What are Bundled Payments?

Bundled payments are a form of alternative payment model that are designed to move away from fee-for-service reimbursement toward value-based care. In a bundled payment model, providers are accountable for a single, comprehensive payment for an episode of care.

The bundled payment model is designed to encourage greater efficiency and coordination in the overall management of patients, improving care quality and outcomes, and reducing costs.

Bundled payments give providers an opportunity to share in savings when costs are kept below the bundle’s target price; providers may also assume risk for costs that go above the target price.