This article points out some of the problems with penalizing hospitals for readmission of patients. One thing I've seen my clients experience personally is the phenomenon of being "held for observation" as an outpatient resulting in the Medicare patient being stuck with 20% outpatient coinsurance for everything that happens - which can be thousands of dollars in billing. In their zeal to cut back on "short stays" in hospitals and "readmissions" -hospitals are hesitant to admit anyone as an inpatient. As the article points out, they aren't clear on what parameters they are being measured on in the first place - they find out when they get the penalty.
You can read the complete article here:
Researcher Says CMS Proposal Would Penalize More Than 2600 Hospitals
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