Hospital Readmissions Reduction Program (HRRP)
The Hospital Readmissions Reduction Program (HRRP) is a Medicare program that reduces inpatient payments to hospitals with excess 30-day readmissions for specific conditions and procedures, with penalties of up to 3% of Medicare inpatient payments. Created by the Affordable Care Act and effective since fiscal year 2013, HRRP is the reason hospitals scrutinize the readmission performance of their post-acute partners, including home health agencies.
Definition
The Hospital Readmissions Reduction Program (HRRP) is a Medicare program that reduces inpatient payments to hospitals with excess 30-day readmissions for specific conditions and procedures, with penalties of up to 3% of Medicare inpatient payments. Created by the Affordable Care Act and effective since fiscal year 2013, HRRP is the reason hospitals scrutinize the readmission performance of their post-acute partners, including home health agencies.
Why it matters
Hospital Readmissions Reduction Program (HRRP) is part of the Quality & Outcomes vocabulary used across home health operations, documentation, and revenue cycle. Understanding it helps clinicians, QA leads, and administrators stay aligned on care quality and compliance.
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