Implementing Bundled Payment: A Case Study of the Crozer-Keystone Health System

January 2012
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Implementing Bundled Payment includes a detailed description of Crozer-Keystone Health System's (CKHS) initiatives to support bundled payment (BP) in the areas of care redesign, health information technology, and physician engagement. This study also considers best practices and lessons learned from CKHS's BP experience. CKHS is a medium-sized, integrated, not-for-profit health system located in the suburbs of Philadelphia. This health system comprises five hospitals, a comprehensive network of primary care and specialty practices, numerous outpatient and specialized care facilities, and the HealthPlex Sports Club. In partnership with Independence Blue Cross, CKHS is piloting a bundled payment program for two inpatient procedures—hip and knee replacement. CKHS is conducting its BP pilot as a simulation in which bundled payments are calculated and recorded for hip and knee replacement procedures, while actual reimbursement from Independence Blue Cross follows preexisting reimbursement arrangements.


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