- From The Editor-In-Chief
- Entry Point: New Success Metrics
- Safety-Net Hospitals And ACA Payments
- Obstetric Complication Rates
- Bundled Payments Fail In California
- Premiums' Impact On CHIP Enrollment
- US Black-White Life Expectancy Gap
- Diabetic Amputations By Income
- Showing MRI Prices Caused Competition
- Health Spending Growth And Recession
- US Behavioral Health Care Data
- PDUFA And Black Box Warnings
- US Tobacco Users And Health Coverage
Bundled Payment Fails To Gain A Foothold In California: The Experience Of The IHA Bundled Payment Demonstration
Abstract
To determine whether bundled payment could be an effective payment model for California, the Integrated Healthcare Association convened a group of stakeholders (health plans, hospitals, ambulatory surgery centers, physician organizations, and vendors) to develop, through a consensus process, the methods and means of implementing bundled payment. In spite of a high level of enthusiasm and effort, the pilot did not succeed in its goal to implement bundled payment for orthopedic procedures across multiple payers and hospital-physician partners. An evaluation of the pilot documented a number of barriers, such as administrative burden, state regulatory uncertainty, and disagreements about bundle definition and assumption of risk. Ultimately, few contracts were signed, which resulted in insufficient volume to test hypotheses about the impact of bundled payment on quality and costs. Although bundled payment failed to gain a foothold in California, the evaluation provides lessons for future bundled payment initiatives.
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