About This Blog
Welcome to the Marketing and Planning Leadership Council’s blog, Service Line Transformation. This blog serves as the primary communication channel for our Service Line Transformation Initiative, a special multi-year research effort dedicated to helping organizations prepare key service lines for risk-based payment. We will address challenges ranging from growth strategy innovations for key services lines to chronic care strategy, service line leadership, innovative approaches to service line marketing, and more.
For more information on the Service Line Transformation Initiative, or to send us questions, comments, or leads on innovative service line and care delivery models, please email Rachel Reeves.
Among the payment reforms under consideration by CMS and private payers, a methodology known as bundled payment has gained traction. Bundled payment programs seek to address one weakness of the fee-for-service payment system -- that physicians face little accountability for the cost of hospital-based patient therapy or care. Physicians consider cost less often than would be desirable when making cost-related decisions, such as which implant to use or when to discharge patients. Traditionally, hospitals cannot legally reward physicians for reducing costs associated with inpatient care.
However, the Center for Medicare and Medicaid Innovation (CMMI) recently released a bundled payment program in which participants can legally gainshare with physicians for episodes of care, during which the physicians keep costs below a pre-determined target. The goal is to provide hospitals with a mechanism for engaging physicians in cost control efforts. CMS benefits because participating hospitals must offer CMS a discount on services, and hospitals will come out ahead if they leverage the gainsharing to lower costs by more than the discount and/or grow volumes by tightening alignment with physicians. For a more detailed discussion of CMMI's Bundled Payment for Care Improvement Initiative, listen to the recording of our previous webconference and/or download the handout.
Which service lines offer the best opportunity to maximize the return on bundled payments?