Last week, Blue Cross Blue Shield of Michigan launched a bundled payment pilot program for hip and knee replacements across seven Michigan health systems. The program will cover treatment and recovery from the surgical procedure through 90 days of care post-surgery.

“The variation in cost across hospitals and geographies is significant,” said Steve Anderson, vice president, Provider Contracting and Network Administration at Blue Cross. “We are working with surgeons and healthcare systems to manage the cost and outcome variation of these procedures, and to consider appropriate sites for care.”

Full release from Blue Cross Blue Shield here.