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Innovations : hscrc-admission-readmission-program

Supportive Financing Mechanisms

The HSCRC Admission Readmission Revenue (ARR) for Hospitals:

The Admission-Readmission Revenue (ARR) program entails three-year voluntary, alternative bundled payment arrangements for certain hospitals whose rates are established by the Maryland Health Services Cost Review Commission (HSCRC) under Maryland’s all payer Medicare waiver. For the next three years, the Commission will set rates for participating hospitals on a charge per episode (CPE) basis which takes into account admission and readmission charges from the previous year. Thirty-day all-cause readmissions are used for determining the CPE target. If a hospital has reduced costs for readmissions compared to the targeted amount, it will accrue savings to its balance sheet. If the hospitals readmission costs exceed the targeted amount, the rate target will be negatively adjusted in the next year. Literature indicates that all cause readmissions could be reduced by 25%-50%, which would reduce hospital costs by $200 - 300 million per year.

For a complete description of the ARR pilot project, Click Here.

Integrated programs that use ARR:

  • The CHF Initiative run by Anne Arundel Health System


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