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News & Publications
06/17/2021
While the nation, hospitals and skilled nursing facilities have struggled with COVID; CMS Readmission Penalties have not been put on hold. According to Kaiser Health News, CMS is still fining half of hospitals in the US for excess readmissions.
Medicare Fines Half of Hospitals for Readmitting Too Many Patients | Kaiser Health News (khn.org)
We've heard many hospital CFOs say we're making it up in volume. However, if you have a $250,000 penalty and your Medicare operating margin is 2%, the hospital has to bring in $12,500,000 a year in order to make up for what is often 1 extra readmission per month. Most CFOs have never seen their readmission penalty reports or seen the financial math for their organization.
Skilled Nursing Facilities are now subject to the readmission penalty as well. The CMS readmission penalty for skilled nursing facilities was implemented in 2018 and facilities will soon begin seeing the effects of previous years performance on their bottom line.
Contact us.
We can help you reduce your readmissions and preserve your bottom line.