Bundled payment groups should replace fee-for-service, physician pay commission says

Share this article:

The current fee-for-service healthcare model should be replaced with bundled payment systems that encourage more coordinated care, the National Commission on Physician Payment Reform said in a report released Monday.

A year ago, the 14-person committee was tasked with examining the current system of physician payments and suggesting reforms, with a specific focus on Medicare.

The committee issued 12 recommendations for payment reform in its report. Phasing out fee-for-service was the No. 1 proposal. The commissioners said FFS “contains incentives for increasing the volume and cost of services, whether appropriate or not; encourages duplication; discourages care coordination, and promotes inefficiency in the delivery of medical services.”

Bundled payment systems that reward quality of care, such as accountable care organizations, should therefore replace FFS, they said.

Acknowledging that the move to bundled payments will have to be gradual, the commission suggested starting with payouts related to people with multiple chronic conditions. The commission also said reform could start by bundling payments for conditions that involve in-hospital and post-acute care, such as heart attacks and joint replacements.

The commission's recommendations are in line with government reimbursement goals. More than 165 nursing home operators are participating in the latest bundled payment initiative of the Centers for Medicare & Medicaid Services.

Share this article:

More in News

Profile: AHCA's money player

Profile: AHCA's money player

If there's a prevailing theme around the hours American Health Care Association senior fellow Elise Smith keeps, it's that they are constant.

Residents cheer tractor parade

Residents cheer tractor parade

Many residents of the Oskaloosa Care Center in southern Iowa used to be farmers. They're reminded of their past by the cornfield next to the nursing home — and, once ...

No need for injury

No need for injury

Due to dynamic factors in moving residents, facilities must invest wisely in lifts, slings and batteries to make sure workers stay safe while performing transfers