CFOs may work readmission penalties into bottom line

Weighing absorbing rather than avoiding cost
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Some hospital chief financial officers are taking a "play-or-pay" perspective regarding whether to pay penalties imposed by the Centers for Medicare & Medicaid Services for patient readmissions, former hospital CEO Kevin Shrake wrote in a Hospital Impact blog post last week. The CFOs believe it may be more financially feasible to simply work in the cost of the penalties in their bottom lines rather than trying to avoid them by investing in improving the quality of care. However, Shrake objects to the approach. Blog post