Medicare Test-Drives a Single-Payment System in Four States

New demonstration project bundles Part A and Part B payments for certain clinical services In January, the Centers for Medicare & Medicaid Services (CMS) launched its test drive of a proposed bundled payment concept it hopes will generate improved quality of care and cost efficiencies. The Acute Care Episode (ACE) Demonstration project replaces fee-for-service (FFS) with global payments for orthopedic or cardiovascular inpatient procedures or both at the five participating hospitals. A...
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