Hoag Orthopedic Institute Launches Bundled Payment Model for Knee Replacements

Hoag Orthopedic Institute has entered into a partnership with McKesson and Aetna to create the first automated implementation of the Integrated Healthcare Association’s bundled payment model.

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Under the new model, the partners will establish a set, comprehensive fee for episodes of care, such as a total knee replacement. The goal of the project is to encourage evidence-based care while reducing complications and duplicated services.

Hoag Orthopedic Institute is implementing an automated bundled payment for knee replacement developed through IHA by physician organizations, hospitals and health plans. Aetna members meeting qualifying criteria will be able to participate in the program.

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