Bundled Payments Cut Medicare Post-Acute Care Episodes Costs By 27%

Bundled payments cut the cost of Medicare post-acute care (PAC) episodes by 27% among beneficiaries who had lower extremity joint replacement at Baptist Health System (BHS). Average PAC spending declined $2,443.12 per case, largely from reductions in inpatient rehabilitation and skilled nursing facility spending but only when bundles included financial responsibility for PAC.

These findings were reported in “Cost of Joint Replacement Using Bundled Payment Models,” by Amol S. Navathe, M.D., Ph.D.; Andrea B. Troxel, ScD; Joshua M. Liao, M.D.; et al. The researchers conducted an observational study of 3,942 Medicare beneficiaries with . . .