This year, over 2,600 hospitals will be losing a combined $420million in funding as a result of highreadmission rates due to a PPACA policy introduced four yearsago that fines hospitals with readmission rates above a certainlevel.

But some hospitals, such as teaching hospitals, say that thepolicy is unfair because their patients are typically poorer andsicker than those admitted by others. A new study from Harvardappears to validate this complaint.

The researchers looked at 29 different characteristics among agroup of over 8,000 Medicare beneficiaries who were hospitalizedbetween 2009 and 2012. The study sought to examine characteristicsthat current Medicare risk-adjustment models do not include, suchas socioeconomic factors like education level.

The study found a strong link between some characteristics andhospital readmission rates. For example, education level isstrongly correlated with the probability of chronic conditions,such as diabetes. Hospitals serving populations with high rates ofsuch diseases are naturally going to have more patients frequentlyreturning.

Speaking to the Washington Post, Michael McWilliams, one of thestudy authors, said that patients at hospitals with highreadmission rates were, “less mobile, had more difficulty withactivities of daily living, more chronic conditions, less education,lower income, lower assets, and the list goes on andon.”

The Centers for Medicare and Medicaid Services is emphasizingthat it is sensitive to charges that the policy iscounter-productive and is working to find more effective ways toencourage good care.

“We will continue to work with all stakeholders to seek feasibleways to encourage hospitals to reduce hospital readmissions whileaddressing any unintended consequences, particularly for thosehospitals serving dual-eligible andlow-income beneficiaries,” said Patrick Conway, CMS' chief medicalofficer, in a statement to the Post.