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Understanding Bundled Payments
Health Leaders Media

Although 2011 may go down in the history books as the year of the accountable care organization, there’s also been a tremendous amount of payment innovation on a different level—aligning incentives and optimizing the delivery of “episodes of care.” Bundled (sometimes referred to as episode-based) payment structures are a means to that end.

A bundled payment can be thought of as a budget. For a given episode of care, a group of “at-risk” providers agrees to work together to ensure that care is coordinated and that the total cost of an episode is within the budget.

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