financial incentive for hospitals to improve discharge planning, care coordination, and post-discharge follow-up. This makes hospitals invest in smoother transitions of care and better outpatient support to prevent patients from returning shortly after discharge. The program is not about funding new construction, it doesn’t reward longer hospital stays, and it doesn’t pay a fixed amount regardless of readmissions.