Toward a More Complete Picture of Readmission-Decreasing Initiatives

Readmissions are common and costly. This study examines the effectiveness of two initiatives known to help reduce readmissions. Using data from the American Hospital Association, the Census Bureau, and the Center for Medicare and Medicaid Services’ Hospital Compare database, we found that a higher quality of hospital care does not reduce, but in fact increases readmission rates. Although health information sharing decreases readmission rates, the effect is statistically significant only among the lowest-quality hospitals, not among mid- and high-quality hospitals. The results of our study have important policy implications for providers and hospital administrators with respect to efforts to reduce readmission rates.