![]() BPCI Episode Initiators include acute care hospitals, skilled nursing facilities, physician group practices, home health agencies, inpatient rehabilitation facilities, and long-term care hospitals that trigger an episode of care. Episode Initiators are health care providers that trigger BPCI episodes of care they do not bear risk directly (unless they also serve as an Awardee) but participate in the model through an agreement with a BPCI Awardee. In BPCI, an Awardee is the entity that assumes financial liability for the episode spending. Research has shown that bundled payments can align incentives for providers – hospitals, post-acute care providers, physicians, and other practitioners – allowing them to work closely together across all specialties and settings. Payment rewards the quantity of services offered by providers rather than the quality of care furnished. This approach can result in fragmented care with minimal coordination across providers and health care settings. Traditionally, Medicare makes separate payments to providers for each of the individual services they furnish to beneficiaries for a single illness or course of treatment. ![]()
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