Catalyst for Payment Reform

The New Evidence Behind Direct-to-Employer Bundled Payments

The New Evidence Behind Direct-to-Employer Bundled Payments

The 2021 RAND study on Carrum Health’s bundled payment program has caught the attention of employer-purchasers across the country.

Learn more about the March 2021 study, “An Employer-Provider Direct Payment Program Is Associated With Lower Episode Costs” and how it’s informing the world of employer-sponsored health care purchasing.
Speakers include (in chronological order by appearance):
  • Ryan Olmstead, CPR’s Director of Member Services,
  • Christopher Whaley, lead study author and policy researcher with the RAND Corporation,
  • Sidney DiDomenico, Director of Employee Benefits for Public Risk Innovation Solutions and Management (PRISM),
  • Jon Camire, Chief Financial and Analytics Officer at Equity Healthcare; and,
  • Aon’s National Leader of Delivery System Transformation, Wendy Smith.
Learn more about our guest speakers here.

RAND Study Bundled Payment Webinar

Recorded April 21, 2021

Health Affairs published the new RAND study on bundled payment in March 2021. It evaluated the cost and quality results of Carrum Health’s prospective bundled payment program for self-insured purchasers. The research found that after implementation of the program, episode prices for three selected surgical procedures declined by $4,229, a 10.7% relative reduction. Employers captured approximately 85% of the savings, or $3,582 per episode (a 9.5% relative decrease), and patient cost-sharing payments decreased by $498 per episode (a 27.7% relative decrease). The study analyzed the following surgical procedures:

  • spinal fusion (DRG 455),
  • major joint replacement (DRG 470), and
  • bariatric surgery (DRG 621).

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