U.S. Health Care On the Cusp of Bundled Payments

Dozens of papers and articles have been written on episodes of care and their incarnation into a payment modality that, today, is referred to as a bundled payment. In fact, a 2012 report from the Congressional Budget Office identified bundled payments as the only Medicare payment demonstration project to date that had showed clear savings. And yet, despite the simple and intuitive nature of Solon's observations, payments for episodes of medical care remain a rarity in U.S. health care. Let’s try to understand why this is so and how that can and will change.

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