Medicare Bundled Payment Model Saves Money, Leading to A New Mandatory Payment Model

A new Medicare bundled payment model is coming down the pike. Will it impact your practice?

Medicare Bundled Payment Model Saves Money, Leading to A New Mandatory Payment Model

What

The Bundled Payments for Care Improvement (BPCI) Advanced Model was a value-based care initiative launched by the CMS Innovation Center (CMMI) in 2018. It focuses on bundled payments, which are defined as single payments made to covers all services provided during a single episode of care. The model covers 34 clinical episodes, including Double Joint Replacement of the Lower Extremity (“double” here referring to same-day bilateral joint replacements) and Fractures of the Femur and Hip or Pelvis. CMS released a report providing a comprehensive assessment of the BPCI Advanced Model's performance, finding that it led to net savings of $465 million in 2021. As a result of the positive experience, CMMI finalized a different payment model that is based on the BPCI Advanced Model called Transforming Episode Accountability Model (TEAM).  

When