Evaluation of the Medicare Acute Care Episode (ACE) Demonstration

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In June 2009, IMPAQ International LLC, with its partner, The Hilltop Institute, was awarded a contract to conduct an evaluation of the Medicare Acute Care Episode (ACE) Demonstration. A three-year demonstration project funded by the Centers for Medicare & Medicaid Services (CMS), the ACE Demonstration used a global payment for a single episode of care as an alternative approach to payment for service delivery under traditional Medicare fee-for-service (FFS). This report presents the findings of the evaluation of a bundled payment demonstration for selected cardiovascular and orthopedic procedures, which was implemented at five sites in four states.