The U.S. healthcare industry is undergoing a radical transformation, driven in part by spiraling cost increases. In response, new ways of structuring service delivery and reimbursement intended to realign provider incentives are gaining momentum. One of these is “bundled pricing” — providing a defined “package” of healthcare services to patients at a set price, quotable in advance. Such an approach is of growing interest to payers looking to limit their financial risk, and consumers increasingly focused on quality and cost.

In their November 2010 article, Financial Challenges of Bundled Pricing, published in Strategic Financial Planning, authors Rita E. Numerof, Ph.D., President, Michael N. Abrams, M.A., Managing Partner, and Bill Ott, M.B.A., Senior Consultant, describe what challenges healthcare systems will need to face in planning for bundled pricing. The authors review these challenges and recommend steps hospitals should take to ensure their ability to compete in this important new dimension.