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Driving Savings through Bundled Payment Models

close up of a medical billing statement with a stethoscope on a desk

A question CHIBE researchers had was: “What are the drivers of reductions in Medicare payments and hospital savings (ie, increased margin) in bundled payment for joint replacement surgeries?”


Working with data from Baptist Health System in Houston, CHIBE researchers conducted an observational study following patients who had joint replacement surgery under a bundled payment program offered by CMS, determining that average Medicare expenditures for joint replacement episodes declined 20.8%. Baptist Health was able to drive savings through reductions in internal costs such as artificial joint implants as well as episode management such as reduced institutional post-acute care.

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