Deirdre Baggot is Vice President of Camden Group. This is a healthcare consultsing firm based in El Segundo. She has worked as a Practice Leader for bundled payments. Before this, she worked for ten years in academic healthcare. Deidre has also served in leadership roles and authored papers on bundled payments.
Recently, the Centers for Medicare and Medicaid Innovation made an announcement. It concerned the national expansion of bundled payments pilots. This signaled the exodus of the end of physician fee-for-service. Medicare, healthcare and other players in the commercial sector are following this trend. Follow Deirdre on Instagram
Healthcare organizations have to understand well how bundled payments work. This is according to Deidre Baggot. The four hard truths they have to learn include;
They Provide Patient’s Needs
Bundled payments only allow tests and procedures that patients need. This does not come in an easy way for people trying to balance patient and family desires. In previous demonstrations, committing up front to a fixed price proved effective. Physicians and hospitals share savings resulting from the efficient care.
There is no Volume Play
The Centers for Medicare & Medicaid Services offered market exclusivity to applicants. This was during the ACE Demonstration. In bundled payment expansion pilots, this perk does not exist. A discount deeper than the 3 % in the applications may sometimes come about. This is after giving Medicare a discount without a promise of incremental volume. Financial results can be disastrous if the BP sponsor refuses to lower the cost of care.
Best-performing hospitals can suffer from overly-powerful groups and unquestioned routines. Thus, Bundled payments call for competence in leadership. Effective leaders will enable change to thrive through errors and accomplishments.
Bundled payments are evidence-based. Successful implementation of such practices depends on a feedback mechanism. This mechanism by Deirdre Baggot alerts clinicians when they don’t adhere to the set standards of practice. Attributes that make healthcare professionals exceptional clinicians can be a problem. This happens when it comes to holding each other accountable. Physician administrators often confuse between accountability and attentiveness. In an environment with bundled payments, adherence to standards is not an option. It is a rule.