Which program aims to reduce readmissions by penalizing hospitals with higher 30-day readmissions?

• A. MACRA
• B. HRRP
• C. BPCI
• D. ACO

Answer: (A)

The program that directly reduces Medicare payments to hospitals with higher than expected 30-day readmission rates is the Hospital Readmissions Reduction Program (HRRP). It was created to push hospitals to improve care transitions, discharge planning, and follow-up after discharge so patients don’t bounce back within 30 days. If a hospital’s readmission rate for specific conditions is higher than expected, Medicare imposes a penalty by reducing payments, which incentivizes invest­ment in better post-discharge care, patient education, and coordination with primary care and post-acute providers.

Other options relate to different payment reform ideas that influence overall value and care delivery but don’t specifically penalize hospitals for readmissions. MACRA focuses on performance-based payment adjustments for clinicians; bundled payments (BPCI) revolve around paying for an entire episode of care; and Accountable Care Organizations (ACO) focus on shared savings and accountability across providers. The HRRP is the one with the explicit readmission penalty mechanism.