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CMS selects providers for bundled payment initiative

January 31, 2013

More than 500 organizations will participate in the Bundled Payments for Care Improvement initiative, the Centers for Medicare & Medicaid Services announced today. The Medicare demonstration, announced in August 2011, will bundle payment for an episode of inpatient and/or post-acute care in an effort to better coordinate care for patients and reduce costs. Today's announcement includes 32 organizations that will begin testing bundled payments for acute care hospital stays as early as April 2013 under Model 1 of the program. It also includes participants for Phase 1 of Models 2, 3, and 4, which will run through July 2013. Phase 1 organizations will receive new data from CMS on care patterns and engage in shared learning in how to improve care. They generally are expected to participate in Phase 2, in which approved participants opt to take on financial risk for episodes of care starting in July 2013. In coming weeks, CMS plans to announce a second opportunity for providers to participate in Model 1, with an anticipated start date of early 2014.