Hospitals Eye Continued Red Ink for CJR Bundles

Guidehouse's Chris Stanley, M.D. via HealthLeaders

Last year, a majority of hospitals expected to lose money in Medicare's mandatory bundled-payment program for hip and knee replacement procedures. According to this HealthLeaders article, the outlook appears to have brightened — slightly. 

While savings expectations remain low for Medicare CJR bundling participants, Guidehouse’s Chris Stanley, M.D. said opportunities exist if providers focus on post-acute use: narrowing down the number of SNFs that a hospital uses based upon quality, and SNF length of stay and ability to collaborate. "It's a bit early to generate a broad view of how hospitals are performing in 2017 when downside penalties kick in, though we expect many hospitals will incur a penalty under the program in 2017. Hospital preparedness to participate effectively in CJR has improved, but more work is needed."

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