What are "bundled payments"?

Bundled payments refer to a payment model that consolidates multiple services or episodes of care into a single financial arrangement. This type of payment structure is designed to incentivize healthcare providers to work collaboratively to deliver comprehensive services while managing costs effectively. By offering a pre-determined amount for a set of services related to a specific treatment or condition, bundled payments encourage efficiency and quality of care, as providers are motivated to avoid unnecessary services and focus on patient outcomes.

This model contrasts with other payment methodologies, such as fee-for-service, where providers would be paid separately for each individual service rendered. In the context of bundled payments, a single payment might cover everything involved in a specific procedure or treatment course, including pre-operative, operative, and post-operative services. This approach aligns financial incentives for providers with the goal of improving the overall patient experience and leading to more coordinated care.

The other options reflect elements of healthcare reimbursement that focus on individual services, patient satisfaction metrics, or specific settings like outpatient services, but they do not encompass the comprehensive, integrated nature of bundled payments as described.