That's the goal, but that's not how it actually works out in practice - look at the details of how the penalties are levied, and you'll see why.

If they were implemented perfectly, that would be true. Or if all payers used a bundled payment system, that would be true. But neither of those are the case (at least not now).

(An easy way to see this is to see that there is a cap for the maximum penalty - so if the total amount made on readmissions is larger than this cap, the hospital would still make money overall[0].)

[0] Of course, nothing can be simple (that would be too easy!), so the actual way that these are calculated is even more convoluted - take a look if you're interested, but don't say I didn't warn you. :)