The Federal Role in Reducing Hospital-Acquired Conditions: Are Medicare Reimbursement Incentives Enough?

A new Medicare rule that will take effect October 2008 will prevent hospitals from receiving payment for the costs of treating certain hospitalacquired infections and conditions. This Note argues that the rule is unlikely to reduce the frequency of hospital-acquired conditions. The rule is based on the erroneous assumption that distorted financial incentives are responsible for the high rate of hospital-acquired conditions, and ignores the fact that hospitals lack the resources and data to tackle the systemic problems that endanger patients. This misguided approach could render the new CMS rule ineffectual, or worse, result in unintended consequences that undermine patient care. To significantly contribute to a reduction in hospital-acquired conditions, the federal government should increase funding for the Agency for Healthcare Research and Quality to develop proven strategies that hospitals can implement to reduce infection.