Feb. 7—More than 500 healthcare organizations will participate in a government initiative that will test how bundled payments for episodes of care can result in more coordinated care for beneficiaries and lower costs.

Through the Bundled Payments for Care Improvement initiative, these organizations will enter into payment arrangements with the Centers for Medicare & Medicaid Services (CMS) that include financial and performance accountability for episodes of care.

The initiative includes four models of bundling payments, varying by the types of healthcare providers involved and the services included in the bundle. The first model, which will test bundled payments for acute care hospital stays, will be initiated in April and will include participation from 32 providers. 

Participating providers—hospitals, physicians, post-acute facilities, and more—will provide CMS a discount from expected payments for the episode of care and will work with CMS to reduce readmissions, avoid duplicative care, and improve outcomes while lowering costs, according to a release.

Publication Date: Thursday, February 07, 2013