Competitively Bid Bundled Rates Only Methodology That Cut Medicare Costs

A recent review of 10 Medicare disease management and care coordination and value-based purchasing demonstrations that have taken place since 1990 found that only one program that utilized competitively bid bundled rates and a pay-for-performance methodology produced cost savings. In all other programs the study examined, the costs of administering the disease management and care coordination programs negated any per-beneficiary cost savings and researchers found that non-bundled payment value-based purchasing designs had little effect on Medicare spending. The one program that was able to demonstrate savings was a Medicare Participating Heart Bypass Center Demonstration . . .