• Christine A Yee, Steven D Pizer, and Austin Frakt.
• Partnered Evidence-based Policy Resource Center, VA Boston Healthcare System.
• Milbank Q. 2020 Sep 1; 98 (3): 908-974.

AbstractPolicy Points Evidence suggests that bundled payment contracting can slow the growth of payer costs relative to fee-for-service contracting, although bundled payment models may not reduce absolute costs. Bundled payments may be more effective than fee-for-service payments in containing costs for certain medical conditions. For the most part, Medicare's bundled payment initiatives have not been associated with a worsening of quality in terms of readmissions, emergency department use, and mortality. Some evidence suggests a worsening of other quality measures for certain medical conditions. Bundled payment contracting involves trade-offs: Expanding a bundle's scope and duration may better contain costs, but a more comprehensive bundle may be less attractive to providers, reducing their willingness to accept it as an alternative to fee-for-service payment.© 2020 Milbank Memorial Fund.

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