Bundled payments are quickly gaining traction as one of the stepping stones for providers looking to enter Alternative Payment Models (APMs). Although the goal is to boost payer-provider collaboration and foster a better risk-sharing arrangement for achieving value-based care outcomes, providers face multiple challenges in getting accustomed to the new payment models.

The Center for Medicare and Medicaid Services (CMS) introduced the Medicare Bundled Payment for Care Improvement (BPCI) initiative in October 2013. Physician groups, post-acute care centers, and hospitals are participating in the model that operates on different types of reimbursements.