New CMS bundled payment model introduces outpatient episodes

February 27th, 2018

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Note:  The following article synopsis was NOT provided by HCPro. It was created by Find-A-Code/innoviHealth.

Article Overview

This article provides an overview of CMS’s Bundled Payments for Care Improvement Advanced (BPCI Advanced) model and how it expands bundled payment episodes to include outpatient procedures. It is intended for providers, facilities, and coding or reimbursement professionals who need a high-level understanding of participation requirements, episode structure, payment methodology, and quality measure expectations under the program.

Why This Topic Matters

BPCI Advanced affects how Medicare bundled payments are structured and reported for selected clinical episodes. Understanding the model’s scope, participant types, and quality reporting framework helps organizations assess whether the program is relevant to their operations and readiness for alternative payment arrangements.

Article Sections

  1. Existing BPCI models

    Summarizes the earlier bundled payment models and their general structure. The section provides context for how the prior program differs from the newer model.

  2. BPCI vs. BPCI Advanced

    Compares the earlier program with the newer CMS model at a broad level. It outlines the major changes in scope, payment approach, and program status.

  3. Participation

    Describes who CMS is seeking to participate and the general participant categories in the model. It also notes the types of organizational capabilities highlighted in the application materials.

  4. Clinical episodes

    Explains the episode framework used in the program and identifies the broad categories of inpatient and outpatient episodes. It also discusses how episodes are anchored and the general types of services considered.

  5. Payment calculations

    Introduces the basic payment methodology used in the model and how reconciliation is described. The section covers the overall calculation framework at a high level.

  6. Quality measures

    Lists the categories of quality measures associated with the model and indicates that some apply broadly while others are episode-specific. It provides a high-level view of the reporting framework.

  7. What’s next

    Notes the application timing and points readers to additional CMS resources. It serves as a closing section for next steps and further information.

What You Will Learn

  • How CMS’s BPCI Advanced model fits into the broader bundled payment landscape
  • What types of participants and organizational structures the model describes
  • How the model organizes clinical episodes and distinguishes inpatient from outpatient episodes
  • What general components are involved in payment calculation and reconciliation
  • Which broad categories of quality measures are associated with the program
  • Where the article directs readers for application and program resources

Who Should Read This

  • Physicians
  • Hospitals
  • Physician group practices
  • Health system administrators
  • Medical coders
  • Reimbursement professionals
  • Compliance and regulatory staff

Codes Discussed

  • NQF: 1789
  • NQF: 0326
  • NQF: 0268
  • NQF: 1550
  • NQF: 2558
  • NQF: 2881

Code Ranges Discussed

  • MS-DRG: 122 DRGs

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