Centers for Medicare & Medicaid Services: Bundled Payment Demonstrations

The Centers for Medicare & Medicaid Services (CMS) has announced the first recipients of grant funds to demonstrate the feasibility of bundled payments to improve health care quality and reduce costs.  Information on these new Bundled Payments for Care Initiatives is now available on the CMS Center for Innovation’s redesigned website.

CMS will be funding four models of bundled payments: Model 1 will be based on retrospective acute care hospital stays only (3 demonstrations); Model 2 will include retrospective acute and post-acute care (55 demonstrations); Model 3 is only retrospective post-acute care (14 demonstrations); and Model 4 will be based on prospective acute care hospital stays (37 demonstrations).    CMS also continues work on physician-hospital collaborations to implement bundled payments in a consortium of 12 hospitals.

In addition, the redesigned website has information on CMS’ past work on bundling payments for acute care episodes under Medicare (5 three-year demonstrations) and hospital gainsharing (2 three-year demonstrations).