Bundled payments: the outlook for 2020

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A recent article by ECG Management Consultants analyzes the bundled payment market in 2020. 

Editor's Note: This article originally appeared on ECG's website

The bundled payment market expanded significantly in 2019 and will continue to do so in 2020. Growth was primarily driven by industry pressure to deliver value-based care through alternative payment models (APMs). The most recent numbers show that over 35% of US healthcare reimbursements flowed through APMs—a 52% increase from three years earlier. This evolution paved the way for bundled payments, a relatively low barrier-to-entry APM model. For payers and providers lacking experience in such value-based payment models, “episodes of care” are less complex compared to their ACO and full-capitation counterparts, which has contributed significantly to bundled payments’ rise in popularity.

Growth was also driven by the launch of Bundled Payments for Care Improvement (BPCI) Advanced, a voluntary CMS program that allowed hospitals and physician groups to select specific episodes of care for participation. Notably, the program offered participation in 35 clinical episodes that spanned 8 service lines and included medical issues, chronic conditions, and surgical procedures. To date, the program counts 1,010 hospitals and 1,031 physician groups as participants. The second cohort of BPCI Advanced began on January 1, 2020. Click here to continue>>


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