The CMS' Hospital Readmissions Reduction Program is not increasing the number of observation stays, according to a new analysis of the program.
Medicare readmissions program not causing observation stay spike
Although several academic studies have found that the readmission program wasn't lowering Medicare spending and led to more observation stays, the Medicare Payment Advisory Commission said there is no evidence that trend exists.
Readmission rates from 2010 to 2016 for heart attacks, heart failure and pneumonia all dropped between 1.4% to 3.6% saving Medicare $2 billion annually, according to MedPAC's analysis sent to Congress on Friday.
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