Knee and hip bundled-payment challenge is about to start

172595378The average total cost to replace worn hips or knees in Tuscaloosa, Ala., can top $31,780—one of the highest prices across dozens of U.S. metropolitan areas, including Los Angeles and Seattle, where just about everything else costs more.

Starting April 1, the clock starts ticking for Tuscaloosa’s hospitals to lower their price for new hips and knees or lose money.

The western Alabama city is one of 67 markets where Medicare will for three months combine all the costs for joint-replacement surgery and any associated care into a single payment, what federal officials call a “target price” or “bundled payment.”

Hospitals that hold costs below that amount can keep the difference. Hospitals that don’t must repay the government. The model isn’t new to Medicare, but so far its experiments with bundles have been voluntary. The effort that begins next month—which will run for five years—is the first to be mandatory and is projected to save Medicare $343 million.


About Peter Coffaro 1102 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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