Assessment of the Effect of Adjustment for Patient Characteristics on Hospital Readmission Rates

In several pay-for-performance programs, Medicare ties payments to readmission rates but accounts only for a limited set of patient characteristics-and no measures of social risk-when assessing performance of health care providers (clinicians, practices, hospitals, or other organizations). Debate continues over whether accounting for social risk would mitigate inappropriate penalties or would establish lower standards of care for disadvantaged patients if they are served by lower-quality providers.