Medicare will nearly triple the number of hospitals and medical groups that are candidates to test bundled payments, one of the health reform law’s efforts to revamp healthcare financing.
The CMS announced it will add roughly 4,100 providers to about 2,400 already exploring the possible use of bundled payments for some or all of four dozen medical conditions and procedures, such as diabetes, joint replacements and pacemaker implants. Providers have to apply to become candidates.
These roughly 6,500 candidates will analyze Medicare spending data to decide whether or not to enter into bundled-payment contracts, which must reduce Medicare costs by 2% to 3.5% before providers are rewarded, with some exceptions.
Medicare launched the payment bundles in January 2013 under the healthcare reform law So far, the CMS has signed 243 providers to bundled-payment contracts, which began in October and January.
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