News & Events


Mandatory Bundle Gets Early Positive Results

By: Rich Daly

DATE: September 14, 2018

SOURCE: https://www.hfma.org/Content.aspx?id=61880

DataGen was recently featured on www.hfma.org.

EARLY SUCCESS—SIMILAR TO RESULTS OF A PREVIOUS VOLUNTARY BUNDLED PAYMENT PROGRAM—SURPRISED REVIEWERS AND COULD SPUR MORE MANDATORY MODELS, AN ADVISER SAYS.

Hospitals in Medicare’s first mandatory bundled payment model succeeded in cutting Medicare gross spending in their first year, according to a new analysis. The results come as Trump administration executives say they plan to introduce more mandatory models.

The Comprehensive Care for Joint Replacement (CJR) model required most hospitals in 67 geographic areas to accept a bundled payment for all services involved in joint replacement and 60 days of post-op care.

Although hospitals and advocacy groups were nervous about requiring facilities without experience in bundled payment to participate, participating hospitals’ average Medicare payments for the episodes decreased 3.3 percent more than payments to hospitals in a control group. That reduction occurred over just nine months, since CJR launched April 1, 2016, and the first year ended with CY16.

 

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