Post-Acute Providers to be Part of Mandated Bundled Payments

According to the U.S. Department of Health and Human Services (HHS) 2014 Budget Proposal report, bundled payment for post-acute care providers, including long term care hospitals (LTCHs), IRFs, SNFs, and home health providers will begin in 2018. Payments would be bundled for at least half of the total payments for post-acute care providers. Rates based on patient characteristics and other factors will be set to produce a permanent and total cumulative adjustment of -2.85% by 2020. Beneficiary coinsurance would equal levels under current law. According to HHS, savings are estimated at $8.2 billion over 10 years.
A copy of the budget proposal is available here.
If you would like more information, please contact Lori McLaughlin at or 219.227.6075.