News: CMS officially cancels two bundled payment models

In August, CMS announced that it planned to cancel two mandatory bundled payment programs—surgical hip and femur fracture treatment mandatory bundled payment programs along with the cardiac rehabilitation incentive payment model for 2018. And, as of last Thursday, that plan has come to fruition, AHA News Now reported.

In addition, the rule finalized revisions to certain aspects of the Comprehensive Care for Joint Replacement model, including giving certain hospitals selected for participation a one-time option to choose whether to continue their participation.

As a result of the change to the Comprehensive Care for Joint Replacement model, CMS estimates that the model will save $189 million over the course of three years instead of $295 million, according to Modern Healthcare.

The American Hospital Association (AHA) has urged CMS to reduce regulatory burdens before, so this change comes as a welcome one according to AHA Executive Vice President Tom Nickels.

“[Voluntary payment bundles] will allow hospitals to not only capitalize on the work many of them already have done to prepare for such models, but also partner with clinicians to provide better, more efficient care,” he said in AHA News Now.

Editor’s note: To read the final rule from CMS, click here. To read Modern Healthcare’s coverage of this issue, click here. To read AHA News Now’s coverage, click here.