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Bundled Payments for Joint Replacements Saved Medicare Money — with No Quality Declines
Skilled Nursing News January 6, 2020
A major bundled payment program for hip and knee replacement episodes has produced savings for the government without corresponding declines in quality, according to a new study — confirming the central motive behind a program that has drawn the ire of post-acute operators.
The Bundled Payments for Care Improvement model (BPCI) seeks to both decrease Medicare expenditures and streamline reimbursements by providing one set amount for all providers involved in an episode of care — which may involve major losses for providers should costs per episode go over the expected reimbursement.
Based on three years’ worth of results, patients who entered a BPCI-participating hospital ended up with total episodic savings of $377, or a drop of 1.6% compared to non-participating...
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