Designing and implementing bundled payment program for total hips

Editor's Note

A bundled payment program for total hip replacement was associated with similar total costs, lower posthospital costs, shorter length of stay, and similar or higher quality hospital care, in this study.

Compared to controls, bundled payment patients had similar length of stay (3.0 vs 3.4 days), higher rates of discharge to home or home with services than to a rehabilitation facility (87% vs 63%), similar adjusted median total payments ($22,272 vs $22,576), lower median posthospital payments ($704 vs $1,121), and were more likely to receive guideline-consistent care (99% vs 95%).

Background: Bundled payments, also known as episode-based payments, are intended to contain health care costs and promote quality. In 2011 a bundled payment pilot program for total hip replacement was implemented by an integrated health care delivery system in conjunction with a commercial health plan subsidiary.