The U.S. Centers for Medicare and Medicaid Services (CMS) has announced a new demonstration program for hospitals to test the use of bundled payments for both hospital and physician services. The Acute Care Episode (ACE) demonstration will use a global payment to better align the incentives for both types of providers with the goals of improving quality and efficiency, and testing the effects of transparency on beneficiary choice and provider referrals. Among the procedures included in the bundled payment demonstration are 9 orthopedic inpatient surgical services, including hip and knee replacements and revision surgeries. The new AAOS Health Care Systems Committee will be addressing this and other facility-related payment issues.
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May 20, 2008
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