Medicare’s Acute Care Episode (ACE) demonstration bundled hospital and physician payments for 37 inpatient cardiac and orthopedic procedures. This payment structure improved coordination between physicians and hospitals and motivated hospitals to negotiate lower prices with device manufacturers, in most instances saving money without evidence of stinting on care. The program should be expanded.
Accepted for Publication: May 14, 2014.Corresponding Author: Maura Calsyn, JD, Center for American Progress, 1333 H Street NW, Washington, DC 20005 (firstname.lastname@example.org).
Published Online: July 7, 2014. doi:10.1001/jamainternmed.2014.2981.
Conflict of Interest Disclosures: Dr Emanuel reported receiving payment for speaking engagements unrelated to this work. No other disclosures were reported.
Funding/Support: This work was made possible in part by a grant from the Peter G. Peterson Foundation to the Center for American Progress.
Role of the Sponsor: The funding source had no role in the design and conduct of the study; collection, management, analysis, and interpretation of the data; preparation, review, or approval of the manuscript; and the decision to submit the manuscript for publication.