For-profit hospitals correlated with higher readmission rates, study finds

Patients who receive care in a for-profit hospital are more likely to be readmitted than those who receive care in non-profit or public hospitals, according to a new study conducted by University of Illinois at Chicago researchers.

The study analyzed readmission data obtained from the national Hospital Readmission Reduction Program from 2012 to 2015 for six major and common diseases: heart attack, heart failure, coronary artery bypass surgery, pneumonia, chronic obstructive pulmonary disease and total hip or knee replacement surgery.

Using provider identifiers verified with a Centers for Medicaid and Medicare Services' report, the researchers compared readmission rates and categorized the hospitals by type: public, for-profit or nonprofit.

They found that across all six major diseases there was a statistically significant difference in readmission rates based on type. Hospitals with fewer readmissions than expected, based on a government ratio accounting for disease severity, were primarily public and nonprofit. Hospitals with more readmissions than expected were dominated by for-profit hospitals.

In each category, for-profit hospitals had the highest mean and median readmission ratios. Due to this, it stands to reason that these hospitals suffer the financial repercussions, since CMS levies reimbursement penalties against hospitals that underperform on certain quality indicators, including 30-day readmission rates.

The researchers said that while there is a correlation between hospital type and readmission rates, the data does not provide any clues as to why for-profit hospitals fare worse than nonprofit or public hospitals.

Possible reasons mentioned in the analysis include a relative lack of resources at for-profit hospitals due to higher taxes and a focus on maximizing profit that may steer funds away from investment in staff or medical technology.

Twitter: @JELagasse
Email the writer: jeff.lagasse@himssmedia.com