The Centers for Medicare and Medicaid invited providers on Tuesday to help develop four models to bundle payments. The program is meant to encourage hospitals, doctors and other specialists to coordinate in treating a patient's specific condition during a single hospital stay and recovery.
"Today Medicare pays for care in the wrong way," Health and Human Services Secretary Kathleen Sebelius told reporters on a press call. "Payments are based on the quantity of care, and not on the quality of that care," she said. "There is little financial incentive for the kind of care coordination that can help patients from returning to the hospital."