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How to Design a Bundled Payment Around Value

Harvard Business Review

To understand how to address these concerns, an academic team from Harvard Business School brought together a group of orthopedic surgeons from the Boston Shoulder Institute and Harvard Pilgrim Health Care, a Boston-based insurer, to create a new BP model focused on patient value. The bundle incorporated the metrics in two ways.

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The Mayo Clinic Model for Running a Value-Improvement Program

Harvard Business Review

These efforts were part of the providers’ quest to increase the value of their care delivery — in other words, achieve better outcomes at the lowest-possible cost. Unfortunately, fewer than 20% of patients had completed both pre- and post-operative surveys.

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Case Study: When to Drop an Unprofitable Customer

Harvard Business Review

But he could not shake his newfound awareness of the amount of money Egan was losing with Westmid — the account's ratio of operating income to sales was a negative 28%. The lack of traceability and transparency extended to the costs for specialized equipment that was used only for particular products or customers.