Moody's: Canceling bundles would be credit positive for hospitals

CMS' proposal to cancel major Medicare bundled payment initiatives would be credit positive for most nonprofit hospitals, according to Moody's Investors Service.

On Aug. 15, CMS released a proposed rule to cancel mandatory bundled payment initiatives for heart attacks, bypass surgeries and hip and femur fractures. Canceling the initiatives would be credit positive for hospitals because it would give them more time to prepare for risk-bearing reimbursement models, according to Moody's.

"Bundled programs were part of CMS' goal to roll out more aggressive value-based initiatives that give providers financial incentives to provide the lowest cost but still high quality care," said Moody's. "Cancelling cardiac and orthopedic bundling expansion gives hospitals more time to build clinically integrated networks to help coordinate and manage costs, and learn how to operate under risk-based contracts."

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