Hospital readmissions have been identified as a potential source for Medicare savings. Although some readmissions may be medically necessary, experts have noted that reducing readmissions rates could reduce costs and aid in improving quality of care. (For more information about how reducing readmissions can improve quality, visit our
section on Improving Quality) Under the Affordable Care Act, several provisions aim to reduce preventable readmissions by lowering payments for hospitals with high, preventable readmission rates, and by providing resources for hospitals with high readmission rates.