Medicare bundled payment program: meaningful risk and limited reward

CMS's Bundled Payments for Care Improvement initiative is accepting applications from healthcare provider organizations that would like to participate in the one of four alternative payment models under the initiative. Three of these models-the All MS-DRG Hospital Model, the Global Hospitalization Model, and the Global Episode Model-target care delivered in an acute care setting. Hospitals contemplating participation in one of the models should weigh the benefits and risks of participation; it is likely the significant risk and limited financial benefit associated with the program will dissuade most providers from participating inthe initiative.