What does the term 'bundled method' refer to in payment models?

The term 'bundled method' in payment models refers to a system where patients pay for a collection of products and services as a single package. This approach streamlines the billing process, allowing for a consolidated price for a set of related healthcare services or products. For example, in the context of hearing aids, a bundled payment might include the cost of the device along with the fitting, follow-up appointments, and any necessary adjustments.

This method contrasts with other payment models that separate individual products and services and charge them separately, which can lead to confusion and potentially higher overall costs for patients. Bundling can enhance transparency and predictability in healthcare spending, as patients receive a comprehensive cost upfront rather than facing multiple charges over time. Additionally, bundled payments can encourage providers to focus on outcomes rather than the volume of services provided, potentially improving the overall quality of care.