Aetna and Hoag Orthopedic Institute Collaborate with McKesson on Innovative Automated Bundled Payment Initiative

McKesson MCK has collaborated with Aetna AET and Hoag Orthopedic Institute of Orange County, California, to create the first automated implementation of the Integrated Healthcare Association's (IHA's) bundled payment model. With a potential to reduce health expenditures in the United States by as much as $300 billion between 2010 and 2020, according to The Commonwealth Fund, bundled payments for episodes of care represent one of the most promising approaches for controlling healthcare spending while improving patient outcomes. Rather than pay each caregiver separately for the services he or she provides, the bundled payment approach establishes a set, comprehensive fee for a given episode of care, such as a total knee replacement. This process aims to encourage the delivery of evidence-based care while reducing complications and duplicated services. Automating the new bundled payment models is critical to addressing the inherent administrative challenges of the bundling process.