Alternatives to traditional fee-for-service (FFS) reimbursement have gained attention as financial pressures mount and as many recognize how FFS may not provide incentives for efficient care. The recent Centers for Medicare and Medicaid Innovations (CMMI) Bundled Payments for Care Improvement Initiative is a prominent example, as are private payor contracts.
This healthcare reform briefing paper provides an overview of bundled payments and discusses recent developments, as well as an analysis of considerations in contracting for bundled payments.