Healthcare Operations Discussion 8: Bundled Payment

Bundled Payment
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The bundled payment model entails the payment of a certain specific rate is shared between the healthcare providers depending on a particular mode of treatment. It usually gives a one off mode of payment for any kind of treatment thereof. It therefore eliminates the traditional form of payment, whereby each player or contributor towards the treatment process is paid separately. For example, in the traditional method, a procedure for a knee replacement would call for the settlement of bills on the surgeon, other physicians and then the hospital too, or even the rehabilitation process.
In the medical industry, the importance of a bundled payment model is that it keeps the provider on toes, ensuring that here is more responsibility on the part of the provider, hence more care. Patients would therefore enjoy even better results due to the establishment of some form of consistency on the part of the doctors and other medical practitioners (Kendall & Lampert, 2015). The whole process cuts down on the expenses incurred i...