Medicare is requiring that all healthcare providers switch to alternative payment models rather than how they traditionally bill patients. This includes adapting to one of the bundled payment systems or doing a pay-for-performance initiative. The three reasons for this, according to Deirdre Baggot who has extensive experience with bundled payment arrangements, is that they improve the care patients receive, reduce costs, and lead to better outcomes for patients. Read more about Deirdre Baggot on crunchbase
Deirdre Baggot offers consulting services to hospitals and physician groups who need to make this transition. She says that she started working with bundled payment systems in 2010 and in the past eight years they have shown themselves to be effective at all three of their objectives. She has spent her time since 2010 studying, testing, and developing a variety of different bundled payment systems and is gratified that her work is paying off.
The latest iteration of a bundled payment system is called BPCI Advanced. This one, in particular, is popular in the healthcare community because it offers a 5% bonus to participants. She says that adapting to BPCI Advanced requires a complete change in mindset to providing healthcare to patients from how it has been done in the past. It gets rid of unnecessary tests, for instance, and otherwise streamlines the whole process of how patients are cared for.
Deirdre Baggot says that healthcare providers do take on some clinical and financial risk when they make the switch to a bundled payment system. Due to this fact it was nursing facilities that first made the leap as it was easier for them to do. She says that more and more hospital and physician groups are now doing so. She lists among the benefits that patients are readmitted as often, medical errors are reduced, and different healthcare facilities can coordinate care more effectively.