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The Affordable Care Act is accelerating a shift away from the standard fee-for-service model and toward value-based payments in the Medicare program. Episode-based bundled payments have emerged in this context as an alternative reimbursement model. By paying groups of providers (ie, hospitals, physicians, and post–acute care facilities) a single target price for all services across a defined episode of care, many believe that bundled payments will create stronger incentives to eliminate unnecessary spending while maintaining high quality of care.
Tsai TC, Miller DC. Bundling Payments for Episodes of Surgical Care. JAMA Surg. 2015;150(9):905-906. doi:10.1001/jamasurg.2015.1236