AHA Report: Bundled Payments Could Reduce Spending, Spur Quality Improvement

The American Hospital Association has released the first in a series of AHA Research Synthesis Reports, which discusses the potential implications of bundled payments and addresses key areas for consideration moving forward.

According to the report, current bundled payment models test in the public and private sectors have yielded promising results, even though the models are focused on specific conditions — such as those with defined timeframes, defined services and isolated episodes — and in specific care settings — such as integrated delivery systems and academic medical centers.

The AHA reports that in spite of these limitations, current literature on bundled payments have led to three major indications:

  • Bundled payment could potentially reduce spending on an episode of care. In one model, Medicare saved $42.3 million on coronary artery bypass graft surgery at seven participating hospitals, according to the report.
  • Providers' readiness to participate in bundled payment programs varies.
  • Bundled payment can spur quality improvement, especially when paired with defined quality metrics.

The report also noted that before bundled payment can be widely implemented, the following key questions need to be addressed:
  • To which conditions should bundled payments be applied?
  • What providers and services should be included in the bundled payment?
  • How can provider accountability be determined?
  • What should be the timeframe of a bundled payment?
  • What capabilities are needed for an organization to administer a bundled payment?
  • How should payments be set?
  • How should the bundled payment be risk-adjusted?
  • What data are needed to support bundled payment?

Read the AHA Research Synthesis Report on bundled payments (pdf).

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars