CMS selects hospitals for bundled physician-hospital payment demo

The Centers for Medicare & Medicaid Services selected five hospitals to participate in a three-year bundled payment demonstration, which the agency plans to launch early this year. The hospitals are Baptist Health System in San Antonio; Oklahoma Heart Hospital in Oklahoma City; Exempla Saint Joseph Hospital in Denver; Hillcrest Medical Center in Tulsa, OK; and Lovelace Health System in Albuquerque, NM.


The Acute Care Episode (ACE) Demonstration will provide global payments for acute care episodes within Medicare fee-for-service (FFS). The focus is on 9 orthopedic and 28 cardiovascular inpatient procedures. ACE Demonstration goals are to: improve quality for FFS Medicare beneficiaries, produce savings for providers, beneficiaries, and Medicare using market-based mechanisms, improve price and quality transparency for improved decision making, and increase collaboration among providers.


For more on the demonstration, visit the CMS Web site.


(SOURCE: AHA News Now,, January 7, 2009; CMS website release, December 2, 2008)