Hospitals in pursuit of excellence

Successfully Implementing Bundled Payment Models

Bundled payments are becoming more attractive to the health care industry as providers learn that they can improve patient care while decreasing its cost. CMS commissioned a bundled payment model called the Acute Care Episode demonstration only three years ago, which since has gained traction and earned positive marks from participating providers. One of them, Hillcrest Medical Center in Tulsa, Okla., has reported savings of $1.59 million on cardiac and orthopedic services from the adjusted payments.

One of the secrets to a successful bundled payment model is a close alignment between physicians and hospitals. "Physician alignment is a key factor in our ACE demonstration," says Nancy Harrison, the ACE project director for Ardent Health Services, the owner of Hillcrest Medical Center.