Bundled payments becoming more popular

Bundling payments to hospitals and doctors for episodes of care are becoming more popular as a way to save costs, increase provider accountability and improve care.

According to an article in Modern Healthcare, programs that have tried using bundled payments, or paying a fixed amount for an episode of care, have helped hospitals, patients and doctors to save money.

The Obama administration also hopes it can help save Medicare $17 billion over a decade.

(Sources: Kaiser Daily Health Policy Report, http://kaiserhealthnews.org, May 4, 2010; Modern Healthcare, http://modernhealthcare.com, May 3, 2010)