May 21, 2018 | Knowledge@Wharton
Can Bundled Payments Help Control Health Care Costs?
The U.S. spends more per person on health care than any other major industrialized nation. In fact, costs now reach about 18% of GDP and so anything that can slow the climb – or reverse it – tends to get attention. One promising idea for blunting costs comes from new research on how Medicare experimented with bundled payments for knee and hip replacements. That saved about 5% of total costs. Beyond the monetary gain, that approach also appeared to raise the overall quality of care. Amol Navathe, a professor of medicine and health policy at Penn’s Perelman School of Medicine, was part of the research team. He joined the Knowledge@Wharton show, which airs on Wharton Business Radio, SiriusXM channel 111, to discuss the findings.