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How to Design a Bundled Payment Around Value

Harvard Business Review

The team has been meeting every two weeks over the past four months to design a BP model for a pilot project. The key elements of the project are the following: Defining the Bundle. Such outcome-based guarantees and incentives are rare in traditional top-down bundled-payment contracts created without the input of frontline physicians.

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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. The most successful implementations have had strong executive support, exceptional clinical leaders, and dedicated, multi-disciplinary project teams.

Mayo 8
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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.