Blue Cross Blue Shield of Michigan will collaborate with 64 surgeons across seven Michigan health systems on a new bundled payment initiative.
Under the program, participating providers will be paid a single fee for a knee or hip replacement surgery. The fee will cover the procedure, as well as 90 days of post-surgery treatment, including physical therapy.
BCBSM estimates an episode of care for knee and hip replacements can cost between $28,000 to $55,000, on average. The new program aims to "improve outcomes of hip and knee replacement procedures," while shaving 10 percent off the surgeries' average costs.
This is BCBSM's first bundled payment program. Participants include 64 surgeons who treat patients with in-network BCBSM employee-sponsored health plans at the following systems:
- Henry Ford Health System (Detroit)
- Huron Valley Sinai Hospital (Commerce Township)
- Michigan Orthopaedic Surgeons (Southfield)
- Oakland Regional Hospital (Southfield)
- St. Joseph Mercy Brighton Health Center
- Saint Joseph Mercy Livingston Hospital
- TRIARQ Health (Troy)