C-Suite Cheat Sheet: Hospital-Acquired Condition Reduction Program

Educational Briefing for Suppliers and Service Providers

Executive Summary

The Hospital-Acquired Conditions (HAC) Reduction Program is a mandatory pay-for-performance program mandated by the Affordable Care Act. The program aims to improve patient safety and reduce the incidence of common but avoidable conditions that patients can contract during hospital stays. The program measures hospital performance on key patient safety measures and issues payment adjustments based on how the hospital score compares to the national average. The quartile of hospitals with the worst patient safety performance face a 1% penalty on the inpatient Medicare revenue.

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