Dive Brief:
- In July, the Centers for Medicare and Medicaid Services (CMS) added new contracts to the agency's bundled payment program.
- At the same time, about two-thirds of providers that were initially enrolled in the program dropped out.
- Just last month, CMS proposed making bundled payments a requirement for hip replacement surgeries in some markets next year.
Dive Insight:
Almost 7,000 providers initially signed up for formal reviews to see if there was a possibility of entering into bundled payment contracts with Medicare. Of those who signed up, 2,100 completed their reviews and signed contracts to receive bundle payments for common conditions, including heart failure, heart attack, stroke and joint replacement.
Bundled payments are just one of several new payment models for which federal officials are pushing. According to Modern Healthcare, at least 30% of Medicare payments for care that isn't managed will be under similar contracts by the end of 2016, and by 2018, that number will increase to 50%.
The CMS proposal to begin requiring bundled payments shows the agency's commitment to its new payment models.