Variation in bariatric surgery costs may impact bundled payments

Editor's Note

In this analysis of nearly 25,000 Medicare patients, mean total payments for bariatric surgical procedures varied from $11,000 to $13,000 per episode of care. The index hospitalization was responsible for 75% of total payments, followed by physician services (21%), and postacute care services (2.8%).

As hospitals enter Medicare bundled payment programs, they will need to target areas with the largest variation in costs for quality- and efficiency-improvement activities, the researchers conclude.

Importance Under bundled payment programs, hospitals receive a single payment for all services provided surrounding an episode of care. Because health care providers, such as hospitals and physicians, accept more financial risk under these programs, they will need a better understanding of episode costs to identify areas to target improvements in quality and cost-efficiency.