Although fee-for-service remnants the leading approach of the rendered healthcare services in the United States, multiple local and regional proposals have pursued to demonstrate other payment systems can do better, and at the same time achieving higher quality and better overall outcomes with greater efficiency by controlling overall cost. Bundled payment is one such alternative. Bundled payment is the concept of paying a fixed dollar amount to cover a set of services, as an episode of care over a defined period. Because of the fixed price, providers are encouraged to hold variable costs down; yet BP programs usually require providers to satisfy a minimum set of quality metrics in order to receive payment, thus ensuring providers do not skimp
