The New Evidence Behind Direct-to-Employer Bundled Payments
The 2021 RAND study on Carrum Health’s bundled payment program has caught the attention of employer-purchasers across the country.
- Ryan Olmstead, CPR’s Director of Member Services,
- Christopher Whaley, lead study author and policy researcher with the RAND Corporation,
- Sidney DiDomenico, Director of Employee Benefits for Public Risk Innovation Solutions and Management (PRISM),
- Jon Camire, Chief Financial and Analytics Officer at Equity Healthcare; and,
- Aon’s National Leader of Delivery System Transformation, Wendy Smith.
Learn more about our guest speakers here.
Recorded April 21, 2021
Health Affairs published the new RAND study on bundled payment in March 2021. It evaluated the cost and quality results of Carrum Health’s prospective bundled payment program for self-insured purchasers. The research found that after implementation of the program, episode prices for three selected surgical procedures declined by $4,229, a 10.7% relative reduction. Employers captured approximately 85% of the savings, or $3,582 per episode (a 9.5% relative decrease), and patient cost-sharing payments decreased by $498 per episode (a 27.7% relative decrease). The study analyzed the following surgical procedures:
- spinal fusion (DRG 455),
- major joint replacement (DRG 470), and
- bariatric surgery (DRG 621).
Want to access related resources from CPR?
- CPR’s Purchaser’s Guide to Program Evaluations helps benefit managers build the evidence-base around employer-led care delivery transformation.
- Interested in pursuing bundled payment? Read CPR’s Bundled Payment Options in the 2020 Marketplace (Free Download)
- Want to evaluate an existing program? Use CPR’s Reform Evaluation Frameworks data tools for Vendor-Convened Bundled Payment, Health Plan Bundled Payment, or Centers of Excellence Programs.
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