bundled payment

(redirected from episode-of-care payment)

bundled payment

A single comprehensive payment made to healthcare providers—hospitals and physicians—for a group of related services, based on the expected costs for a clinically defined episode of care.
Segen's Medical Dictionary. © 2012 Farlex, Inc. All rights reserved.
References in periodicals archive ?
Harold Miller, executive director of the Center for Healthcare Quality and Payment Reform, suggested an episode-of-care payment plan through which hospitals and physicians jointly charge one price for all services included in a hospitalization.
What drives variation in episode-of-care payments for primary TKA?
Few people were talking about bundled or episode-of-care payments in 2006 when Geisinger Health System started accepting flat-rate payment for a predetermined set of services to address a specific medical situation.
Additionally many states, payers and other groups are participating in experiments including bundled payments, episode-of-care payments, gain sharing demonstration projects, the Prometheus payment project, and pay-for-performance initiatives.
The organizations may combine other health care initiatives--such as medical homes and electronic medical records--with new ways of paying for health care, such as global and episode-of-care payments, which bill for an entire injury or disease rather than each exam, test or treatment.
Episode-of-Care Payments--As stated in the 2008 Medicare hospital outpatient final rule, the agency is seriously considering ways to consolidate outpatient payments into larger, more comprehensive, episode-of-care payments. In fact, CMS already applies a single composite payment for selected groups of services that routinely are performed together and represent a comprehensive service.
Unlike the ACO model, episode-of-care payments do not discourage expensive procedures; they encourage physicians and hospitals to work together to achieve good outcomes at low cost.
Other initiatives include episode-of-care payments for joint surgery and soon CABG surgery and establishment of accountable care organizations (ACO).