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Focus Areas

Bundled and Global Payments

Bundled and global payments for care encourage providers and other stakeholders to work together on innovative strategies that reduce system inefficiencies, improve the quality of care, share savings, and work towards full system care coordination.

A bundled payment is defined as a single payment to a provider, or a group of providers, for multiple health care services associated with a defined episode of care. Most episodes of care have a reasonably well-defined beginning and end, but for management of chronic conditions, episodes are defined as all the condition-related services in a certain period of time (e.g., twelve months).

A global payment is a fixed payment to providers for all or most of the care that their patients may require over a contract period, such as a month or a year, adjusted for severity of illness.

The major difference between global payment and bundled payment is that bundled payments cover the episodes of care for patients with certain conditions, while global payment covers total care regardless of how many services are provided to patients.