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Medical Schools, Teaching Hospitals Chosen for CMS Bundling Demonstration

New payment model will test ways to improve patient care, reduce costs

Washington, D.C., January 31, 2013—The AAMC (Association of American Medical Colleges) will convene a group of 10 medical schools and teaching hospitals in a new initiative from the Centers for Medicare and Medicaid Services (CMS) designed to control costs and improve quality by bundling payments for defined episodes of care. Nearly 50 additional academic medical centers also will be participating in the Bundled Payments for Care Improvement initiative announced today.

The AAMC group will participate in two of the bundling efforts designed to reform payment models for a mix of surgical and chronic conditions, such as joint replacements, heart failure, and stroke. As a convener of the group, the AAMC provided technical assistance, data analysis, and standardization recommendations to its members throughout the application process, and will continue to provide support during the three-year demonstration.

“America’s medical schools and teaching hospitals are uniquely positioned to take a leading role in initiatives such as this one that are transforming health care for patients. We applaud these institutions for their work with this important effort, which will ultimately reduce costs and result in better patient care,” said AAMC President and CEO Darrell G. Kirch, M.D.

The institutions participating in the AAMC’s group include Albert Einstein Healthcare Network, Atlantic Health, Duke University Hospital, NYU Langone Medical Center, Our Lady of the Lake Regional Medical Center, Penn State Milton S. Hershey Medical Center, Sinai Health System, University of California San Francisco Medical Center, University of Colorado Hospital, and Vanderbilt University Medical Center.

According to CMS, 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.

To learn more about how medical schools and teaching hospitals are improving health care, visit


The Association of American Medical Colleges is a not-for-profit association dedicated to transforming health care through innovative medical education, cutting-edge patient care, and groundbreaking medical research. Its members comprise all 145 accredited U.S. and 17 accredited Canadian medical schools; nearly 400 major teaching hospitals and health systems, including 51 Department of Veterans Affairs medical centers; and more than 80 academic societies. Through these institutions and organizations, the AAMC serves the leaders of America’s medical schools and teaching hospitals and their nearly 160,000 faculty members, 83,000 medical students, and 115,000 resident physicians. Additional information about the AAMC and its member medical schools and teaching hospitals is available at


Lesley Ward
Senior Media Relations Specialist
Telephone: 202-828-0655

CMS Announces BPCI Participants, Including AAMC Convener Group

The Centers for Medicare and Medicaid Services (CMS) Jan. 31 announced the participants in the Bundled Payment for Care Improvement (BPCI) initiative.  Among those participating is a group of 10 AAMC members convened by the AAMC; the AAMC group has members participating in Model 2 and Model 4 of the initiative.  Nearly 50 additional academic medical centers also will be participating in BPCI.