CMS: BPCI Year 2 Progress Report

CMS: BPCI Year 2 Progress Report

CMS recently released its second Annual Report of the Bundled Payments for Care Improvement (BPCI) initiative. BPCI achieved a reduction in costs in some episodes and orthopedics showed the most positive improvement, with a net reduction in payments of ~$1,400 (~$850 more in reduction that non-BPCI comparison groups).

The report shows an increasing number of providers are becoming interested in new payment models, with 50 percent of the respondents citing the most important reason to participate in the initiative as learning about episodes.

Here are four main findings you should not miss:

1) SNF reduction drives down costs. The reduction in orthopedics payments was achieved by the decreased PAC use rate by 4.9% compared to the baseline.

2) Hospitals struggle to actively manage patients. Despite their increased patient education efforts, hospitals still struggle with actively managing patients post-discharge.

3) No significant change in quality. The reduction in spend did not negatively impact the quality of care, which implies that hospitals can achieve even more savings by identifying the main cost drivers early on.

4) More alignment, more collaboration. Hospitals are expending much effort to engage their care partners, with 80% of the BPCI model 2 participants applying for gainsharing waivers to share savings.