Posted in Orthopedics by mthibault on May 2, 2016
Bundled payments for joint replacements became a reality for hundreds of hospitals across the country with the April 1 implementation of CMS’s Comprehensive Care for Joint Replacement (CJR) model. So how have the first few weeks gone? Executives from two major orthopedics companies, Zimmer Biomet and Stryker, answered that question in recent days on their first quarter earnings calls.
It seems the new payment model, which rewards or penalizes hospitals based on clinical outcomes and costs, hasn’t disrupted business. Penalties are scheduled to start being applied in the second year of the program, while rewards, or reconciliation payments, can be collected starting this year.
At the same time, the leaders’ commentary made it clear that customers are indeed working on ways to lower post-acute care costs, as many industry onlookers expected.
