What is the hallmark of bundled payment systems?

The hallmark of bundled payment systems is that one payment covers all services in an episode of care. This model consolidates various costs associated with a patient’s treatment into a single payment, which simplifies billing and enhances efficiency in care delivery. The bundled payment arrangement encourages healthcare providers to coordinate care across different services and specialties, as they must manage costs within the allotted payment while ensuring quality outcomes for the patient.

By bundles encompassing a range of services, healthcare providers are incentivized to work collaboratively, thereby reducing duplication of services and enhancing patient experience. This approach contrasts with traditional fee-for-service models, where payments are made separately for individual services, which can lead to fragmented care and potentially increase costs. Overall, the focus of bundled payment systems is on encouraging value-based care, where the emphasis is on the quality of care provided rather than the quantity of services delivered.