Private payer bundled payment arrangements

In 2015, the Centers for Medicare & Medicaid Services (CMS) began a mandatory bundling initiative to cover all services for hip and knee replacements. Broader expansion of alternative payment and delivery models has recently been introduced in the private sector. Bundled payments incentivize providers to appropriately reduce spending without compromising quality of care. Establishing market size, competitive pricing, and care coordination are integral to ensure the viability of a bundled payment model. The purpose of this study is to address key considerations for providers who plan to create an effective bundle in the private sector.