Measuring the Success of Bundled Pricing Models

Cost drivers and challenges facing orthopaedics

Ross Taylor, MD, MBA

Because bundled pricing involves a single payment to provider organizations for a surgical service such as joint replacement, there are no contingency payments for prolonged hospital stays, hospital readmissions, or carve-out payments for implants. This forces providers to consider the factors that determine the cost of providing care (cost drivers) during an orthopaedic episode.

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