Section 3008 of the Patient Protection and Affordable Care Act (ACA) established the Hospital-Acquired Condition (HAC) Reduction Program to provide an incentive for hospitals to reduce HACs. Effective beginning Fiscal Year (FY) 2015 (discharges beginning on October 1, 2014), the HAC Reduction Program requires the Secretary of the Department of Health and Human Services to adjust payments to applicable hospitals that rank in the worst-performing quartile of all subsection (d) hospitals with respect to risk-adjusted HAC quality measures. These hospitals will have their payments reduced to 99 percent of what would otherwise have been paid for such discharges. In the FY 2016 HAC Reduction Program, hospitals with a Total HAC Score greater than 6.7500 are subject to a payment reduction.

The following HAC Reduction Program related information for each hospital is available publicly on Hospital Compare: the scores for each measure used in the program, Domain 1 and Domain 2 scores, and Total HAC Score. Background information regarding the HAC Reduction Program measures, scoring methodology, review and corrections process, and hospital specific reports can be found on the QualityNet webpage. Please refer to the Related Links section below.

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