Mar 29, 2017


Announcer: "The Health Minute" produced by University of Utah Health.

Interviewer: Bundled Payments, some people think that they could help reduce healthcare costs, but what are bundled payments and how exactly would they do that? Dr. Rachel Hess is Professor of Population Health Sciences at University of Utah Health. Help me understand the term "bundled payment."

Dr. Hess: Under traditional fee-for-service, patients, through their insurers, pay for each unit of care that they receive. Health systems are incented to deliver more units for more payments. With bundled payments, the patient, through the insurer, pays one amount for an entire episode of care like a surgery or even up to all the care that they get for a year and payments can be tied to quality. Healthcare systems are incented over the long-term to use more preventive care and services like nutrition classes, for example, to keep you healthier. Over time, the idea is that healthier people cost less money and overall healthcare costs go down.

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