Talk with healthcare experts and providers who have succeeded in reducing avoidable hospital readmissions and they will tell you that it takes the full range of healthcare settings. They will also tell you that it takes a collaboration of financial and clinical leaders to understand and prepare for the impact of the Centers for Medicare & Medicaid Services (CMS) regulations that will soon go into effect. The Patient Protection and Affordable Care Act (PPACA) enables the CMS to reduce Medicare payments to hospitals based on their 30-day readmission rates, according to the CMS. Though the human and societal benefits of reducing avoidable readmissions are hard to dispute, the financial fallout of the regulations remains largely unknown. For many providers, reducing readmissions also translates into reductions in revenue. Hospitals need to know where they are now and where they could be heading in terms of the financial impact of readmission rates.