In the context of healthcare, what does 'bundling' refer to?

Bundling in healthcare refers to the practice of combining various healthcare services or treatments and billing them as a single package. This approach streamlines the billing process, reduces administrative costs, and can provide clarity to patients about their total healthcare expenses. Bundling is commonly used in situations like surgery, where various services—such as pre-operative consultations, the surgery itself, and post-operative follow-up—can be grouped together under one cost.

This method can enhance care coordination and incentivize providers to deliver comprehensive care efficiently. Many healthcare payment models, particularly value-based care initiatives, encourage bundling as a way to improve patient outcomes while managing costs effectively.