Bundled care payment models

In response to rising national healthcare spending, the Medicare program has proposed episode-based payments models as an alternative to the traditional fee-for-service program. A “bundled payment” is a single reimbursement provided for all aspects of care for a single diagnosis or procedure. This reimbursement model is argued to improve care delivery by accomplishing the following goals: (1) Improve coordination between hospital and physicians as well as between different care teams. (2) Improve efficiency of care thereby reducing spending. (3) Incentivize quality improvement. Post-implementation analyses of the bundled payment pilot models have demonstrated positive financial results, though the appropriate inclusion criteria for providers and optimal payment calculations remain under investigation.