Bundled payment

Bundled payment, also known as episode-based payment, episode payment, episode-of-care payment, case rate, evidence-based case rate, global bundled payment, global payment, package pricing, or packaged pricing, is defined as the reimbursement of Healthcare providers (such as hospitals and physicians) “on the basis of expected costs for clinically-defined episodes of care.

It has been described as “a middle ground” between fee-for-service reimbursement (in which providers are paid for each service rendered to a patient) and capitation (in which providers are paid a “lump sum” per patient regardless of how many services the patient receives).

Bundled payments have been proposed in the Healthcare reform debate in the United States as a strategy for reducing Healthcare costs, especially during the Obama administration.

Salas-Vega et al. sought to distinguish among the clinical and nonclinical drivers of patient length of stay (LOS) in the hospital following elective lumbar laminectomy-a common spinal surgery that may be reimbursed using bundled payments-and to understand their relationships with patient outcomes and costs.