A recent announcement came from the Centers for Medicare and Medicaid Innovations which signaled the end of fee-for-service from physicians called bundle payments. As we all know, if Medicare does this, all commercial payers will quickly follow in their footsteps.
According to Deirdre Baggot Bundle payments are predicated to be effective when it comes to effective decision-making. That being said, healthcare organizations will need to completely understand what it will take the make these new bundled payments really work. Here are four facts about bundle payments that need to be considered. View at ideamensch.com to know more.
#1: Only provide patients with what they need
For many, it can be a tough balancing act to provide only the needed procedures and test that the patient needs while still following the request of the patient and their family. With bundle payments it is necessary to have the discipline to provide nothing the patient doesn’t need as part of the new fee-for-value commitment.
#2: There Is Zero Volume Play With Bundled Payments
A perk that does not exist in the bundle payment pilot expansion is the fact that the Centers for Medicare and Medicaid Services will no longer offer its applicants a market exclusivity like it did with ACE Demonstrations. A larger discount than the original 3% will be obtained by the development and implementation of the new gain sharing programs. This clearly says that if the bundle payment sponsor can not lower the staggering cost of their care, the financial repercussions could be devastating.
#3: Enable Change Through Leadership
Bundle payments will require competent leadership, which may mean a change in management. The effective leaders needed will be able to encourage the change and ability to grow both errors and accomplishments. They will know that through hard work and good decision making, this will grow into something that is both beneficial and profitable for them.
#4: Don’t confuse accountability with attentiveness
As an evidence-based way of dealing with the healthcare reform, it is hinged on feedback that will inform individual clinicians upon the failure to provide only the test and procedures needed. Many physicians have a hard time differentiating between what is known as excellent bedside manners, which include compassion, empathy and caring, with providing only what the patient needs versus what they want. With bundle payments there is no option, a physician must adhere to the standards best practice.
Deirdre Baggot PhD, MBA, BSN, attended the University of Colorado and is the vice president of a healthcare consulting firm located in El Segundo, California called the Camden Group.