CMS finalizes joint replacement pricing extension

Healthcare DIVE April 30, 2021
Nick Paul Taylor

Dive Brief:

• CMS has finalized a three-year extension to a joint replacement bundled payment model that has driven down the cost of procedures in recent years.
• The next three-year phase will start on Oct. 1, later than originally planned due to COVID-19 but still earlier than AdvaMed pushed for in feedback to the original draft.
• Cowen analysts expect orthopaedic device manufacturers to avoid pricing pressure from the initiative and go on to mitigate future downsides by selling more products to each customer.

Dive Insight:

CMS introduced the Comprehensive Care for Joint Replacement Model in 2016. Participants in the initiative receive a flat set of payments for each episode of care. Procedure costs fell at hospitals paid via CJR,...

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