Are Bundled Payments Good for Surgery?
It’s easy to see why bundled payments appeal to payers and employers. The popular value-based model that pays providers a flat price for all of the care they’ll deliver before, during and 90 days after surgery reduces spending and improves patient outcomes. But are bundled payments a good deal for surgeons and surgical facilities? That depends on how well you negotiate the bundled payment and, as you can see in the table below, how much distance you put between your set fees and your variable costs. Either way, as the push continues to pay for surgery on the basis of quality over quantity, bundled payments have emerged as an increasingly popular model — especially in orthopedics.
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