MHA Seeks Hospital Penalty Reform
The Massachusetts Hospitals Association (MHA) has asked the Massachusetts Legislature to direct MassHealth to use what it called a "more equitable system" for issuing penalties against hospitals for patient readmission rates.
In fiscal 2012, MassHealth introduced a new preventable readmission policy for hospitals determined to have higher-than-expected preventable readmission rates, which resulted in reimbursement reductions for 20 Bay State hospitals, according to the MHA. In fiscal 2012, MassHealth penalties increased, and now apply to all hospital services – not just readmissions, the MHA said.
The MHA made its request in a budget letter to the House Ways and Means Committee, according to the MHA's Monday report. The letter asks that MassHealth, the state agency that administers health insurance for low-income residents, limit penalties to only readmissions that exceed an expected number calculated by MassHealth.
"The current penalty is seriously flawed from both a public policy and a methodological perspective. It unfairly punishes hospitals without advancing the objective of reducing preventable readmission," MHA's Executive Vice President Tim Gens said in the report. "It may work as a budget-cutting initiative for the state, but it does little to promote better patient care."
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