June 2008 The Medicare Payment Advisory Commission recommends reducing payments for avoidable readmissions.
March 2010 The Patient Protection and Affordable Care Act directs the CMS to set up a program to financially penalize hospitals with high 30- day readmission rates.
October 2012 The CMS begins docking about 2,200 hospitals up to 1% of their Medicare payments for high rates of patients readmitted within 30 days of a hospitalization for heart attack, heart failure or pneumonia.
October 2013 Maximum penalty will rise to 2% of Medicare receipts.
October 2014 Maximum penalty will rise to 3% of Medicare receipts. The CMS plans to add readmissions for chronic obstructive pulmonary disease and hip and knee arthroplasty.