Bundled Payments

Bundled payments are a healthcare payment approach where a single, fixed fee covers all the services needed for a specific treatment or condition, like a joint replacement or maternity care. Instead of billing separately for each individual service, providers work collaboratively within the bundle to deliver care efficiently. If they manage to do so while staying within the budget, they can profit; if costs exceed the bundle, they absorb the loss. This system encourages coordinated, high-quality care, reduces unnecessary procedures, and helps control healthcare costs, aligning provider incentives with patient outcomes.