Effect of Hospital Readmission Reduction Program on Hospital Readmissions and Mortality Rates

Chronic obstructive pulmonary disease (COPD) is recognized as the third leading cause of death nationally. Globally, it has been estimated that 10% of the population has COPD; in the United States, approximately 15 million people are affected.^1,2 The annual estimated cost of COPD management in the United States is approximately $50 billion, one-third of which is directly related to inpatient hospitalization for COPD exacerbation.^3,4,5 The 30-day readmission rate after hospitalization for acute exacerbation of COPD (AECOPD) is approximately 21% with an approximate cost of $13 billion per year.^6,7 To reduce the cost and to improve patient outcomes, the Centers for Medicare and Medicaid Services (CMS) has designed several interventions with little effect.⁸

In October 2012, the Affordable Care Act added section 1886(q) to the Social Security Act and established the Hospital Readmission Reduction Program (HRRP), an initiative to decrease hospitalization costs by penalizing hospitals with high 30-day readmission rates. Under this program, hospitals received up to 3% penalty for excess readmissions after the index hospitalization with acute myocardial infarction (AMI), heart failure (HF), and pneumonia.^9-11 Hospitals are penalized if their annual readmission rates are significantly above the average national readmission rate. In 2014, the HRRP was extended to include AECOPD for the FY 2015.

Since the implementation of readmission penalties, data have shown a significant decrease in the 30-day readmission rates for all conditions.^12,13 On the other hand, studies have suggested that, at least for some conditions, the decrease in the 30-day readmission rate is associated with higher adverse patients outcomes, including higher mortality.^14,15 However, whether a decrease in readmission rates after an AECOPD hospitalization is associated with a concomitant increase in mortality has not been examined. Therefore, our objective was to examine the association of the 30-day risk-adjusted hospital readmission rate with the 30-day risk-adjusted hospital mortality rate for patients discharged with a diagnosis of AECOPD.

Data Sources

Publicly available data from three sources were used. The all-cause 30-day risk-standardized readmission rate (RSRR) and the 30-day risk-standardized mortality rate (RSMR) of each hospital for patients with AECOPD were obtained from the Hospital Compare database; a database maintained by the CMS.^16,17 In 2014, the CMS started reporting three-year running average of 30-day mortality and readmission rate data on hospitals for AECOPD hospitalizations; the data start date was July 2010.^18-22 We examined data from the FY 2010-2013 to 2014-2017 cycles on readmission and mortality reported by the CMS; this included data before and after the implementation of penalties.

Hospital characteristics were also obtained from the CMS website. Hospital ownership was defined as government (owned by Federal or state), for-profit (owned by physicians or another proprietary), or nonprofit (owned by a nonprofit organization such as a church). A hospital was considered as a teaching hospital if it obtained graduate medical education funding from the CMS.

Data on local population characteristics according to ZIP codes were obtained from the 2010 decennial census and the American Community Survey five-year (2009-2013) data files available at the United States Census Bureau website.²³ For each ZIP code, we obtained data on the total population, percentage of African Americans in the population, median income, poverty level, and insurance status.

We used Hospital service area (HSA) information obtained from the Dartmouth Atlas of Health Care crosswalk files to link local population characteristics to hospitals. The Dartmouth Atlas defined 3,436 HSAs by assigning the ZIP codes to the hospital area where the greatest proportion of their Medicare residents was hospitalized.^24,25

Hospital Compare data and Census Bureau population data were matched to the HSAs from the Dartmouth Atlas of Healthcare data at the ZIP code level. First, the ZIP code-level data from the Census Bureau were pooled by the HSAs obtained from the Dartmouth Atlas of Healthcare, followed by matching these data by the HSAs to the Hospital Compare data. Merging data from these three sources generated a dataset that contained information about readmission and mortality rates from a particular hospital and the population characteristics of the local healthcare market or neighborhood. Our final dataset included hospitals that had readmission and mortality information available at the Hospital Compare website and were included in the crosswalk files of the Dartmouth Atlas of Healthcare.