Question

Bundled payment refers to which of the following?

1) Paying care providers for each service they provide, but putting all the payment together at the end of a month in a "bundle"
2) Paying care providers based on a risk-adjusted formula that provides a "bundle" of capitated payments each month
3) Paying care providers in cash by putting it in a brown envelope and leaving it under the sink in the restroom
4) Paying care providers based on expected costs for clinically defined episodes of care
5) Paying care providers from multiple sources, bundled together into a single payment

Answer 1

Bundled payment refers to a method of reimbursement where multiple services related to a specific episode of care are grouped together and paid as a single payment based on expected costs for clinically defined episodes of care.

Step-by-step explanation:

The correct answer is option 4) Paying care providers based on expected costs for clinically defined episodes of care.

Bundled payment refers to a method of reimbursement where multiple services related to a specific episode of care are grouped together and paid as a single payment. This payment model aims to incentivize cost-effective and coordinated care. With bundled payment, care providers are paid based on the expected costs for clinically defined episodes of care, such as joint replacement or maternity care.

For example, in a bundled payment for a hip replacement, the payment would cover all the services related to the surgery, including pre-operative consultations, surgery, post-operative care, and rehabilitation. This approach encourages providers to work together to deliver high-quality care and control costs.