Hospital Readmission Rates Decline

Medicare beneficiary hospital admission rates continue to fall, according to a recent announcement from the Centers for Medicare & Medicaid Services (CMS).

Preliminary claims data reported by the CMS shows the Medicare readmission rate averaged less than 18% over the first eight months of 2013, translating into 130,000 fewer hospital readmissions between January 2012 and August 2013.

The decline is attributed to reforms outlined in the Affordable Care Act (ACA) and its penalties for revolving-door patients. Prior to the ACA reforms, the all-cause 30-day hospital readmission rate among Medicare fee-for-service beneficiaries held at a steady 19%. That number fell to 18.5% in 2012 and continues to steadily drop, according to the recent CMS blog.

Avoidable hospital readmission is attributed to low-quality care and lack of follow-up services. According to a CMS statement, ““While we continue to monitor and study these encouraging reductions, what is fleas is that intense focus on reducing hospital re-admissions through improved process of care and new tools in the Affordable Care Act are having a demonstrably positive impact.”

Nursing homes have become a natural extension of hospital care for seniors. Medicare will pay for up to 100 days in a nursing home. The reduction in hospital readmissions increases demand for direct-care workers — which includes certified nursing assistants and personal care assistants  —  as patients are encouraged to receive in-home care. Senior care costs in a nursing home setting can run up to $8,000 per month for around-the-clock care.

Caregiverlist provides the daily costs and ratings of nursing homes nationwide and explains all senior care options.