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Member Research and Reports

Member Research and Reports

Maryland Analyzes Effects of Innovative Payment Mechanisms on Hospital Readmissions

An innovative payment program in the state of Maryland may help improve health care efficiency and reduce hospital readmissions, but no effects on readmission rates have been shown after the first 18 months of implementation, according to researchers at the University of Maryland School of Public Health. Department of Health Services Administration assistant professors Dr. Karoline Mortensen and Dr. Jie Chen, along with Mr. Chad Perman of Health Management Associates, compared the performance of eight rural Maryland hospitals participating in the Total Patient Revenue (TPR) system, which aims to create positive financial incentives to reduce unnecessary admissions, to the performance of 30 control hospitals in the state using a traditional, primarily fee-for-service system. Their analysis has been published in Healthcare.