Health Care Economics: Analysis of a Bundled Payment System Versus A Standard Fee-For-Service Payment System

Abstract

The Health Care reform has been a topic that has gained much attention in these past few years and has been widely studied and criticized within the United States. It is one of the biggest issues in present day and one of the most prominent concerns is how to make health care more economically efficient. This paper is research-based as I investigate different types of payment methods within healthcare, specifically within Medicare. Some of these payments are already widely used; others have only recently been implemented, while others are completely new proposals. With the help of my thesis advisor, Dr. Joiner, I have found the necessary documents in order to successfully analyze the differences and possibilities of a change from a fee-for-service payment to a bundled system payment. I discuss the potential economic benefit from changing payment method systems as well as breaking down the proposed alternative payment methods that are being implemented, or may soon be implemented, within the United States.