What Does CMS Delay Mean for Bundled Payment Programs?

In an article in Healthcare Finance titled "Expert: Trump administration 'buying time' by delaying bundled payment programs," Healthcare Finance associate editor Jeff Lagasse talks to Archway Health CEO Dave Terry about what the recent delays announced by CMS mean for bundled payment programs. "It appears to me that they're just kind of buying time," Dave says. "Obviously there's a lot going on right now with CMS, with the healthcare reform bill and the new head of CMS being appointed within the past couple of weeks. I think they're giving themselves some more time."

From Healthcare Finance: "But Terry said it appears the administration, and the healthcare industry, are likely moving full-speed ahead on the shift from volume to value, with bundled payments representing a significant aspect of that sea change."

What may change however, according to Dave, is that some bundled payment programs may become voluntary instead of mandatory, and this could be a good thing. "We actually think the voluntary programs are a much better option for driving change than mandatory programs," Dave says. "When physicians sign up for voluntary programs, they're incredibly engaged in reducing costs. When you voluntarily sign up for something, the C-Suite is engaged, and change can happen much more swiftly and much more rapidly."

Read the full article here: Expert: Trump administration 'buying time' by delaying bundled payment programs

The Healthcare Financial Management Association (HFMA) also quoted Dave Terry in their reporting on the CMS delay.

From HFMA: "However, Terry said he has seen a lack of widespread 'engagement' by hospitals in CJR and the EPM programs because most don’t have the volume in those procedures for the models to have much of a financial impact. He blamed the lack of hospital focus on 'watered down' rules, including the lack of penalties in their first years and front-loading bonus payments for the small share of hospitals that have large volumes affected by the programs."

"'Some of them got engaged early, but many of them are waiting for the risk until it hits their radar screen as the top five or 10 things that they are worried about,' Terry said."

Read the full article here: Does Bundle Delay Signal the End of Mandatory Models?

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