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Provider Manual

Potentially Preventable Readmission (PPR) program

Last Updated on July 05, 2022
  • DHS began the Potentially Preventable Readmission Incentive Program for BadgerCare Plus with the 2018-2019 contract year. The goal of the program is to reduce potentially preventable hospital readmissions for Wisconsin Medicaid members, increase positive patient outcomes and improve lives. Objectives relate to improved discharge planning, better coordination of care across sites of service and other improvements in the delivery of care.
  • The program is based on a tiered improvement model to award incentives to HMOs, based on the HMO's performance in the baseline year. Targets to earn the incentive are established in alignment with the chart below.

Table: PPR Reduction Targets

Proportion of Potential Incentive Share that is earned by the HMO

Baseline Tier (based on ABR)

Tier 1 - High performance HMOs

Tier 2 - Middle performance HMOs

Tier 3 - Low performance HMOs


5% or more

7% or more

10% or more


3% to 4.9%

4% to 6.9%

7% to 9.9%


1% to 2.9%

2% to 3.9%

4% to 6.9%


0.25% to 0.9%

0.5% to 1.9%

1.5% to 3.9%

  • The State will calculate and share PPR results using 3M PPR software. These reports will be distributed to HMOs quarterly. Security Health Plan will share provider-specific results with hospitals after that time.
  •  If Security Health Plan earns an incentive based on the above model, it will share incentive dollars with network hospitals using a similar model for those hospitals with more than 50 qualifying admissions. The more admissions a facility has, the higher the possible return, depending on performance.
  •  More information can be found under the Wisconsin Medicaid Hospital Quality Program section here: ForwardHealth Resources for Hospital Providers. General PPR information that applies to all programs is also included in this section and includes Navigant’s PPR Manual, example reports and PPR Chain examples.