CHI St. Vincent reports savings in Medicare bundled payment initiative

CHI St. Vincent Infirmary achieved “significant savings” while performing more than 500 knee and hip replacement surgeries for Medicare patients as part of an initiative with the federal government, according to a hospital press release.

The Little Rock hospital performed the surgeries between Oct. 1, 2013, and Sept. 30, 2014, while participating in the Centers for Medicare & Medicaid Services (CMS) Bundled Payments for Care Improvement Initiative. The exact amount saved is scheduled to be reported by CMS when the initiative ends in 2018.

As part of the program, Medicare made traditional “fee-for-service payments” to the hospital for the knee and hip surgeries. Afterwards, the expenditures were reconciled against a target total cost, including inpatient care, acute care after discharge, and related services up to 90 days after the patient is discharged.

The program is meant to improve quality and lower costs. CHI St. Vincent and three physicians shared in the savings. If the outcomes had been poor, the hospital would have had to repay Medicare for part of the cost.

In a press release, Kevin Cullinan, CHI St. Vincent executive director of orthopedics, said data indicated that patients received better care and had fewer readmissions. Patients attended a “Joint Academy” before surgery to prepare them for the experience. While recovering at home, they could call a hotline where a registered nurse working with a surgeon answered questions.

The hospital’s participation in the program was voluntary. A sister hospital, CHI St. Vincent Hot Springs, will participate in a similar CMS program that is mandatory, the Comprehensive Care for Joint Replacements, beginning April 1.