Medical Staff

Helpful or hurtful? Proposed bundled payments make waves

Medical Staff Briefing, October 1, 2009

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How will the bundled payment be split between the hospital and hospitalists?
To accept bundled payments, each hospital and its physicians will need to create entities to accept and distribute payments from Medicare. Although this entity doesn’t have to be a physician-hospital organization (PHO), it is certainly the most likely candidate, says Richard A. Sheff, MD, CMSL, chairman and executive director of The Greeley Company, a division of HCPro, Inc. in Marblehead, MA.
Each facility participating in the ACE demonstration project has created its own system for distributing funds, according to Felix Aguirre, MD, vice president of medical affairs and a hospitalist with IPC The Hospitalist Company, which provides services at Baptist Health System in San Antonio, TX, one of the facilities participating in the ACE demonstration project, which are referred to as value-based care centers.
At the conclusion of the demonstration projects, CMS will review each methodology and make recommendations for future value-based care centers.

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