Hospital-Acquired Conditions (HAC) and Never Events

Billing and Reimbursement
Policy Number: RP-I-006

Last Updated: March 5, 2024

  • Never Events are defined as adverse events or errors in medical care that are clearly identifiable, preventable and serious in their consequences for patients. Examples of Never Events include: 
    • Performance of wrong procedure (operation) on correct patient 
    • Performance of procedure (operation) on patient not scheduled for surgery
    • Performance of correct procedure (operation) on wrong side of body parts 
    • Leaving sponge, gauze or surgical instrument in body after surgery   
  • The terms “HAC” and “Never Events” are not used interchangeably.  
    • HAC is defined by the Centers for Medicare & Medicaid Services (CMS)
  • POA stands for present on admission.   
  • Acute care inpatient facilities include all acute general hospitals, children’s hospitals, critical access hospitals, long-term acute care hospitals and acute rehabs. 
  • Skilled Nursing Facilities (SNF) and Veteran’s Administration Medical Centers (VAMC) are exempt from this policy. 
  • All participating acute care facilities are not permitted to receive or retain reimbursement for inpatient services related to Never Events. 
  • All participating acute care facilities are required to hold members harmless for any inpatient services related to Never Events.   
  • Blue Cross and Blue Shield of Nebraska (BCBSNE) follows CMS’ definition of Never Events/POA/HAC: CMS.gov
  • Post-payment audits are generally conducted by BCBSNE for selected medical records. Please refer to the Provider Audit and Special Investigations Unit policy.