What does the term “bundled payment” refer to in relation to CPT?

The term "bundled payment" refers to a financial strategy in healthcare where a single payment is made to cover a set of related services or procedures for a specific episode of care. This approach contrasts with traditional fee-for-service models, where providers are reimbursed for each individual service rendered. By implementing bundled payments, healthcare systems aim to promote efficiency and improve the quality of care, as providers are incentivized to coordinate services and streamline treatments, ultimately focusing on patient outcomes over the volume of services.

The bundle typically encompasses all the aspects of care related to a particular diagnosis or treatment, which can include pre-operative tests, the procedure itself, and post-operative follow-ups. This model encourages providers to work as a team to deliver comprehensive care within the agreed-upon payment, fostering collaboration and potentially reducing costs.

The other options do not accurately convey the concept of bundled payment. For instance, limiting payments only to preventive services does not encompass the broader approach of bundling various treatments within an episode of care. Similarly, a payment model strictly for services rendered in a hospital or for emergency procedures does not capture the wider applicability and intent of bundled payments, which can encompass various types of healthcare settings and services.