The Boomerang Effect
CMS Dollars Part II: HRRP Made Simple The Boomerang Effect
Nadia Christensen, MD
Hospital readmissions account for a huge portion of US healthcare costs. As clinicians we are always trying to understand the root cause of why one of our patients might bounce back. In some circles, we refer to this as the boomerang effect.
Over the years, in an effort to stem the rising costs of healthcare dollars spent on readmissions, CMS has created many programs to encourage hospitals to address this problem. One of these programs is the Hospital Readmission Reduction Program (HRRP). HRRP was established by the Affordable Care Act in 2012 and required CMS to reduce payments to hospitals with excess readmissions.