Which statement about bundled payments is true?

• A. Bundled payments involve paying a single price for an episode across multiple providers.
• B. Bundled payments involve paying per service.
• C. Bundled payments are only used for outpatient services.
• D. Bundled payments vary payment amounts with patient age.

Answer: (A)

Bundled payments are an episode-based payment method where a single negotiated amount covers all the care services related to a defined episode, delivered by multiple providers. This single price is intended to cover the entire course of treatment—hospital stay, surgeon and anesthesia, post-acute care, and other related services—so care teams must coordinate to stay within the fixed payment. That emphasis on one price for the entire episode across several providers is what sets bundled payments apart from paying for each service separately. It isn’t about charging per service, and while bundles can include inpatient and post-acute components, they aren’t defined by outpatient care alone. They also rely on a price level that may reflect patient complexity, but not simply vary by age.