News archive 2017


Final Decision: Medicare Cancels Cardiac Bundle

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December 4, 2017

Final Decision: Medicare Cancels Cardiac Bundle

 

The Center for Medicare & Medicaid Services (CMS) has finalized its decision to cancel a planned bundled payment model for cardiac care, cardiac rehabilitation, and hip surgery that would have forced hospitals in 98 regions to participate.  The agency also finalized its proposal to ease the mandatory requirement that hospitals in 67 regions of the country participate in the current bundled payment model for hip and knee replacements.

 

Cardiac Care, Cardiac Rehabilitation, Hip Surgery

 

Background: In July, 2016, CMS proposed a five-year demonstration project that would provide hospitals in 98 metropolitan areas with bundled payments for all the costs of coronary bypass surgery, heart attack care, and hip surgery (hip/femur fractures beyond hip replacement), and of any additional care patients needed within 90 days of discharge.  The program, which also would have created incentive payments for cardiac rehabilitation, was originally scheduled to begin in July, 2017, but was delayed.

 

Under the new decision, CMS is canceling the project completely.

 

Hip and Knee Replacements

 

Background:  In April, 2016, CMS started paying hospitals in 67 regions a single bundled payment for all costs associated with knee and hip replacements. The mandatory five-year program, known as the Comprehensive Care for Joint Replacement model, pays a set fee that covers the costs of the procedure, inpatient stay, and all related care that occurs within 90 days of discharge.

 

Under the new decision, CMS is reducing, from 67 to 34, the number of geographic areas in which all hospitals are currently required to participate. Hospitals in areas where mandatory participation is no longer required may participate on a voluntary basis.  All low-volume and rural hospitals in all of the geographic areas may participate voluntarily.