Bundling in Health Care

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Bundled Efficiency

In the U.S. alone, more than 366,000 people diagnosed with end stage renal disease (ESRD) are dependent on kidney dialysis as their life sustaining therapy (Collins, Foley, Gilbertson, & Chen, 2009). The majority of these patients rely on costly in-center hemodialysis (HD) three times a week to filter their blood during four-hour sessions. Since 1972, Medicare had covered patients’ dialysis related costs along with the separately billed and frequently used medications that are part of the end stage kidney disease treatments. The yearly price of this coverage had unveiled the shocking price tag of $77,506 for each individual requiring chronic hemodialysis care (Iglehart, 2011). In the government’s effort to constrain the escalating cost of dialysis treatments, the new bundling guidelines came into effect as of January 1st, 2011.

Organization’s Description

Renal Care Partners is a small group of dialysis clinics with the headquarter office in Florida. Each clinic will have assumed different partnership with the physicians that are the shareholders of the clinic. Accordingly, each clinic can have unit specific policy and procedures that reflect the nephrologists’ involvement of the company’s financial situation. In general, a charitable donation as a company has been scarce. In the past, RCP has participated in the National Kidney Foundation’s Kidney Walk event. Few employees on an individual basis have volunteered their services and donated funds to raise awareness about chronic kidney disease. Furthermore, HR as the administrator has managed the clinic for the last eight years working closely with physicians of the Virginia Nephrology Group. She has managed the fourteen employees in the clinic whil...

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..., if the dialysis costs exceed that of the bundled rate, dialysis centers must absorb the exceeding cost. Accordingly, the dialysis clinics will be monitored by a Quality Incentive Program (QIP). Clinical outcome measures relating to anemia management and dialysis adequacy will be evaluated against the clinic’s own past performance or national standards of dialysis. Starting in 2012, the clinic’s failure to meet QIP’s standards will generate penalty that can equate up to two percent of payment reductions (Iglehart, 2011). This demonstration of close vigilance by the CMS suggests its concerns for quality measurement in the midst of national healthcare budget crisis. In conclusion, dialysis clinics can successfully confront the financial constraint by modifying the business infrastructure to reflect clinical efficiency and expanding the home PD program.

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