Bundled payment arrangements involving providers and payors are rapidly gaining traction in the health-care industry. Championed by the federal Center for Medicare and Medicaid Innovation (commonly known as the “Innovation Center”—a center created by the Affordable Care Act, the future of which remains uncertain), the model has also been implemented by commercial and self-funded insurance plans.

This article, divided into two parts, introduces the rationale for bundled payment reimbursement models and then lists the top ten items to consider when structuring such an arrangement. Part I discusses items 1 through 5; Part II discusses items 6 through 10.

Bundled Payment: What Is It?

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