CMS Nixes Mandatory Cardiac Bundles, Changes CJR Model

The Centers for Medicare & Medicaid Services (CMS) has finalized the cancellation of the mandatory hip fracture and cardiac bundled payment models, and in the same move, also implemented changes to the Comprehensive Care for Joint Replacement (CJR) Model.

Specifically, CMS is reducing the number of mandatory geographic areas participating in the CJR model, from 67 areas to 34 areas.

Further, the agency is making participation voluntary for all low-volume and rural hospitals participating in the model in all 67 areas—an effort the agency says is an “ongoing commitment” to address the unique needs of rural providers.


Overall, home health providers have realized their role with respect to treating CJR patients, as they have become key players in keeping costs down through the post-acute period following an orthopedic procedure.

This regulation also provides for an Interim Final Rule with Comment Period, whereby CMS is establishing and seeking comment on a final policy to “provide flexibility” in establishing episode costs for participant hospitals located in areas are impacted by “extreme and uncontrollable circumstances.” Examples of these regions include those that were impacted by the recent Hurricanes Harvey and Irma, according to CMS.

Cancellation of two bundled payment models


In addition, CMS has canceled the hip fracture and cardiac bundled payment and incentive payment models, also known as the Episode Payment Models and the Cardiac Rehabilitation Incentive Payment Model.

The final move fulfills the agency’s proposal in August to cancel the bundles, which stakeholders in the industry believed were being implemented too fast.

The models, which were scheduled to begin on January 1, 2018, were originally planned to be operated by the CMS Innovation Center.

The cancellation of these models gives CMS “greater flexibility” to construct and pilot other programs that will enhance quality and care coordination across the in-patient and post-acute care spectrum, according to the agency.

“While CMS continues to believe that bundled payment models offer opportunities to improve quality and care coordination while lowering spending, we believe that focusing on developing different bundled payment models and engaging more providers is the best way to drive health system change while minimizing burden and maintaining access to care,” CMS Administrator Seema Verma said in a press release. “We anticipate announcing new voluntary payment bundles soon.”

Written by Carlo Calma

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