Will bundled payments kill innovation?

Written by Helen Adamopoulos

Although bundled payments show promise as a method for containing healthcare costs while improving quality, some industry experts have expressed concern that this new payment model will hold back innovation efforts, Rebecca Paradis, a senior health policy associate at the Network for Excellence in Health Innovation (a nonprofit, nonpartisan health policy institute), writes in Health Affairs.

Bundled payment models are growing in prevalence and popularity — for instance, Medicare has launched a Bundled Payments for Care Improvement initiative. However, the focus on cost in bundled payment programs could discourage the adoption of new drugs and devices (particularly ones that are expensive in the short-term but could improve patient satisfaction long-term), as well as experimentation, according to Ms. Paradis.



Josh Sandberg

Josh Sandberg is the President of Ortho Sales Partners and Partner for The De Angelis Group. He also serves as Co-Founder and Editor of OrthoSpineNews.

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