Medical Coding Practice Test 2025 – 400 Free Practice Questions to Pass the Exam

The term "bundled payment" refers to a system where a single comprehensive payment is made for all services associated with a specific treatment or condition. This payment model is designed to streamline the payment process by grouping together various services provided during a patient's treatment, which can include hospitalization, physician fees, and ancillary services, into one collective payment. This approach encourages efficiency in care delivery and can help in reducing overall healthcare costs by promoting accountability and collaboration among healthcare providers.

In contrast, payments made for individual services would not classify as bundled payments, as each service is billed and paid separately. Similarly, payments that cover only laboratory tests or are specific to nursing care lack the comprehensive aspect of bundled payments, as they do not encompass the range of services that a patient may receive for a particular condition or treatment episode.