Episode-Based Bundled Payments in Hand Surgery: An Affordable Solution to Overwhelming Health Care Costs

Abstract

The purpose of this review is to examine the literature regarding episode-based bundled payment models for hand surgery. Health care and productivity costs associated with the surgical management of hand and wrist pathologies represent a substantial burden on the United States health care system. Traditional fee-for-service models fail to incentivize interdisciplinary collaboration and optimization of resources. More recently, the concept of episode-based bundled payments has evolved as a potential solution to rising health care costs by encouraging care coordination, streamlining billing processes, and linking reimbursement to quality metrics and patient outcomes as opposed to the volume of services rendered. Although episode-based bundled payments have demonstrated the potential to reduce health care costs in various medical specialties, their feasibility in hand surgery remains relatively unexplored. The transition to episode-based bundled payments in hand surgery hinges on the ability to incentivize physicians to work cohesively with other members of the care team to reduce low-value preoperative testing, optimize patients preoperatively, and establish treatment guidelines, especially for patients undergoing high-volume, low-complexity procedures. By fostering collaboration among stakeholders, leveraging data-driven insights, and prioritizing patient-centered care, episode-based bundled payments have the potential to enhance the value and efficiency of hand surgery services while improving patient outcomes. The current literature regarding episode-based bundled payments in hand surgery highlights various avenues for cost savings, including alternative sites of service, surgical approaches, use of anesthesia, and the elimination of low-value tests, and demonstrates that there is sufficient evidence to proceed to a trial phase for episode-based bundled payments in hand surgery.

Keywords: alternative payment models; episode-based bundled payments; hand surgery; patient outcomes; value-based health care.