Updated: August 14, 2023
- Across hospital types, patients generally rated their care facilities worse in the 2022 Hospital Consumer Assessment of Healthcare Providers and Systems survey compared with the same period in 2021 and 2019. (The survey was not collected in 2020 due to the pandemic.)
- Among acute-care hospitals, smaller facilities consistently scored higher than medium and large hospitals on all HCAHPS measures. Both major and minor teaching hospitals tended to score similarly for most measures.
- Readmission rates for fiscal 2023 saw fewer hospitals getting large penalties compared with fiscal 2022. This is the first year the Centers for Medicare & Medicaid Services is using pandemic-era data to inform payment adjustments under its Hospital Readmissions Reduction Program, and the resulting penalties are the lowest hospitals have seen in nearly a decade.
- For fiscal 2023, hospitals with the lowest percentage of people eligible for both Medicare and Medicaid coverage in peer group 1 received the highest percentage of penalties over 1% from CMS. Peer group 1 also had the highest percentage of hospitals with no penalties based on their performance in reducing excess readmissions.
CMS Peer Groupings
The Centers for Medicare and Medicaid Services reduces payments up to 3% based on a hospital's performance in reducing excess readmissions for specific program measures, such as Chronic obstructive pulmonary disease (COPD).
In order to account for the challenge of treating different levels of dual-eligible patients (patients eligible for both Medicare and Medicaid), CMS groups hospitals into five peer groups, with peer group 1 having the lowest percentage of dual eligibles and peer group 5 the highest percentage.
Hospital performance is then assessed based on comparison to their peer group.
Penalty level for hospitals, by CMS peer group
Acute Care and Critical Access Hospitals
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