Community-Based Care Transitions Program Demonstration Project Launch and Looming Penalties Under PPACA Put Hospital Readmission Rates in the Spotlight

A 2007 study demonstrated that approximately $12 billion of Medicare funds are spent annually on preventable hospital readmissions. In an effort to reduce this expenditure, Section 3026 of the Patient Protection and Affordable Care Act (PPACA) provides for a five-year demonstration project called the Community-based Care Transitions Program (CCTP) to encourage collaboration among hospitals and community-based services providers for improving care transitions for high-risk Medicare beneficiaries and for reducing unnecessary hospital readmissions. AGG Partner H. Carol Saul wrote a Client Alert regarding this significant project and warns that the PPACA (Section 3025) eventually will impose penalties on hospitals with poor readmission rates. Becker’s Hospital Review published Ms. Saul’s article on Thursday, May 5, 2011. The article is titled “Community-Based Care Transitions Program Demonstration Project Launch and Looming Penalties Under PPACA Put Hospital Readmission Rates in the Spotlight.”

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