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4 Reasons To Love Bundled Payments

by AHIP

September 4, 2018

Adapted from an AHIP Institute presentation by Bill Nordmark, Chief Commercial Officer at Aver, Inc.

  1. Improved health outcomes. When care is well managed, and payments are connected to outcomes rather than health care incidents, providers are rewarded for delivering quality care.
  2. Reduced complexity. Health care and health insurance providers alike are finding that pricing complexity has led to increased administrative costs, even when medical costs go down. If providers can spend less time and manpower on billing, they can spend more time and energy on their patients.
  3. Reduced overutilization. Bundled payments incentivize the efficient utilization of services. The fee-for-service model pays for the quantity of health care services, not keeping people healthy.
  4. Improved transparency on pricing and outcomes. Health insurance providers are encouraging patients to compare costs before choosing a provider. Bundled payments give insight into the total cost of a procedure so they can make good choices.