CMS is accepting applications for Bundled Payment Program

The CMS Innovation Center is seeking applications for four broadly defined models of care as part of its Bundled Payments for Care Improvement initiative, according to a press release. 

The press release states that the four models of care are:

  • Model  1 - The episode of care would be defined as the inpatient stay in the general acute care hospital.
  • Model  2 - The episode of care would include the inpatient stay and post-acute care and would end, at the applicant’s option, either a minimum of 30 or 90 days after discharge.
  • Model  3 - The episode of care would begin at discharge from the inpatient stay and would end no sooner than 30 days after discharge.
  • Model  4 - Under Model 4, CMS would make a single, prospectively determined bundled payment to the hospital that would encompass all services furnished during the inpatient stay by the hospital, physicians and other practitioners.

Models 1 – 3 are retrospective models, where CMS and providers would set a target payment amount for a defined episode of care.  Model 4 is a prospective model, where the bundle would be prospectively determined.

Click here for full details on each of the models, as well as a side by side comparison.

(Sources:  The Advisory Board Daily Briefing,, August 23, 2011; Centers for Medicare and Medicaid Services,, August 23, 2011)