The pilot phase of the Bundled Payment for Care Improvement (BPCI) initiative has attracted 467 participants, according to the Centers for Medicare and Medicaid Innovation (CMMI). The great majority of these organizations will probably continue to participate when the performance period begins around July. BPCI offers these organizations an opportunity to learn how to better […]

If you are like many hospital finance leaders, you are probably still deciding how intensely you want to pursue the many new revenue models—such as ACOs, bundled payments, value-based payments, risk sharing. Even if you are undertaking the complex financial analysis of these contracts, along the lines described in the cover story for the April […]

  New value-based payment models, including bundled payments and shared savings ACOs, will affect hospital and health system operating revenues and earnings (see “The Transition to Emerging Revenue Models,” hfm, April 2013). They will also create new demands for capital. It’s not about bricks and mortar; it is all about infrastructure requirements, working capital and […]

One of the biggest risks for healthcare CFOs right now is underestimating the extent to which payer contracting has become intertwined with every aspect of organizational strategy. Life was simpler in the old days. If a hospital CFO could negotiate substantial increases from private payers, and Medicare increases were reasonable, life was good. Sure, there […]

  With the first quarter of performance data released for Medicare’s Bundled Payment for Care Improvement (BPCI) initiative, participants are in one of two camps: relieved that they saved money, or wondering if they can really reduce costs of care in the area they selected. Among the organizations we have observed directly, all were able […]

Results have come in for the first performance year of Medicare’s Bundled Payment for Care Improvement (BPCI) program. Providers are taking stock of successes and identifying areas for improvement.