What is the Bundled Payments for Care Improvement (BPCI) initiative intended to do?

• A. Reimburse an episode of care across multiple settings with a single bundled payment to promote care coordination and cost containment.
• B. Pay hospitals a per-day charge for all days of hospitalization.
• C. Provide unlimited reimbursements for postacute care.
• D. Offer payment based on physician reimbursement schedules.

Answer: (A)

Bundled payments aim to pay for an entire episode of care with one amount that spans multiple settings, such as hospital, postacute, and home health, rather than paying for each service separately. This structure encourages providers to coordinate across the whole episode to control costs while maintaining quality. If total costs stay under the target and quality standards are met, providers can share in savings; if costs exceed the target, they may bear some risk depending on the model. The other options describe per-day charges, unlimited postacute reimbursements, or payment schedules by physicians, which do not reflect the episode-based, cross-setting bundle that BPCI uses.