The Centers for Medicare and Medicaid Services (CMS) has announced the selection of over 500 providers to participate in the Bundled Payments for Care Improvement initiative. This initiative, a component of the Affordable Care Act (ACA), is designed to test how bundling payments for episodes of care can result in more coordinated care for beneficiaries and lower costs for Medicare.
The Bundled Payments for Care Improvement Initiative currently includes four models for bundling payments which vary based on the type of health care provider and the services included in the bundle. Organizations of providers participating in the initiative will agree to provide CMS a discount from expected payments for the episode of care, and then the provider partners will work together to reduce readmissions, duplicative care, and complications in order to lower costs.
More information, including a list of the selected providers, is available on the CMS website.
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