OrthoCarolina of Charlotte to bundle knee, hip replacement costs (Charlotte Observer)
Hospital leaders in Charlotte talk a lot about transforming the health-care system and moving from “volume to value.”
By that, they mean a future where doctors and hospitals get paid, not just for treating patients each time they get sick, but for keeping them well.
Still, the current system relies mostly on so-called “fee-for-service” reimbursement, under which patients and insurance companies pay for each appointment, test or procedure. The more services, the more payments.
Instead of waiting for change to be imposed, doctors at Charlotte’s OrthoCarolina, one of the region’s largest physician groups, have taken the lead in adopting a system to simplify billing and improve coordination of care.
Patients undergoing knee and hip replacements can get a single bill with a “bundled payment” that covers preoperative care, surgery, followup appointments, 90 days of physical therapy and the services of a “patient navigator” who serves as a guide through the process.
“We get paid one price no matter how much work we do,” said Dr. Daniel Murrey, CEO of OrthoCarolina. “I’m projecting that by 2020, all of o...
