CMS Announces Bundled Payments Initiative

April 11, 2013
The Centers for Medicare & Medicaid Services (CMS) has announced the Bundled Payments for Care Improvement initiative, which will include more than 500 participating organizations. The initiative, linked to the Affordable Care Act, will have these organizations test how bundling payments for episodes of care can result in more coordinated care for beneficiaries and lower costs for Medicare.

The Centers for Medicare & Medicaid Services (CMS) has announced the Bundled Payments for Care Improvement initiative, which will include more than 500 participating organizations. The initiative, linked to the Affordable Care Act, will have these organizations test how bundling payments for episodes of care can result in more coordinated care for beneficiaries and lower costs for Medicare.

“The objective of this initiative is to improve the quality of healthcare delivery for Medicare beneficiaries, while reducing program expenditures, by aligning the financial incentives of all providers,” acting CMS administrator Marilyn Tavenner said in a statement.

The initiative will include four models of bundling payments, and it will be dependent on the type of care providers involved and the services included in the bundle. CMS will bundle payments for services beneficiaries during an episode of care, encouraging hospitals, physicians, post-acute facilities, and other providers to work together to improve health outcomes and lower costs. Providers participating in the initiative will provide CMS a discount from expected payments for the episode of care, and work with partners to reduce readmissions, duplicative care, and complications to lower costs through improvement.

In addition, CMS announced more than 100 participants partnering with over 400 provider organizations, have begun to receive new data on care patterns. They’re also engaged in shared learning in how to improve care.

Sponsored Recommendations

Improving Workplace Safety and Patient Care in Behavioral Health

In 2023, Vail Health enhanced safety in their behavioral health clinic, but the impact went beyond their expectations. Read their case study to see how prioritizing workplace ...

Transforming Hospital Capacity Through Smarter Patient Progression Strategies

Helping patients move seamlessly through every stage of their care, from admission to discharge, is critical to ensuring patient safety, improving outcomes, and optimizing capacity...

Beyond the AI Buzz: How Clinicians Can Leverage AI for Value-Based Success

Watch on-demand to explore the impact of implementing AI in primary care settings to reduce burnout and thrive in value-based care. Including practical takeaways on driving clinician...

Building the Connected Hospital: Bridging Operational Gaps Through Technology

Join industry leaders to explore how advanced technologies like RFID, AI, EMR, and ERP systems are transforming hospitals into connected ecosystems that enhance efficiency, streamline...