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The CMMS introduced the Medicare Bundled Payment for Care Improvement (BPCI) initiative in October 2013. The BPCI was designed to test whether linking the payments for all providers involved in delivering an episode of care could reduce Medicare cost while maintaining or improving quality of care. With this program there is a target price; a controlled payment that must be coordinated and distributed across various care providers. There are incentives which are aligned to value not volume. A number of different medical facilities are participating in this particular program including post-acute care centers, hospitals, and physician groups.

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