The Hospital Readmissions Reduction Program (HRRP) was established by the Affordable Care Act and requires the Centers for Medicare and Medicaid Services (CMS) to reduce payments to hospitals with excess hospital readmissions. The intention of the HRRP is to reduce hospital readmissions, which occur for approximately 20 percent of Medicare admissions and imposes a cost of approximately $17 billion per year. While there have been reports of a decline in readmissions associated with the HRRP, there is only one formal evaluation of the HRRP program and that was limited to hospitals in New York. We will use administrative data from Medicare on hospital inpatient spending and mortality, and two quasi-experimental research designs (difference-in-differences and regression kink) to assess whether hospitals that were penalized under the HRRP responded to the penalties by changing their processes of care. Specifically, we propose to obtain estimates of the effect of the HRRP penalties on inpatient spending for DRGs that were (e.g., AMI) and were not (e.g., COPD) used to assess readmission penalties. We will also obtain estimates of the effect of the HRRP on discharge status, readmission (penalty in round 2), and mortality for patients in DRGs that were and were not used to assess future penalties. We propose to examine the effects of the first two rounds of the HRRP program.

Public Health Relevance

The absence of evidence on the effect of the Hospital Readmission Reduction Program (HRRP) represents an important gap in public health knowledge, as the HRRP is one of the most prominent changes in Medicare and it is widely believed to be an important part of CMS's program to improve quality and lower the costs for Medicare patients. Our proposed study will fill an important gap in public health knowledge. Our proposed research will provide the most credible and comprehensive assessment of the effectiveness of the HRRP program, which is an important pillar of health care reform and an important public health program intended to improve the quality of patient care and reduce costs.

Agency
National Institute of Health (NIH)
Institute
Agency for Healthcare Research and Quality (AHRQ)
Type
Research Project (R01)
Project #
1R01HS025586-01
Application #
9390295
Study Section
Healthcare Systems and Values Research (HSVR)
Program Officer
Sandmeyer, Brent
Project Start
2017-08-16
Project End
2019-07-31
Budget Start
2017-08-16
Budget End
2018-07-31
Support Year
1
Fiscal Year
2017
Total Cost
Indirect Cost
Name
University of Illinois at Chicago
Department
Miscellaneous
Type
Schools of Arts and Sciences
DUNS #
098987217
City
Chicago
State
IL
Country
United States
Zip Code
60612