Lowe’s and Cleveland Clinic experiment with bundled payment

In March, Lowe’s and Cleveland Clinic announced an agreement where Lowe’s employees who need heart surgery can be flown to Cleveland for the surgery at the Cleveland Clinic, who in turn, pays Lowe’s a bundled payment for all services, according to MedCity News. 

The arrangement calls for Lowe’s to waive the $500 deductible, pay for airfare, hotel and living expenses for eligible employees who opt into the program.

Both Lowe’s and Cleveland Clinic are thought to benefit from the arrangement - Lowe's employees get access high quality care, which should lower long-term costs, as well as get employees back to work quickly.  The arrangement helps the Cleveland Clinic expand its out-of-state patient base.

(Sources: MedCity News, http://www.medcitynews.com, October 19, 2010; The Advisory Board Daily Briefing, http://advisory.com, October 26, 2010)