The State of Vermont and Fletcher Allen Hospital in Burlington, Vermont have entered into a pilot bundled payment contract with Blue Cross Blue Shield of Vermont for state employees specifically for hip or knee replacements. reports that the payment amount is still undecided, but when it goes into effect, a lump sum will be provided by the insurance provider to the hospital.

AAHKS Third Vice President, David A. Halsey, MD is the Medical Director of the Joint Replacement Program at Fletcher Allen Hospital and has been advocating for this program to include physician integration. “The good news about this bundled payment is that the hip and knee surgeon remains in charge of the coordination of patient care from pre-hospital care through post-acute hospital care,” he said.

The more than 24,000 employees and retirees in state health plans could participate in the bundled payment program by the end of this year. Read the full story.