HAC penalties are financial disincentives imposed by the Centers for Medicare & Medicaid Services (CMS) to encourage hospitals to improve patient safety and reduce the incidence of HACs. These penalties are part of CMS’s broader strategy to promote high-quality, cost-effective care and reduce unnecessary healthcare costs. By penalizing hospitals with higher rates of HACs, CMS aims to incentivize healthcare providers to adopt best practices in infection control, patient safety, and quality improvement.