Management of CareQuestion 1813 of 2368

A hospital has a higher rate of client readmissions for heart failure than comparable hospitals. Which financial consequence is the hospital most likely to face?

  1. A 3% reduction in its Medicare payments
  2. A 3% increase in its Medicare payments
  3. Loss of all Medicaid funding for one year
  4. A required fee paid by each readmitted client
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Correct answer: A 3% reduction in its Medicare payments

The Hospital Readmissions Reduction Program penalizes hospitals with poor readmission performance by cutting Medicare payments by 3%.

Source: Nursing Management and Professional Concepts, 2nd edition (Open RN, Chippewa Valley Technical College, 2024), Health Care Economics: HOSPITAL READMISSIONS REDUCTION PROGRAM. Licensed under CC BY 4.0.

Practice the topic "Management of Care"

Questions last reviewed: 18 October 2026