Effect of bundled payments on total joint costs

Editor's Note

In this study, Medicare’s Comprehensive Care for Joint Replacement bundled payment model resulted in a decrease of $5,577 in total spending per episode.

Most hospital savings came from implants and supplies, and most postacute care savings came from decreased use of inpatient rehabilitation and skilled nursing facility care.

A total of 3,942 patients having joint replacement surgery in the Baptist Health System were included in the analysis.

Question What are the drivers of reductions in Medicare payments and hospital savings (ie, increased margin) in bundled payment for joint replacement surgeries? Findings In this observational study of 3942 patients who received joint replacement surgery, there was a decrease of $5577 (20.8%) in total spending per episode.