NR506 Healthcare Policy Week 2: Policy-Making Process: How Nurses Can Make an Impact

TD2: Ineffective Healthcare Policies

Bundled payment, often referred to as “case rates” or “episode-based payment,” is a reimbursement system in which hospitals and post-acute care providers are compensated with a fixed bundle of payments for an entire episode of care rather than for each individual service or item provided. For example, in the case of a patient undergoing cardiac bypass surgery, rather than making separate payments to the hospital, surgeon, and anesthesiologist, a combined payment is made to cover the entire episode of care. If the total costs of providing the care are less than the bundled payment, the healthcare providers or hospitals retain the difference. Conversely, if the costs exceed the bundled payment, the providers or hospitals absorb the loss. The primary goal of the bundled payment system is to reduce overall healthcare spending by offering financial incentives to healthcare providers for eliminating ineffective or duplicate services (Hussey, Ridgely, & Rosenthal, 2011).

While bundled payments are designed to enhance efficiency in healthcare delivery, they also present significant challenges that can lead to unintended consequences. One of the major concerns with this payment model is the potential for compromised patient care. When healthcare providers are incentivized to minimize costs, there is a risk that necessary services may be reduced or omitted to ensure that expenses remain within the bundled payment amount. This could result in suboptimal care or delays in treatment, particularly for complex cases where the costs of care are unpredictable or difficult to manage.

For instance, if a patient undergoing cardiac bypass surgery requires additional postoperative care due to unforeseen complications, the bundled payment might not be sufficient to cover the additional costs. In such cases, healthcare providers may be forced to choose between absorbing the extra expenses or limiting the care provided, potentially jeopardizing the patient’s health and recovery. This scenario highlights the ethical dilemma faced by healthcare providers when financial incentives are tied to cost-containment measures.

Moreover, the bundled payment system can lead to disparities in healthcare access and quality, particularly for patients with complex or chronic conditions. Providers may be reluctant to accept patients who are perceived to be high-risk or who may require extensive care that exceeds the bundled payment. This could disproportionately affect vulnerable populations, including the elderly, those with multiple chronic conditions, and individuals from lower socioeconomic backgrounds. As a result, these patients may experience delays in receiving care or may be denied access to certain treatments altogether.

The shift towards bundled payments also has significant implications for the nursing profession. Nurses, who play a critical role in patient care, are often at the forefront of implementing cost-containment strategies. However, the pressure to reduce costs under the bundled payment model may lead to increased workloads for nurses, as they are expected to deliver high-quality care with limited resources. This can result in burnout, job dissatisfaction, and a decrease in the quality of care provided to patients.

Furthermore, the emphasis on cost containment may undermine the holistic approach to patient care that is central to nursing practice. Nurses are trained to address not only the physical aspects of a patient’s condition but also their emotional, psychological, and social needs. However, when financial incentives prioritize efficiency over comprehensive care, nurses may be forced to focus on meeting specific cost-related targets rather than providing individualized care that addresses the full spectrum of a patient’s needs.

To mitigate the potential negative effects of bundled payments, it is crucial to involve nurses and other frontline healthcare providers in the policy-making process. Nurses have a unique perspective on patient care and are well-positioned to identify areas where cost savings can be achieved without compromising quality. By participating in the development and implementation of bundled payment models, nurses can advocate for policies that prioritize patient safety, quality care, and equitable access to healthcare services.

For example, nurses can play a key role in designing care pathways that streamline the delivery of services while ensuring that patients receive the necessary care and support throughout their treatment journey. This could involve the development of standardized protocols for managing common complications, as well as the integration of interdisciplinary teams to coordinate care more effectively. By leveraging their clinical expertise and patient-centered approach, nurses can help to create bundled payment models that balance cost containment with the delivery of high-quality, patient-centered care.

In addition to advocating for more effective bundled payment models, nurses can also contribute to the development of performance metrics that accurately reflect the quality of care provided under this reimbursement system. Traditional metrics, such as hospital readmission rates or length of stay, may not fully capture the impact of bundled payments on patient outcomes. Therefore, it is important to develop new measures that consider the holistic aspects of care, including patient satisfaction, functional outcomes, and the overall patient experience. Nurses can provide valuable insights into the design of these metrics, ensuring that they align with the goals of patient-centered care and reflect the true value of nursing practice.

Furthermore, nurses can advocate for policies that address the potential disparities in healthcare access and quality that may arise from bundled payments. This could involve lobbying for safeguards that protect vulnerable populations, such as requiring providers to accept high-risk patients or offering additional financial support for the care of complex cases. Nurses can also work to raise awareness of the ethical implications of bundled payments and promote policies that prioritize patient well-being over financial incentives.

In conclusion, while bundled payments have the potential to improve efficiency in healthcare delivery, they also present significant challenges that must be carefully managed to ensure that patient care is not compromised. Nurses, as key members of the healthcare team, have a critical role to play in shaping the policies and practices that govern bundled payments. By actively participating in the policy-making process and advocating for patient-centered care, nurses can help to create a healthcare system that balances cost containment with the delivery of high-quality, equitable care for all patients.

References

Hussey, P. S., Ridgely, M. S., & Rosenthal, M. B. (2011). The PROMETHEUS bundled payment experiment: Slow progress reflects challenges of reconciling provider interests. Health Affairs, 30(11), 2116-2124. https://doi.org/10.1377/hlthaff.2011.0784