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(Revised August 2013)
Note on Bundled Payment in Health Care
The note explains how bundled health care payment differs from fee-for-service payment; provides examples of the difference between the two; describes early innovators in bundling and their results; provides guidance on how to make it happen; and elucidates the legal issues bundling raises. Bundled payment will replace virtually all other health care payment formats. This note explains how and why.
Keywords: Health Care and Treatment;
Herzlinger, Regina E., and Charles C. Huang. "Note on Bundled Payment in Health Care." Harvard Business School Background Note 312-032, September 2011. (Revised August 2013.)