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Bundled Payment Program Presents Home Health Opportunity

Posted on Thursday, April 14, 2016 12:52 PM

A new mandatory payment system for joint replacements requires participation from more than half of the hospitals to avoid risk of losing money. According to research and data analytics, more than 67% of hospitals in the 67 regions are expected to face penalties.

CJR presented a new approach last July to payment reform from CMS. The plan explains that the hospitals in affected regions will be responsible for Medicare spending on hip and knee replacement episodes of care, including hospital and post-hospital costs. The new feature is the mandatory aspect of the program. “The mandatory programs are CMS’ attempt to bring the remaining hospitals into a value-based payment world,” said Josh Seidman, senior vice president at Avalere Health.

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