---
title: "Medicare policy on hospital-acquired conditions. | Sutter Health"
description: "Medicare stopped reimbursing hospitals for 8 avoidable hospital-acquired conditions. We modeled the financial impact of this policy on six such conditions."
url: "https://www.sutterhealth.org/research/publications/medicare-policy-on-hospital-acquired-conditions-1055312578"
---

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# Medicare's policy not to pay for treating hospital-acquired conditions: the impact.

McNair PD, Luft HS, & Bindman AB.

_Health Aff (Millwood). 28(5):1485-93. doi: 10.1377/hlthaff.28.5.1485._

2009-10-01

## Abstract

In 2008 Medicare stopped reimbursing hospitals for treating eight avoidable hospital-acquired conditions.  
  
Using 2006 California data, we modeled the financial impact of this policy on six such conditions. Hospital-acquired conditions were present in 0.11 percent of acute inpatient Medicare discharges; only 3 percent of these were affected by the policy. Payment reductions were negligible (0.001 percent, or $0.1 million-equivalent to $1.1 million nationwide) and are unlikely to encourage providers to improve quality.  
  
Options to strengthen the incentives include further payment modifications for hospital-acquired conditions or expanding the hospital-acquired condition policy to exclude payment for consequences, additional procedures, and readmissions.

[PubMed abstract](http://www.ncbi.nlm.nih.gov/pubmed/19738267)

## Research topics

-   [Health Policy](https://www.sutterhealth.org/research-search-results?query=%22%5C%22Health+Policy%5C%22%22)

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