It's a Brave New World: Alternative Payment Models and Value Creation in Total Joint Arthroplasty

Alternative payment models are constantly evolving in an attempt to create value by decreasing cost while improving or maintaining quality. The Bundled Payments for Care Improvement initiative was implemented in 2011, and many institutions have seen early success by using the seven pillars of total joint arthroplasty episode management. Private insurers have seen improvements in care and cost savings by adopting private bundle programs. In each organization, alignment among all stakeholders is paramount to the success of the bundled payment programs. Gainsharing offers a unique opportunity to incentivize physicians to change their care practices in an attempt to reduce costs and improve outcomes. As bundled payments evolve, the cooperation of physicians, health care institutions, payers, and patients will lead to value creation for all stakeholders.