Bundled Payment Program

For those coming out of the hospital to recover in an assisted living or adult day care center a new bundling program announced by the Department of Health and Human services (HHS) will seek to improve patient care at the hospital and post-release, marking the latest attempt by the Centers for Medicare & Medicaid Services to coordinate care and payment through the post-acute care phase of the care continuum.

HHS said doctors, hospitals and other health care providers can apply to participate in the bundled Payments for Care Improvement Initiative. "It will align payments for services delivered across an episode of care, such as heart bipass or hip replacement, rather than paying for services separately. Bundled payments will give doctors and hospitals new incentives to coordinate care, improve the quality of care, and save money for Medicare," HHS said in a statement.

The Bundled Payments initiative is being launched by the new Center for Medicare & Medicaid Innovation, created by the Affordable Care Act to find better ways to provide and pay for health care to Medicare and Medicaid beneficiaries.