Monthly Management Newsletter - March 2014

The fee-for-service system of payment for health care services is widely thought to be one of the major culprits in driving up U.S. health care costs. This system not only encourages volume but rewards poor quality and provides little incentive for care coordination. Bundled payment, where providers are reimbursed a set fee for an episode of care, would break down current payment silos and reward providers for improving the coordination, quality and efficiency of care. While evidence of the impact of bundled payment is limited to date, there is growing interest from both payers and providers in . . .
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