In 2013, the federal government began fining hospitals for high hospital readmission rates in an attempt to curtail premature discharges and to encourage hospitals to engage in better discharge planning. Staring in October 2018, the federal government will be giving nursing homes bonuses or penalties based upon their Medicare rehospitalization rates.
Many health experts believe that financial incentives will encourage nursing home to avoid sending patients t the hospital. However, some health advocates fear the campaign against hospitalizing nursing home patients will encourage poor nursing homes not to send anyone to the hospital if Medicare reimbursement is linked to readmission rates. You can read more about the new policy at the below link.