Hospital readmissions penalties will increase, as will the size of the typical penalty, in the coming year.
Beginning in FY 2026, the proportion of hospitals that will be penalized at least one percent for excessive readmissions under the Centers for Medicare & Medicaid Services’ Hospital Readmissions Reduction Program will rise from seven percent of all hospitals to eight percent. The number of hospitals penalized less than one percent will decline.
Hospitals that care for the highest proportions of dually eligible Medicare/Medicaid patients will see their penalties increase slightly.
The penalties levied in FY 2026 will reflect hospital performance between July of 2021 and June of 2024.
Learn more from the Becker’s Hospital Review article “CMS: More hospitals to face higher readmission penalties in 2026.”