Bundled Payment:
The next example of shared risk contracting is bundled pricing payments. In this concept of shared risk contracting, instead of multiple fees for professional and facilities, there is one single fee that covers it all (Kongstvedt, 2013).
The idea behind the bundled pricing is intended to be simple. The main goal of this type of shared risk contracting is to create a partnership with many different providers. This will not only organize the services between multiple providers but it will also aid with costs. It will also greatly reduce overutilization, which is an ongoing problem in today’s healthcare system in the United States.
In this type of shared risk contracting, the risk is shared between both the providers and the …show more content…
One advantage is that bundled payments create an equal partnership between both the payers and the providers. The concept of bundled pricing allows both the payers and the providers to create a shared plan that will not only increase the efficiency of the operation but it will also increase the quality of health care provided and the coordination of each episodic care. Since over utilization is a current problem in today’s day and age, this concept of shared risk contracting helps reduce over utilization. This is done because doctors and medical professionals become more aware of costs. They only make referrals when it is an absolutely necessary. Providers also use the resources they currently have more efficiently. This is done by not replicating any services that have already been provided. So it is changes health care from a volume based concept to a value based concept. Now under the value based concept, providers focus on providing effective, affordable care to patients. Another advantage of the bundled pricing system is that this system allows more transparency in the delivery of care. This means that that since the charges of the care provided are “advertised”, patients are able to go to multiple different providers and compare the prices. Along it being beneficial to the patients, it is quite beneficial to the providers as well. Providers also have an incentive to work more efficiently and to the best of their abilities because they know that the patients/customers have an option to go to another
The next example of shared risk contracting is bundled pricing payments. In this concept of shared risk contracting, instead of multiple fees for professional and facilities, there is one single fee that covers it all (Kongstvedt, 2013).
The idea behind the bundled pricing is intended to be simple. The main goal of this type of shared risk contracting is to create a partnership with many different providers. This will not only organize the services between multiple providers but it will also aid with costs. It will also greatly reduce overutilization, which is an ongoing problem in today’s healthcare system in the United States.
In this type of shared risk contracting, the risk is shared between both the providers and the …show more content…
One advantage is that bundled payments create an equal partnership between both the payers and the providers. The concept of bundled pricing allows both the payers and the providers to create a shared plan that will not only increase the efficiency of the operation but it will also increase the quality of health care provided and the coordination of each episodic care. Since over utilization is a current problem in today’s day and age, this concept of shared risk contracting helps reduce over utilization. This is done because doctors and medical professionals become more aware of costs. They only make referrals when it is an absolutely necessary. Providers also use the resources they currently have more efficiently. This is done by not replicating any services that have already been provided. So it is changes health care from a volume based concept to a value based concept. Now under the value based concept, providers focus on providing effective, affordable care to patients. Another advantage of the bundled pricing system is that this system allows more transparency in the delivery of care. This means that that since the charges of the care provided are “advertised”, patients are able to go to multiple different providers and compare the prices. Along it being beneficial to the patients, it is quite beneficial to the providers as well. Providers also have an incentive to work more efficiently and to the best of their abilities because they know that the patients/customers have an option to go to another