The Current State of Evidence on Bundled Payments

A review of the evidence shows that bundled payments for surgical procedures can generate savings without adversely affecting patient outcomes. Less is known about the effect of bundled payments for chronic medical conditions, but early evidence suggests that cost and quality improvements may be small or non-existent. There is little evidence that bundles reduce access and equity, but continued monitoring is required.

INTRODUCTION

Paying physicians and health institutions using bundled payments has become increasingly popular since the passage of comprehensive health reform in 2010. Once limited to small pilot projects between individual payers and health systems, bundled payments have now become a central strategy for the Centers for Medicare and Medicaid Services (CMS) to increase quality while controlling...