Bundled payment models’ downside risk sparks provider dropouts, GAO finds

Many hospitals that participate in the CMS’ voluntary bundled payment models drop out after they are forced to take on downside risk, according to a new U.S. Government Accountability Office report.

The report, which was released Tuesday, found that providers are motivated to join bundled payment models because of the potential for financial gain but they usually end their participation in the model when they have to enter downside risk, and financial gain isn’t guaranteed. Just 39% of hospitals that participated in the second model of Bundled Payments for Care Improvement continued in the model after they faced downside risk.

The report was assembled by the GAO in response to a request from Sen. Ron Wyden (D-Ore.),...