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Health care innovation concept The episode of care (EOC) model is sometimes called “bundled care,” since providers and services are “bundled” together for different episodes of care. (Image: Shutterstock)

Using episode-based payment arrangements could help both businesses and their employees hold down health care costs, according to a new analysis from Manatt Health. However, the white paper presents a system with more than a little complexity, even if it holds the promise of lower costs.

Using episode-based payments is an approach that has been tried by a variety of stakeholders, including the federal government. Under the model, providers are paid a flat fee for a defined episode of care, rather than the traditional fee-for-service approach, which can emphasize quantity of care over quality of care.

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