Q: You recently co-authored a couple of studies on bundled payments. What was your motivation?

A: As we think about the broad healthcare landscape, there’s been a lot of emphasis on shifting away from the fee-for-service model and toward a value-based model. Among the new payment models, bundled payments have shown the most robust evidence for working. 

Q: Are you encouraged by the findings, which show the model saved money for hip and knee replacements without a change in quality? 

A: There is robust evidence bundling works in the short term and long term, and that’s quite reassuring. I think it’s interesting there’s only evidence for savings for hip and knee replacements. There are 47 other conditions CMS tested bundled payments for. Through my other work it seems there is emerging evidence that other conditions may lead to savings.

Q: What can nursing homes take from these studies?

A: Generally speaking, it’s an opportunity to engage rather than disengage. Also, if nursing homes can more effectively partner with hospitals to provide cost-efficient care with a strategy of becoming a preferred partner, that could be an effective way for them to carve out an important place in a variety of markets across the country.