The Strengths and Weaknesses of Bundled Payments

The federal government continues to make greater use of bundled payments in the delivery of Medicare services as part of its continued push toward paying for quality rather than quantity of care.

But why?

Bundled payments offer a number of benefits:  they can offer incentives to manage costs more effectively, encourage collaboration among different types of providers, and more.

On the other hand, bundled payments pose some challenges.  They can be complicated to define and track for some types of care; they may inhibit some types of care coordination; and they could create incentives for providers to pursue serving only the healthiest patients, possibly leaving less desirable, less profitable patients with fewer care options.

In a new commentary,  the Commonwealth Fund takes a closer look at “The Promise and Pitfalls of Bundled Payments.”  Find that report here.

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