July is being sought as the month for starting new reimbursement program by the state, by Maryland hospitals, that takes the concept of not paying for hospital-acquired adverse medical conditions to a much larger scale. It has been named as the Maryland Hospital Acquired Conditions, or MHAC, program. The state is pressing providers to demonstrate that they are reducing complication rates on 52 potentially preventable conditions, otherwise they risk losing a percentage of their reimbursements. Bonus will be awarded to hospitals that perform well. The Maryland Health Services Cost Review Commission, the rate-setting authority in the state, estimated that in 2008 complications throughout the state’s 47 hospitals cost US$522 million.

The state had assessed complication rates for each hospital using a software tool developed by 3M Co. that defines the 52 complications, in past nine months. In May, the hospitals were given their reports

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