HHS Introduces “Bundled Payments for Care Improvement”
by Jeff Porter
On August 23, 2011, the Department of Health and Human Services (“HHS”) announced a new initiative to improve quality of care for patients while hospitalized. The initiative, called “Bundled Payments for Care Improvement,” will focus on aligning payment for services over an episode of care rather than focusing on individual services. Under the initiative, the Centers for Medicare and Medicaid Services will bundle payments for hospitals, physicians and other clinicians associated with a particular episode of care such as a heart bypass or hip replacement rather than pay for each individual service associated with the procedure. It is hoped the new initiative will foster a team approach to patient care that will reduce overall costs and improve outcomes for the patient. Organizations interested in participating in the initiative must submit a Letter of Intent by September 22, 2011, for the first phase of the program.
Read the press release announcing the initiative and more information on the Bundled Payment initiative.
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