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Medicare Penalizes Nearly 1,500 Hospitals for Poor Quality Medicare Penalizes Nearly 1,500 Hospitals for Poor Quality Medicare Penalizes Nearly 1,500 Hospitals for Poor Quality Medicare Penalizes Nearly...

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Health Care

Medicare Penalizes Nearly 1,500 Hospitals for Poor Quality

The rating system to determine Medicare payments is one effort to pay physicians based on performance.

Hospitals are rated based on how they rank compared with other facilities, improvement from previous years, patient reviewss and medical outcomes. Those ratings determine whether hospitals will gain or lose pay.(Popova Valeriya/Shutterstock.com)

photo of Clara Ritger
November 15, 2013

In the second year of the Medicare program to pay physicians based on performance, the government will issue more penalties than bonuses to hospitals nationwide.

High scores on two dozen quality measurements grants 1,231 hospitals higher payments in 2014, and poor performance has lowered the compensation for another 1,451.

NPR reports that hospital executives have given the program mixed reviews. The initiative is a piece of the Affordable Care Act reforms.

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