At AAOS, Discussion on Bundled Payments Takes Centerstage

CLxP0LaUwAAC26OStarting April 1, 800 hospitals in 67 metropolitan statistical areas will implement the Comprehensive Care for Joint Replacement Model, an alternative payment model by which the Centers for Medicare and Medicaid will pay hospitals based on the quality of hip and knee replacement procedures offered to Medicare beneficiaries.

As such the topic was of great interest at the annual meeting of the American Academy of Orthopaedic Surgeons that kicked off in Orlando on Tuesday.

The bundled payment model seeks to look at an entire episode of care — from 3 days prior to surgery all the way to 90 days post surgery — and pay providers based on good outcomes for each of those episodes. These could be low infection rates, reduced hospital admissions and other metrics.If providers perform well — in other words the cost of the care is lower than the target price set for each hospital implementing the program, then the hospital wins. If, however, the cost of doing hip and knee surgeries is above the target price, in year two of the program, providers will have to pay back the amount over the target price to CMS.


About Peter Coffaro 1134 Articles

A growth-driven and strategic executive, Peter Coffaro commands more than 20 years of progressive management success within the medical device industry. As a District Sales Manager for Stryker Orthopaedics, Peter was responsible for managing and directing a regional sales force to achieve sales and profit goals within the Rocky Mountain region. Previously, he was the Director of Sales & Marketing for Amp Orthopedics. In this role, Peter was responsible for planning, developing, and leading all sales and marketing initiatives. Peter is a former orthopedic distributor in the Pacific Northwest. He has also worked with DePuy Orthopaedics as well as Zimmer, and held positions in sales, sales training, and sales management. Peter has an extensive background in organizational development, business development, sales management, negotiating and P&L management. Peter holds a B.S. degree in Biology from Northern Illinois University.

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