What payment structure is characterized by combining multiple services and charging a set rate for them?

Bundled payments refer to a payment structure that consolidates multiple services related to a specific treatment or condition and charges a single, set price for them. This approach encourages healthcare providers to coordinate care, as they are incentivized to keep costs down while delivering all necessary services within the bundled payment framework. Bundled payments cover a range of services that might include hospital stays, procedures, post-acute care, and follow-up visits, streamlining the billing process for both providers and patients.

This payment model contrasts with other structures. For instance, per diem payments are billed daily, and case rate payments are typically limited to a single admission or episode without the comprehensive service integration seen in bundled payments. Capitation, on the other hand, is a fixed amount paid per patient rather than per treatment episode, which shifts financial risk in a different manner than the bundled approach. Thus, the bundled payment structure is key for promoting comprehensive and coordinated care while controlling costs effectively.