How do bundled payments improve care delivery?

Bundled payments improve care delivery primarily by incentivizing providers to deliver better care at lower costs. This payment model involves a single, predetermined payment that covers all services related to a specific treatment or condition over a defined period. By consolidating payments for multiple services, providers are encouraged to coordinate care efficiently and prioritize high-quality outcomes while managing costs.

This approach contrasts with traditional fee-for-service models, where providers are reimbursed for each individual service, potentially leading to fragmented care and greater overall costs. The bundled payment system pushes providers to collaborate more closely, focusing on the patient's entire experience and health outcomes rather than just specific procedures or treatments. It aligns financial incentives with patient-centered care, fostering innovation and improvements in care delivery.

In summary, bundled payments are designed to streamline care processes and reduce unnecessary expenses while promoting effective treatment strategies that enhance patient outcomes.