March 2014

Bundled payments are a step in the right direction when it comes to moving away from a fee-for-service payment structure. They have been proved to cut costs, and providers are responding by producing significantly better outcomes. naviHealth, a postacute care benefit manager, will test one bundled payment model using 11 hospitals in 5 states.

The ambiguous results of the Pioneer ACO evaluation could undermine the case for experimentation, and deter policy makers from moving forward as urgently as they must in order to improve on the ACO model. But it shouldn't.

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