With the increasing cost of medical care, the US health system have been working tirelessly to find ways to reduce the cost and at the same time improve quality of care. Current US medical payment methods have continue to fail to support the system, which is apparent through the cost of care. For so many years the most dominant method for physician payment in the US is the fee-for-service method. In this method, payers reimburse for all services; meaning payment is based on the quantity of care and not the quality of care. Policy makers are aware that the US healthcare system can't survive on this method, as a result new payment reforms have been developed throughout the year. In this paper, I will explore the history of Bundle Payment for
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Compared to the fee-for-service system where each provider who treat a patient across an episode of care is paid separately, which takes efforts, resources and time, leading to miss management. Bundle payments will do just the opposite, instead of paying individually, a fixed payment amount will be paid to providers. In this system everyone benefits, if everyone works together to improve quality and efficiency, they get a share in the savings. Incentives such as this will drive providers to want to collaborate and provide better quality of care. Other beneficiaries in the systems are patients and even insurers. It will help bring down cost for insurers and even employers. Since the payment is fixed rate, providers cannot bill extra for additional cost. Bundle payment encourages providers to take on financial responsibilities for outcomes, which will result in them using resources wisely because there is incentive involved in saving resources. Also because it's a fix payment amount, providers will not be given additional payment for unneeded or extra treatment. Not only will the bundle payment help improve quality of care, it will also have tremendous impact on cutting cost of care which is one the most significant aspect of why I believe this payment model is a good system. Risk involved in participating in bundle payments are; financial risk, and operational risk. These risk can be eliminated when incentives are aligned with well integrated process. Implementation of bundle payment will prove to be the best system in improving care, reducing cost and coordinating
Compared to the fee-for-service system where each provider who treat a patient across an episode of care is paid separately, which takes efforts, resources and time, leading to miss management. Bundle payments will do just the opposite, instead of paying individually, a fixed payment amount will be paid to providers. In this system everyone benefits, if everyone works together to improve quality and efficiency, they get a share in the savings. Incentives such as this will drive providers to want to collaborate and provide better quality of care. Other beneficiaries in the systems are patients and even insurers. It will help bring down cost for insurers and even employers. Since the payment is fixed rate, providers cannot bill extra for additional cost. Bundle payment encourages providers to take on financial responsibilities for outcomes, which will result in them using resources wisely because there is incentive involved in saving resources. Also because it's a fix payment amount, providers will not be given additional payment for unneeded or extra treatment. Not only will the bundle payment help improve quality of care, it will also have tremendous impact on cutting cost of care which is one the most significant aspect of why I believe this payment model is a good system. Risk involved in participating in bundle payments are; financial risk, and operational risk. These risk can be eliminated when incentives are aligned with well integrated process. Implementation of bundle payment will prove to be the best system in improving care, reducing cost and coordinating