Large Orthopedic Practice Pursues Bundled Payments With Private Payers

The Centers for Advanced Orthopaedics (CAO) a large orthopedic private practice group in Maryland and neighboring states, is negotiating bundled payment arrangements with private payers for seven surgical procedures: total hip replacement, total knee replacement, partial knee replacement, knee scope, cervical spine fusion, anterior cruciate ligament procedures, and rotator cuff procedures. By the end of 2017, CAO anticipates finalizing an agreement with Capital Blue Cross and other major payors.

Under the bundled payment system, CAO and payers will agree on the cost of the seven procedures, based on the historical costs of care. The bundles will extend from the pre . . .