Medicare Advantage Bundled Payment Model Tied to Less Skilled Nursing Facility Use

A Medicare Advantage bundled payment model for hip and knee replacements offered by Humana (NYSE: HUM) was associated with reduced skilled nursing facility use.

These bundled payments were also linked to reduced spending overall for lower extremity joint replacements (LEJR) – while maintaining quality of care, according to a study published in JAMA Network.

Of the bundled episodes, or instances when a MA beneficiary needed a hip or knee replacement, 780 of 6,355 were followed by a SNF stay. About 4,021 of 16,679 were referred to a SNF in the study’s control episodes.

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