bundled-paymentThe trend to value-based medical treatment took a significant hit recently when the Trump administration cut the number of hospitals required to participate in the Comprehensive Care for Joint Replacement model and canceled other bundled payment models slated to go into effect on January 1, 2018.

HHS Secretary Tom Price has been a consistent critic of the mandatory payment model created by CMS Director Patrick Conway. Price’s announcement came shortly after Conway announced he was leaving CMS to become CEO of Blue Cross and Blue Shield of North Carolina, leaving many to question what the move means for the future of value-based payments. Still others believe that the value-based models were beginning to drive better outcomes and that more and more patients will be attracted to hospitals offering the highest quality of care. With the Medicare Trust Fund projected to run out of money in 2029, something needs to be done to repair or replace traditional fee-for-service reimbursement.