Bundled payments for joint replacements

CMS is proposing to pay health systems a fixed amount for all care related to knee and hip replacements.

From the proposal:

The hospital where the hip or knee replacement takes place would be held accountable for the quality and costs of care for the entire episode of care - from the time of the surgery through 90 days after discharge.
As a result, hospitals would have an incentive to work with physicians, home health agencies, and nursing facilities to make sure beneficiaries get the coordinated care they need, with the goal of reducing avoidable hospitalizations and complications.
(Italics mine)

In 2013, Medicare spent more than 7 Billion dollars in hospital costs alone related to these procedures.  Clearly, they recognize the savings that occur if the three sectors of health care, Hospitals, Physicians, and Healthcare at Home all work together.

I have long advocated better coordination between Healthcare at Home and the other sectors.  In 75 different geographic regions, that coordination is going to be crucial to the financial well being of the health systems.