The Reporting Hospital Quality Data for Annual Payment Update (RHQDAPU) initiative requires hospitals to submit data for quality measures (30 in 2009) for health conditions common among people with Medicare, and which typically result in hospitalization.

Hospitals that do not participate in the RHQDAPU initiative will receive a reduction in their Medicare Annual Payment Update for the following fiscal year.

The initiative was initially developed as a result of the Medicare Prescription Drug, Improvement and Modernization Act of 2003. This program builds on the ongoing voluntary Hospital Quality Initiative. The hospital quality of care information gathered through the initiative is available to consumers on the Hospital Compare website.

For additional information, see the CMS QualityNet website.