Bundled Payments, also known as Episode-Based Payments, is a healthcare payment model that involves a single, comprehensive payment covering all services provided during a patient’s entire course of treatment for a specific condition, over a defined period. Unlike traditional fee-for-service models where providers are paid separately for each individual service, bundled payments encourage collaboration among healthcare providers to deliver quality care while managing costs effectively.
Bundled Payments are essential to transforming the healthcare landscape because they not only incentivize high-quality patient care but also drive the reduction of healthcare costs. By aligning provider incentives with patient outcomes, these payment structures promote efficiency and patient-centric care, transforming fragmented processes into a coordinated effort tailored to patient needs.
Furthermore, Bundled Payments play a critical role in risk management and cost control. By encouraging providers to operate within set financial parameters for the entire treatment episode, healthcare systems are motivated to avoid unnecessary procedures and prevent complications, ultimately improving healthcare delivery and patient satisfaction.