Readmission Rate and Insurance Type of the Patient

One of the programs instituted through the Affordable Care Act (ACA), also known as Obamacare, is the Hospital Readmissions Reduction Program (HRRP). This program focuses on the readmission of the patients within 30-days of discharge. Hospitals that perform worse than the national average are penalized up to 3% of their Medicare payments. While the program targets Medicare beneficiaries, it is likely that changes hospitals make to reduce readmissions will benefit all patients.

An article published in Health Affairs examines this question. Authors find that the readmission rates declined after the HRRP went into effect (not surprising as it has been shown by us and many others). In addition, they also report that readmissions declined for both Medicare and Medicaid patients. However, readmission rate of Medicaid patients remained higher than Medicare patients. Readmission rate was lowest for patients who had insurance throughout the study period and declined at a similar rate compared to others.

This study highlights an important but often neglected area when examining readmissions. Readmissions depend on three main factors:

1) Hospital Discharge Practices: These are factors that are under the control of the hospital (physicians and hospital employees). These include adequate discharge instructions, adequate hand-offs to the outpatient provider, adequate education about patient illness during hospitalization, making followup appointments, etc.

2) Patient factors: These includes the severity of the underlying illness of the patient. Some patients are far sicker and even when they are discharged from hospitals, they are just beyond the edge of the need for hospitalization. A small change in patient’s condition leads to a visit (and admission) back to the hospital.

3) Social support factors: These include support from family, friends, community, and other resources.

Of these three, very little attention has been paid to the third main factor, social support. Patients with private insurance are likely to have more resources and stronger support. On the other hand, patients on Medicaid are likely to be poor with an inadequate social support system. I believe that we will start hitting the wall with regard to the readmission rate reduction and the rate of decline in readmissions will start slowing down (if it is already not slowing). Ultimately, as a society, we will have to focus on the social support aspect of readmissions to keep patients healthy and out of the hospitals.