Changing Times see DePuy Synthes Alliance with Specialist in Bundled Payment

We’ve reported in the past the trend for device companies to be increasingly involved in the continuum of patient care, rather than the straightforward provision of their device. Now J&J’s DePuy Synthes is entering a new exclusive strategic alliance with Value Stream Partners, LLC, experts in design, development and implementation of bundled payment programs for hip and knee replacements.


Beginning April 1, 2016, the U.S. Centers for Medicare & Medicaid Services (CMS) is requiring acute care hospitals in 67 regions to participate in its Comprehensive Care for Joint Replacement (CJR) Model, which compensates hospital providers for an entire episode of care – from the time of the hip or knee replacement through 90 days after discharge, rather than just for the surgery itself. Through this bundled payment model, hospitals will receive additional payments for strong quality and spending performance or potentially have to repay CMS for a portion of the spending for care if performance does not meet set standards.

That’s the backdrop to DePuy Synthes Companies’ announcement, made at this year’s American Academy of Orthopaedic Surgeons (AAOS) 2016 Annual Meeting. It’s not the first and it certainly won’t be the last time a major device provider involves itself in the care continuum, and it makes sense for all parties that incentives exist for optimal care. It’s a sound principle that demonstrably successful outcomes should get rewarded, in the case of a device company forming a great barrier to entry for incoming competitors. All of that, in turn incentivises device developers to ensure that innovations truly deliver.

In addition to the bundled payment initiative, DePuy Synthes Companies offer DePuy Synthes Advantage™, a program of more than 20 customized, measureable solutions that help healthcare providers achieve Triple Aim performance in orthopaedics. Solutions span patient and professional education, instruments and training to help improve efficiencies, and tools to measure performance.

Company comments

“There are great clinical and economic incentives for hospitals, physicians, and post-acute care providers to put in place the processes, procedures and alignment strategies necessary to better coordinate care,” said President, DePuy Synthes, U.S., Juan-José Gonzalez.

“VSP has a solid track record in designing, implementing and administering bundled payment programs with the necessary collaborative, alignment and balanced incentive strategies to be successful. We look forward to working with VSP to help provide our customers with tools to effectively address the new requirements under the bundled payment model and provide the best care possible for patients.”

“This exclusive arrangement with VSP will further enable us to help providers, healthcare systems, and governments face new challenges in healthcare delivery and achieve the Triple Aim of improving clinical outcomes, increasing patient satisfaction and lowering overall costs. We’re focused on innovation and offering total solutions that go beyond the implant and make a real difference both inside and outside of the operating room.”

Source: DePuy Synthes Companies

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