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Bundled Payment for Bundles of Joy

By Lola Butcher January 30, 2018

High Caesarean section rates. Too many babies in the NICU. There are indications that maternity and newborn care in this country is far from ideal. Some payers are betting that bundled payments for obstetricians will create incentives to make changes and reduce low-value care.

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Transforming bundled payments into episodes of care can give hospitals, payers an edge

By Tom Sullivan December 05, 201710:58 AM

Hospitals are living in two worlds today: Planning for next-generation value-based care while praying that patient volumes increase under fee-for-service.

The belief that alternative models will transform the way care is delivered and paid for is already impacting many facets of hospital and payer investments, IT not least among those.

In the fee-for-service world physicians are generally unaware of costs. Providers already embracing value-based payment models, however, are empowering doctors to be conductors who control expenses to ensure hard-earned dollars are spent with patient results in mind.

And, no, the Centers for Medicare and Medicaid Services’ revelation that it is cancelling mandatory cardiac and hip fracture bundled payments is not slowing these frontrunners down.

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