An alternative way to measure inpatient care quality is by using the readmission rate of hospitals for patients diagnosed with specific conditions during their initial (index) visits. It is expected that if patients are receiving proper care at the facility for those specific conditions, the readmission rate will be at or below an acceptable rate. Rates higher than a baseline rate are subject to lower reimbursements. Accordingly, the HRR program started in 2012. It is a program that provides incentive payments (up to 3% of their prospective inpatient payments from Medicare) to hospitals that reduce their inpatient 30-day readmission rates for the following conditions:

• Acute myocardial infarction (AMI)
• Heart failure (HF)
• Pneumonia (PN)
• Chronic obstructive pulmonary disease (COPD)
• Total hip/knee arthoplasty (replacement) (THA/TKA)
• Coronary artery bypass graft surgery (CABG)