What does the term "bundled payment" refer to in CMS reimbursement methodologies?

The term "bundled payment" in CMS reimbursement methodologies refers to a consolidated payment for multiple services provided during a single episode of care. This approach is designed to streamline reimbursement processes and encourage healthcare providers to deliver efficient, coordinated care. Rather than being reimbursed for each individual service provided (as in fee-for-service models), bundled payments cover a range of services associated with a particular treatment or condition, often encompassing pre- and post-care, which promotes better patient outcomes and cost efficiency.

This model incentivizes providers to focus on quality of care and patient satisfaction, as they must manage resources prudently within a fixed payment. By emphasizing the entire episode of care rather than discrete services, bundled payments aim to create a more holistic approach to healthcare delivery, which can ultimately lead to improved value and reduced overall healthcare spending.