Bundled Payments (BPCI)
Bundled payments pay a single target price for an entire episode of care, such as a joint replacement plus everything that follows for 30 to 90 days, rather than paying each provider separately. Medicare tested this through the Bundled Payments for Care Improvement (BPCI) initiative and BPCI Advanced. Because post-acute care is where episode spending varies most, home health agencies that deliver good outcomes at lower cost than facility care are natural winners under bundles.
Definition
Bundled payments pay a single target price for an entire episode of care, such as a joint replacement plus everything that follows for 30 to 90 days, rather than paying each provider separately. Medicare tested this through the Bundled Payments for Care Improvement (BPCI) initiative and BPCI Advanced. Because post-acute care is where episode spending varies most, home health agencies that deliver good outcomes at lower cost than facility care are natural winners under bundles.
Why it matters
Bundled Payments (BPCI) is part of the Revenue Cycle & Billing vocabulary used across home health operations, documentation, and revenue cycle. Understanding it helps clinicians, QA leads, and administrators stay aligned on care quality and compliance.
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