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McNair PD et al. – 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 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.


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