McKinsey & Company: Payments

A healthcare payment system is a critical element of strategic purchasing that represents how healthcare purchasers pay healthcare providers for their services. Payments or healthcare payments are made through insurance or government payers via a system of reimbursement. Achieving scale, managing uncontrollable costs, and leveraging post-acute care resources are some of the problems solved by bundled payments. Healthcare systems utilize bundled payments to reduce their service utilization and costs.