H&HN October 3, 2016
Bundled payments are here to stay: arguably, they’re the most formidable result of health reform. It’s time for some straight talk about bundles.
Nothing in health reform is more substantive to system transformation than the bundled payment effort being advanced by the Centers for Medicare & Medicaid Services. Like accountable care organizations, such as those in the Medicare Shared Savings Program, a bundled payment program carries the potential for shared savings with Medicare, but also financial risks for provider organizations that choose to participate. And like the avoidable readmissions and value-based purchasing programs, bundled payments are being introduced as mandatory for selected hospitals and health systems.
The concept of bundled payments is simple. Bundled payment programs reduce care fragmentation and...