Reducing avoidable readmissions is an obvious clinical win, but some providers have expressed concern over how it impacts their bottom lines. Many assert that CMS' Hospital Readmissions Reduction Program (HRRP) penalties are not severe enough to replace the profit (or "contribution margin") lost by avoiding a follow-up procedure.

Is this an incentive program without teeth, or simply one of health care's wonky urban legends? Let's find out.