Physician group practices and hospitals that participated in the Medicare Bundled Payments for Care Improvement – Advanced model experienced a significant reduction in spending, according to a study published July 25 in JAMA Health Forum.
The study, which included a cohort of more than 800,000 Medicare beneficiaries, found that receiving treatment from physicians at practices in the BPCI-A model was associated with a $855 differential reduction in spending at 90 days, and hospitals had a $613 differential reduction compared to groups and hospitals that were not part of the model.
Researchers analyzed claims from Medicare beneficiaries who received lower-extremity joint replacements. The cost of the procedures were, on average, lower for those who received care from physicians and hospitals participating in the BPCI-A model.
Physician group practices accounted for 73% of the joint replacements in the cohort. The study highlighted the importance of creating alignment between physician group practices and hospitals in bundled-payment models in the future to reduce potential costs.
CMS has extended its current voluntary BPCI-A model through the end of 2025.
