How rehospitalizations are hurting Medicare

By Robert Pozen and Cathy Schoen in the Boston Globe Opinion Section August 14, 2008 GETTING Medicare costs under control is no easy job. Congress recently overrode a scheduled 11 percent cut in Medicare's physician fees by freezing them for the rest of 2008 with a slight raise in 2009. But the program's finances will continue to worsen as baby boomers retire. Avoiding deep cuts in physician fees from 2010 onward will require a $20 billion fix every year for the following decade. But there is a straightforward way to pay for half of this fix. Medicare spends vast sums on hospital care for patients readmitted within 30 days of their previous stay in a hospital. These readmissions are often avoidable. And if Congress focuses on reducing the need for rehospitalization in areas where the practice is most common, Medicare could save many billions of dollars. Robert Pozen is a trustee of the Commonwealth Fund. Cathy Schoen is senior vice president of the Commonwealth Fund. Related Materials MedPac Report to the Congress: Promoting Greater Efficiency in Medicare