Boeing, Cleveland Clinic strike bundled-payment deal

Cleveland Clinic has similar deals with six other companies

Boeing has started covering specialized cardiovascular care for nearly 83,000 employees, retirees, and dependents through a new bundled-payment agreement with the Cleveland Clinic.

Beginning Oct. 1, nonunion employees, retirees, and dependents who are not eligible for Medicare and require certain cardiac procedures—such as valve replacements and bypass surgery—will have access to necessary care at Cleveland Clinic facilities at little or no out-of-pocket expenses. Under the agreement, Boeing will cover the cost of travel and lodging for both the patient and a companion.

Michael McMillan, executive director of market and network services at the Cleveland Clinic, said the fixed-price arrangement gives the self-insured company "additional predictability" because all costs for a given procedure are included in a single payment.

According to Boeing spokesman Joe Tedino, the company hopes to eventually expand the program to all employees. Tedino also notes that the aerospace giant will regularly assess the effectiveness of the program to determine whether to expand the Cleveland clinic deal and include orthopedic procedures.

  • Do you have insights to offer on bundled-payment models? Take part in the Financial Leadership Council's Bundled Payment Finance Initiative Discussion for senior executives at institutions pursuing bundled-payment contracting.

The seventh bundled payment agreement for Cleveland Clinic

According to the Seattle Times, Cleveland Clinic has pioneered bundled-payment agreements with large employers since 2010, when it launched a similar program with Lowe's. The health system now has seven such agreements with large employers, including a deal with Wal-Mart announced earlier this month.

The bundled-payment agreement with Wal-Mart will send some of the retailer's employees and dependents to Cleveland Clinic and five other hospitals, including Geisinger Medical Center and Mayo Clinic, for cardiac surgeries (Ostrom, Seattle Times, 10/18).

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