Bundled Payment

Bundled payment (BP) is defined as a single aggregate payment for all health care services for clinically defined episodes of care. Some results suggest that transitioning from a fee-for-service model to BP resulted in a <10% decline in spending and a 5% to 15% decrease in the utilization of services in the bundle. However, future BPs will need to account for how individual providers will be compensated for their services, and acceptance of BP as a viable health care payment model will depend on the ability of payers and providers to collaborate in a new way to address several operational and implementation challenges