Which alternative payment model involves a single payment covering multiple providers' services?

The concept of bundled payment is designed to streamline the payment process for a specific episode of care by providing a single payment that encompasses all services rendered by multiple healthcare providers. This model encourages collaboration among providers, as they share the financial responsibility and the rewards for the quality and efficiency of care delivered to the patient. By receiving a predetermined amount for the entirety of care related to a particular condition or treatment, healthcare providers are incentivized to coordinate their services effectively, ultimately aiming for improved patient outcomes and cost savings.

Capitation, on the other hand, refers to a payment arrangement where providers are paid a set amount per patient over a specific time period, regardless of the number of services provided. This differs from bundled payments, which focus on a specific treatment or episode rather than a standard payment for ongoing care. Fee-for-service involves billing for each individual service provided to the patient, promoting volume over value, which is contrary to the goals of bundled payments. Shared savings models incentivize providers to reduce costs below a set benchmark but do not inherently involve a single payment for multiple services. Ultimately, bundled payments stand out as the model that effectively consolidates multiple services into one comprehensive payment structure.