NEW YORK, Sept 22 (Reuters) - CVS Health's ( CVS ) Aetna

insurance arm will expand a nascent program pairing members in

its privately run Medicare plans with nurses - an effort the

company says will reduce hospital readmissions, which are costly

and can be detrimental to patient health.

For patients on the Medicare Advantage plans for people 65

and older, the program might assign Aetna-employed nurses to

those who are released from hospitals or transitioning into a

nursing facility or who have disabilities to navigate additional

needs. Services provided range from coordinating in-home care to

ensuring transportation to follow-up appointments.

"Our goal is to literally have a nurse at the bedside with

that member, with that family, beginning to think through what

their care journey should look like," said Dr. Ben Kornitzer,

chief medical officer at Aetna.

CVS's move comes after the Centers for Medicare & Medicaid

Services in July finalized a rule that includes Medicare

Advantage members in calculations for readmission penalties

applied to hospitals, effective in the fiscal year 2027.

The American Hospital Association has protested that this

inclusion would wrongfully penalize hospitals for negative

outcomes associated with coverage delays and denials.

The government insurance agency recalculates performance

each year and flags hospitals with higher-than-expected

readmissions over 30 days for some conditions, before reducing

payments by up to 3% of discharge fees paid.

For the fiscal year 2023, 75% of hospitals subject to the

rule faced penalties, according to an analysis of government

data by research firm the Advisory Board.

A spokesperson for CVS Health ( CVS ) said the program is meant to

improve patient health, which would benefit Aetna and providers,

adding the company will push for similar programs moving

forward.

CVS said it will implement the program in 10 hospitals by

the end of the year, including hospitals AdventHealth Shawnee

Mission in Kansas City, Kan., Houston Methodist in Texas, and

WakeMed Health & Hospitals, in Raleigh, N.C.

"Sometimes the health plan is more helpful in giving

discharge instructions, because they have a vested interest in

keeping the patient better," said Sadhna Paralkar, a senior vice

president at health consultancy Segal.