Home Health & Hospice

Bundled Payment Initiative Launched

Homecare Insider, September 5, 2011

On August 23, 2011, the U.S. Department of Health and Human Services announced a new initiative to help improve healthcare and align payments for patients across episodes of care (from their hospital stay until after discharge). Doctors, hospitals, and other health care providers can apply to participate in the program, Bundled Payments for Care Improvement Initiative, which is made possible by the Affordable Care Act (ACA).

Currently, providers are paid separately for their services and this initiative will bundle care and payments for patients who receive treatment for specific medical conditions. The Request for Applications (RFA) allows for providers to have the flexibility to determine which episodes and services will be bundled. The initiative is divided into four models:

  • Model one defines the episode of care as the hospital stay only
  • Model two defines the episode of care as the hospital stay plus post-acute care associated with that stay
  • Model three as post-acute care, post-discharge only
  • Model four would encompass a bundled payment for all services furnished during an inpatient by the hospital, physicians, and other practitioners

Organizations who are interested in applying to participate in this initiative must submit a letter of intent no later than September 22 for model one and November 4 for models two, three, and four.

For more information on this program a fact sheet is now available.