Bundled Payments for Care Improvement Initiative

The Centers for Medicare and Medicaid Services (CMS) is implementing the Bundled Payments for Care Improvement (BPCI) initiative to test four different alternative payment models based on episodes of care that involve an inpatient hospital stay. One model focuses on care provided during the hospital stay, while the other three models include post-acute care provided once the patient is released from the hospital. CMS hopes that by paying for related care as part of a broad payment bundle, different providers who treat a patient during a single episode will have incentives to better coordinate care, avoid unnecessary services, and improve patient health. This brief describes the different models being tested and CMS’s experience with the project to date.