cases. That's a game-changer for patients, and they're the ones who
will help drive the movement."
Getting bundled payments in place now will set your facility up to
attract new surgeons and new specialties in the future, says Mr.
Leggett.
Bundles will continue to gain momentum, and the facilities that fig-
ure out how to provide the highest quality of care at the lowest cost
will be well-positioned to capitalize on the payment structure, says
Mark Domyahn, of Pursuance Consulting in Minneapolis-St. Paul,
Minn. Perhaps more importantly, they'll be able to negotiate from a
position of power when trying to maintain in-network security.
"Private payers are moving toward narrow networks and using their
leverage to reduce the number of specialists and facilities they contract
with," says Mr. Domyahn. "Bundled payments are a way to differentiate
your facility in the marketplace by taking the risk away from payers
while providing high-quality care. Why wouldn't payers want those facil-
ities in their networks and funnel more patients their way?"
Greater purchasing power
Bundled payments can give you leverage with vendors when negotiat-
ing the purchase price of supplies and implants, says Mr. Domyahn. He
says facility leaders can say, We're starting a bundled payment pro-
gram and every dollar counts. What can you do for me?
Negotiating down the price of implants is usually difficult for inde-
pendent surgical centers, which don't have the purchasing power of
larger hospital systems. Bundled payments help by capping the cost of
implants; bundles include a fixed amount for the hardware involved in
the procedure. "Facilities that effectively manage case costs will make
money with bundled payments," says Mr. Leggett. "Facilities that effec-
tively negotiate the cost of implants included in a bundle will make
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