Lutheran Living Leads the Way in Health Care Innovation



Lutheran Living has joined Remedy Partners in the development and management of a bundled payment program for Medicare recipients. Promoted by the Affordable Care Act to help replace the traditional fee-for-service healthcare model, this model is intended to help to meet the goals of improving outcomes in care, increasing patient satisfaction and reduce the overall cost of healthcare—and it is gaining momentum.

In bundled payment programs, a fixed price is paid for a wide range of health care services over a specified period of time, known as an “episode of care.” It is among the primary strategies being used to transition away from fee-for-service payments.

Since implementing its first partnership in October 2013, Remedy has bundled payment programs that are live in more than 1,300 healthcare provider sites, including more than 800 hospitals. Remedy’s technology, analytics, training and administrative platform support the implementation and management of bundled payment programs at hospitals, physician groups, skilled nursing facilities and home health agencies.

The Center for Medicare & Medicaid Services (CMS) has been aggressively promoting bundled payments as a way to improve quality and reduce the cost of the federal Medicare program. CMS created the Bundled Payment for Care Improvement (BPCI) program through the Center for Medicare and Medicaid Innovation, as a voluntary demonstration program. Thousands of health care providers have entered the program to prepare for the expected roll-out of a permanent program. In Iowa Lutheran Living is one of only 4 skilled nursing facilities to enter the program to date.

“Organizing the financing and delivery of healthcare services around the patient’s episode of care leads to greater cooperation and more successful outcomes,” said Remedy Chairman Steve Wiggins. “Bundled payments are proving to be one of the most successful methods to shift from fee-for-service toward value-based payments for healthcare services.”