Overall this is a good thing, if the process is kept simple enough to where it doesn’t work out to be another Health IT situation to where it takes more time to get started. 
Just the other day I posted about the amount of money a physician spends on the insurance side of things and it was a pretty large number.
Health Insurance Paper Work Costs Doctors an Average of $83k a Year
In addition many doctors and hospitals are not even ready to move into the ICD10 world so just looking at how much one can handle on the plate at one time. Hospitals might be able to work a bit easier from their end. BD
The initiative will bundle payment across provider sites for multiple services given during an episode of care, which is a single hospital stay and/or recovery from the stay. The idea behind bundled payments is to give providers a greater incentive to coordinate care across settings, which would require advanced use of health information technologies.
The initiative follows a Medicare bundled payment demonstration program for heart bypass surgery that saved Medicare $42.3 million--about 10 percent of expected costs--and saved patients $7.9 million in co-insurance costs, and lowered mortality rates, according to CMS.
The four payment models in the Bundled Payments for Care Improvement Initiative are:
* Model 1: An acute care hospital stay only,
* Model 2: The acute care stay plus associated post-acute care,
* Model 3: Just the post-acute care following discharge, and
* Model 4: A single prospective bundled payment that would encompass all services during an inpatient stay by the hospital, physicians and other providers
Final applications for Model 1 are due by Oct. 21, 2012, with applications for other models due by March 15, 2012. More information is available here.
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