Spending And Quality After Three Years Of Medicare’s Voluntary Bundled Payment For Joint Replacement Surgery

• DOI: 10.1377/hlthaff.2019.00466
• Publication Date: 2020-01-06T20:59:04Z
• Authors: Amol S. Navathe; Ezekiel J. Emanuel; Atheendar S. Venk...; Qian Huang; Atul Gupta; Claire T. Dinh; Eric Z. Shan; Dylan Small; Norma B. Coe; Erkuan Wang; Xinshuo Ma; Jingsan Zhu; Deborah S. Cousins; Joshua M. Liao
• Keywords: Male; Arthroplasty, Replacement, Hip; Patient Selection; Episode of Care; Medicare; 01 natural sciences; United States; 3. Good health; Humans; Female; 0101 mathematics; Arthroplasty, Replacement, Knee; Patient Care Bundles; Aged; Quality of Health Care

Medicare has reinforced its commitment to voluntary bundled payment by building upon the Bundled Payments for Care Improvement (BPCI) initiative via an ongoing successor program, the BPCI Advanced Model. Although lower extremity joint replacement (LEJR) is the highest-volume episode in both BPCI and BPCI Advanced, there is a paucity of independent evidence about its long-term impact on outcomes and about whether improvements vary by timing of participation or arise from patient selection rather than changes in clinical practice. We found that over three years, compared to no participation, participation in BPCI was associated with a 1.6 percent differential decrease in average LEJR episode spending with no differential changes in quality, driven by early participants. Patient selection accounted for 27 percent of episode savings. Our findings have important policy implications in view of BPCI Advanced and its two participation waves.