What Are Bundled Payment and How Are They Being Used

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The Answer is Bundled payments are a payment method based on the costs expected to be incurred in the provision of a clinically defined episode of care, adjusted for severity and complexity of a patient's condition. Bundled payments are viewed as a blend of fee-for-service and capitation payments, discouraging the provision of unnecessary care and encouraging the coordination of care across providers, but not penalizing providers who care for sicker patients in their practice. The goal of bundled payment is to reduce fragmentation of care thereby improving quality and reducing costs. The use of bundled payments should encourage providers within the system to reorganize how care is delivered so that it is coordinated and responsive to the needs of patients.

What Are Bundled Payment and How Are They Being Used

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