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Dignity Health "Bundles Up" to Improve Coordination

Pilot programs aim to serve 20,500 Medicare patients and save more than $7 million

San Francisco, CA – January 31, 2013 – Dignity Health announced today that it has been selected by the Center for Medicare and Medicaid Innovation for participation in three bundled payment pilot programs aimed at improving care and reducing costs. The programs at Dignity Health hospitals are anticipated to serve approximately 20,500 Medicare beneficiaries and deliver a savings of more than $7 million over three years.

"By better aligning doctors and hospitals we believe we can have a profound impact on both the quality and cost of care," said Lloyd H. Dean, president/chief executive officer of Dignity Health. "We are proud to be part of this work and encouraged that what we learn from the pilot programs can serve as a model for the nation going forward."

The Bundled Payments for Care Improvement initiative includes four models of bundling payments, varying by the types of health care providers involved and the services included in the bundle. Depending on the model type, CMS will bundle payments for services beneficiaries receive during an episode of care, encouraging hospitals, physicians, post-acute facilities, and other providers as applicable to work together to improve health outcomes and lower costs.

Organizations of providers participating in the initiative will agree to provide CMS a discount from expected payments for the episode of care, and then the provider partners will work together to reduce readmissions, duplicative care, and complications to lower costs through improvement.

"The objective of this initiative is to improve the quality of health care delivery for Medicare beneficiaries, while reducing program expenditures, by aligning the financial incentives of all providers," said Acting Administrator Marilyn Tavenner.

San Bernardino - Model 1 Begins April 2013
Two Dignity Health hospitals in San Bernardino are among only 32 hospitals selected for the Model 1 pilot program. Beginning in April 2013, St. Bernardine Medical Center and Community Hospital of San Bernardino will be accepting bundled payments for acute care admissions for an estimated 13,000 Medicare beneficiaries. Under the model, the hospitals will accept financial risk and work more closely with physicians on care protocols and the implementation of evidence-based medicine.

"We are honored to have been selected for this pilot program," said Stan Rucker, vice president and chief strategy officer for Dignity Health's Inland Empire service area. "These innovative approaches hold the potential to help us improve quality, lower costs, and provide better health care to Medicare recipients in the Inland Empire."


The Center for Medicare and Medicaid Innovation have named several Dignity Health hospitals as among those to pilot bundled payment models.

Publish date: 

Thursday, January 31, 2013