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Lower hospital readmissions a mere label change, analysis says

By Bloomberg  
   August 28, 2015

Lower U.S. hospital readmission rates that have been touted as an Obamacare victory are due mostly to a billing gimmick that increases costs to patients, health-care researchers said. To dodge hefty penalties from Medicare for repeat admissions, hospitals increasingly shunt returning patients to emergency rooms or classify them as "observation stays," which put patients on the hook for more of the bill, according to an analysis published in Health Affairs Blog. Medicare, the government program for the elderly, has targeted readmissions as a way of improving hospital care. Under the 2010 Patient Protection and Affordable Care Act, known as Obamacare, thousands of hospitals have had their Medicare reimbursement cut because of high rates of patients returning soon after their discharge.

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