hospital acquired condition (hac) penalties

How are HAC Penalties Calculated?

HAC penalties are calculated based on a hospital’s performance on specific quality measures. CMS assesses hospitals using the HAC Reduction Program, which evaluates performance in areas such as patient safety indicators and healthcare-associated infections. Hospitals are ranked according to their performance, and those in the bottom quartile face a 1% reduction in their Medicare reimbursements. This financial penalty can have significant implications for hospitals, particularly those with already thin profit margins.

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