Overview
The MHAC program aims to improve patient care and hospital decision-making by putting two percent (2%) of inpatient hospital revenue at risk (maximum penalty/reward) based on performance for 14 identified potentially preventable complications (PPCs). PPCs are harmful events that develop after the patient is admitted to the hospital and may result from processes of care and treatment rather than from the natural progression of the underlying illness. PPCs can lead to poor patient outcomes, including longer hospital stays, permanent harm, and death, as well as increased costs. Examples of PPCs include an accidental laceration during a procedure, improper administration of medication, and hospital-acquired pneumonia.
The MHAC Program is similar to the federal Medicare HAC Reduction Program (HACRP) but:
- Is all-payer
- Uses a Maryland-specific list of PPC measures, and
- Does not relatively rank hospitals in assigning financial rewards and penalties.
The MHAC Program is based on a system developed by 3M Health Information Systems (3M) to identify PPCs using present-on-admission codes available in claims data. See the current rate year policy for additional information on the specific PPCs included in the payment program and how performance is converted to hospital revenue adjustments.
For detailed information via webinar on HSCRC Quality Initiatives, please visit the
Quality Overview web page.
Key MHAC Policy Documents
