Edge 2026
Healthcare Finance & Clinical Operations Pure Edge Computation

Hospital Readmissions Reduction Program (HRRP) Penalty Calculator

Models statutory CMS payment adjustments for hospital chief financial officers and clinical quality directors.

Formula: Penalty% = min(3.0%, (Weighted ERR - 1.0) * 0.85); DRG Reduction = Base DRG * Penalty%

Model Parameters

$
ratio
ratio
ratio
ratio

Outputs & Underwriting Summary

Calculation Status
COMPUTED
Verified Model
CMS Penalty Percentage
2.89%
Weighted ERR: 1.034
Annual DRG Payment Reduction
$1,300,500.00
Net Retained: $43,699,500.00
Weighted Excess Readmission Ratio of 1.034 triggers a 2.89% CMS payment adjustment factor. This reduces inpatient base operating DRG reimbursement by $1,300,500.00, leaving $43,699,500.00 retained.