Health Affairs · 2014 · 53 citations · 7 references
Public AffairsHealth PolicyOrthopedic SurgeryHealth Care FinancingHealth Services ResearchIntegrated CareHealthcare Cost AnalysisProvider ContractingProvider Payment PolicyReimbursement ComplianceReimbursement ImpactReimbursement PolicyBundled Payment ModelsBundled Payment StrategyPaymentPayment Reform EvaluationPhysician Administrative BurdenPhysician Payment SystemsQuality-based ContractingState Regulatory Authority
To determine whether bundled payment could be an effective payment model for California, the Integrated Healthcare Association convened a group of stakeholders (health plans, hospitals, ambulatory surgery centers, physician organizations, and vendors) to develop, through a consensus process, the methods and means of implementing bundled payment. In spite of a high level of enthusiasm and effort, the pilot did not succeed in its goal to implement bundled payment for orthopedic procedures across multiple payers and hospital-physician partners. An evaluation of the pilot documented a number of barriers, such as administrative burden, state regulatory uncertainty, and disagreements about bundle definition and assumption of risk. Ultimately, few contracts were signed, which resulted in insufficient volume to test hypotheses about the impact of bundled payment on quality and costs. Although bundled payment failed to gain a foothold in California, the evaluation provides lessons for future bundled payment initiatives.
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