DARIEN, Conn., March 22, 2017 /PRNewswire/ -- Remedy Partners, the episodes of care company, announced today that it has seen positive results with voluntary bundled payment models, delivering 7.7 percent savings for episodes of care under Medicare's Bundled Payments for Care Improvement (BPCI) initiative. That's more than $120 million of cost savings to the Medicare Trust Fund in 2017 alone. Remedy Partners has also seen substantial reductions of unnecessary hospital readmissions among its clients, showing that care quality and the patient experience does not have to suffer when care is delivered at a lower cost.
The news comes just two days after the Centers for Medicare and Medicaid Services (CMS) again delayed the effective date for the final rule "Advancing Care Coordination Through Episode Payment Models (EPMs)," putting a hold on the model that would mandate bundled payment programs for heart attacks and bypass surgery, as well as new coverage for surgical hip and femur fractures at more than 1,000 hospitals in 98 metropolitan areas. The mandated program represents just a small portion of Medicare spending. CMS left intact the voluntary bundled payment models, such as the Bundled Payments for Care Improvement initiative, covering $10 billion in annual medical spend, and the Comprehensive Care for Joint Replacement (CJR) model, representing $2.5 billion in annual medical spend.
"Voluntary bundles have proven to be successful in saving the healthcare system money and improving patient care. As we move to more value-based care models that encourage efficiency and improvements in care quality, bundled payments will continue to play a central role," said Carolyn Magill, CEO of Remedy Partners. "Bundles stand out among value-based care models because they have demonstrated significant savings in programs that are replicable and scalable across geographies. Some headlines this week were misleading; the rule that was delayed yesterday was just for one mandatory program and not the larger universe of bundled payment models. Bundled payments are here to stay."
In addition to the successful bundled payment models supported by Remedy Partners, evidence abounds demonstrating the effectiveness of bundled payment models. A study published in JAMA Internal Medicine this year shows that the Medicare bundled payment model is saving millions annually while maintaining or improving the quality of patient care. The University of Pennsylvania also released a study that credited bundled payments for hip and knee replacements, with more than 20 percent savings with at least the same or enhanced quality.
In January 2015, CMS committed to transitioning 50 percent of fee-for-service spending to alternative payment models by 2018. The new Secretary of the U.S. Department of Health and Human Services, Dr. Tom Price, has stated he is a strong supporter of voluntary bundled payment models. Likewise, CMS has signaled its commitment to continuing and expanding voluntary bundled payment models beyond 2018. With yesterday's delay of the mandatory EPM model, there's potential for mandatory programs to become voluntary, which would lead to more engaged healthcare providers and greater likelihood of quality and efficiency outcomes, according to Magill.
Remedy Partners delivers software and services that enable payers, employers and at-risk providers to organize and finance health care delivery around a patient's episode of care. The Company currently manages Bundled Payment Programs at over 1,000 health care locations, in partnership with hospitals, physician groups health systems, skilled nursing facilities and home health agencies. Remedy Partners is the largest awardee convener under Medicare's BPCI program, helping nearly 70 percent of program participants implement bundled payment models.
Contact: Randi Kahn
SOURCE Remedy Partners