1. What Is the Bundled Payment Market?
The Bundled Payment Market encompasses healthcare payment model providing a single episode-of-care payment to provider group for all services delivered to patient within defined care episode including surgeon, hospital, anaesthesia, physical therapy,. Post-acute care, replacing fee-for-service FFS individual claim with bundled episode target price paid by, commercial insurer, or self-insured employer to provider for defined orthopaedic, cardiac, and oncology episode. The market includes for Care Improvement Advanced as the largest US mandatory bundled payment programme, Comprehensive Care for Joint Replacement CJR for knee. Hip replacement episode, commercial insurer Aetna and Cigna bundled payment contract, Remedy Health as the bundled payment technology platform, and Carrum Health as the employer-direct bundled payment surgery platform. These programmes are consumed by hospital and physician group specifying participation for cardiac, joint replacement, and sepsis care episode target price at reconciliation with shared savings. Downside risk, commercial payer specifying Aetna bundled payment contract for knee and hip replacement at defined global episode fee with provider network, and self-insured employer specifying Carrum Health for direct-to-employee bundled surgery benefit. Market scope covers mandatory and voluntary bundled payment programme value, commercial insurer bundled episode contract value, and bundled payment technology platform revenue for defined healthcare care episode,. Excludes traditional fee-for-service claim without episode bundling, capitation without defined episode structure, and bundled price without quality measurement.
2. Bundled Payment Market Size & Forecast
3. Emerging Technologies
- AI care pathway optimisation for bundled episode cost management is advancing ML model processing bundled episode care pathway, post-acute utilisation, and readmission data for real-time care management optimisation reducing episode cost below target price. Growing bundled payment hospital and physician group interest in AI care pathway for episode cost management below target price is expanding AI bundled episode optimisation.
- Bundled payment convener technology for multi-provider episode coordination is advancing Remedy Health and Archway Health bundled episode convener SaaS platform managing multi-provider episode reconciliation, post-acute care coordination, and shared savings distribution across surgeon, hospital. Growing physician group interest in bundled episode convener SaaS for multi-provider shared savings coordination above manual episode management is expanding bundled convener technology.
- Spine bundled episode for employer-direct spinal surgery benefit is advancing Carrum Health and Rightpath spine bundled episode providing employer employee direct-to-network spine surgery at bundled price including surgeon, facility, anaesthesia. Growing self-insured employer interest in spine bundled episode for employee spine surgery cost reduction below fee-for-service is expanding employer-direct spine bundled episode.
- International bundled payment from NHS Getting It Right First Time for orthopaedic episode is advancing UK NHS GIRFT programme bundled episode model for orthopaedic and cardiac NHS surgery above traditional NHS DRG tariff. Growing NHS provider interest in GIRFT bundled episode for NHS orthopaedic quality and cost improvement above DRG tariff baseline is expanding UK bundled payment adoption.
Comparable technologies are influencing adjacent market segments in similar ways. Read more in our Parking Payment Market.
4. Key Market Opportunity
A major opportunity in the Bundled Payment Market is the expansion of employer-direct bundled surgery as Fortune 500 and mid-market employer benefit manager replace fee-for-service employee surgical benefit with Carrum Health or Lumina employer-direct bundled episode at below-FFS network price with quality guarantee. A significant proportion of self-insured employer surgical benefit operates at unmanaged fee-for-service network rate above bundled episode target price, where employer-direct bundled surgery provides measurable surgical cost reduction with quality outcome guarantee. Carrum Health employer-direct bundled knee replacement providing 15 to 30 percent surgical episode cost reduction below employer fee-for-service benefit enables self-insured employer to reduce surgical claim cost. Bundled payment providers that develop employer-direct surgical bundled programme for mid-market and large employer, build employer benefit manager distribution, and grow with self-insured employer surgical cost focus are positioned to capture growing employer bundled payment demand.
5. Top Companies in the Bundled Payment Market
The following organisations hold leading positions in the Bundled Payment Market. The full report provides revenue share, SWOT analysis, and competitive benchmarking for each player.
- CMS (BCPI-A/CJR/EOM)
- Carrum Health
- Lumina Health
- Remedy Health (convener)
- Archway Health (convener)
- Aetna (bundled)
- Cigna (bundled)
- UnitedHealth (bundled)
- Geisinger (ProvenCare)
- Intermountain Health
6. Market Segmentation
The Bundled Payment Market is analysed across 4 segmentation dimensions. Revenue data, growth rates, and competitive intensity by sub-segment are available in the full report.
| Segmentation | Sub-Segments |
|---|---|
| By Programme | CMS BCPI-A CMS CJR Commercial Employer |
| By Episode | Orthopaedic Joint Cardiac Oncology Spine |
| By Provider | Hospital Physician Group Post-Acute |
| By Geography | North America Europe Asia Pacific Latin America Middle East and Africa |
7. Key Market Trends (2026–2034)
Three major forces are shaping the Bundled Payment Market trajectory over the forecast period:
CMS BCPI-A and CJR Lead Bundled Payment from Mandatory Medicare Episode Programme.Medicare-participating hospital and physician group specifying CMS Bundled Payments for Care Improvement Advanced BCPI-A for cardiac, joint replacement, and sepsis care episode at reconciliation target price. CMS CJR Comprehensive Care for Joint Replacement for lower limb joint replacement establish CMS mandatory and voluntary episode programme as the dominant bundled payment structure from federal scale and mandatory hospital participation. CMS continued BCPI-A and CJR bundled payment programme delivery to Medicare hospital and physician group participant in 2024, with consistent demand from Medicare value-based care bundled episode programme renewal.
Employer-Direct Bundled Surgery Growing from Self-Insured Employer Cost Control.Self-insured employer specifying Carrum Health employer-direct bundled surgery programme for knee, hip, spine, bariatric surgery at provider network bundled price below fee-for-service cost. For employee benefit creates consistent growing employer-direct bundled surgery demand from self-insured employer healthcare cost control and employee benefit enhancement above traditional fee-for-service surgical benefit. Carrum Health and Lumina Health continued employer-direct bundled surgery delivery to self-insured employer and benefit manager in 2024, with growing demand from self-insured employer surgical benefit cost control.
Oncology Bundled Payment Is Growing from CMS Enhancing Oncology Model.Oncology practice specifying CMS Enhancing Oncology Model EOM for cancer chemotherapy episode at 6-month episode with quality measure and shared savings creating growing oncology bundled payment demand from CMS mandatory oncology bundled payment for radiation. Chemotherapy cancer care episode above fee-for-service oncology. CMS continued Enhancing Oncology Model delivery to oncology practice participant in 2024, with growing demand from oncology practice EOM participation and shared savings programme.
For related market intelligence, see the Quick Response Code Qr Payment Market.
8. Segmental Analysis
By programme, CMS BCPI-A dominated the Bundled Payment Market in 2025, driven by CMS mandatory Medicare bundled episode as the largest programme by episode volume. CMS BCPI-A and CJR mandatory Medicare bundled episode continues generating the highest bundled payment demand as CMS programme represents the dominant structure from the largest mandatory federal episode volume. Employer-direct bundled surgery is the fastest-growing programme, driven by Carrum Health and Lumina employer-direct above CMS Medicare baseline. Growing Carrum Health and Lumina employer-direct bundled surgical episode above CMS Medicare programme is generating employer-direct growth above standard CMS mandatory baseline rates.
By episode, orthopaedic joint dominated the Bundled Payment Market in 2025, driven by CMS CJR knee and hip replacement as the largest bundled episode by volume. CMS CJR knee and hip joint replacement bundled episode continues generating the highest bundled payment demand as orthopaedic joint represents the dominant episode from the largest bundled Medicare surgical volume. Oncology is the fastest-growing episode, driven by CMS Enhancing Oncology Model above orthopaedic joint replacement baseline. Growing CMS Enhancing Oncology Model EOM and commercial oncology bundled chemotherapy episode is generating oncology growth above standard orthopaedic joint baseline rates.
9. Regional Analysis
Regional demand patterns across the Bundled Payment Market reflect differences in regulation, technological maturity, and capital investment.
Largest Market Share
North America accounted for the largest share of the Bundled Payment Market in 2025, holding 55.0% of the global market. The region's dominance reflects CMS BCPI-A and CJR as the world's largest bundled payment programme from federal Medicare mandatory episode participation, Carrum Health and Lumina as the leading employer-direct bundled surgery platform, and the highest US commercial insurer bundled episode contract volume from Aetna and Cigna. CMS mandatory bundled episode and Carrum Health employer-direct bundled surgery revenue create the highest North American bundled payment revenue. Growing North American employer-direct spine bundled episode and growing US CMS oncology EOM create consistent North American sector leadership.
Highest CAGR Region
Asia Pacific is expected to register the highest CAGR of 12.50% during the forecast period. Growing Australian public hospital episode-based bundled payment from IHPA activity-based funding ABF, growing Japanese DPC disease-per-diem bundled model expansion, and growing Chinese hospital bundled DRG payment from national DRG pilot programme are driving above-average growth. Growing Australian IHPA ABF bundled hospital episode and growing Japanese DPC bundled expansion create consistent Asia Pacific market growth. Growing Chinese national DRG bundled pilot and growing South Korean DRG bundled hospital payment create consistent Asia Pacific bundled payment demand growth.
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Frequently Asked Questions
The Bundled Payment Market was valued at USD 4.52 Bn in 2025 and is projected to reach USD 9.41 Bn by 2034, growing at a CAGR of 8.50% over the 2026–2034 forecast period.
The Bundled Payment Market is projected to grow at a CAGR of 8.50% from 2026 to 2034.
North America accounted for the largest share of the Bundled Payment Market in 2025, holding 55.0% of the global market.
The leading companies in the Bundled Payment Market include CMS (BCPI-A/CJR/EOM), Carrum Health, Lumina Health, Remedy Health (convener), Archway Health (convener), Aetna (bundled), Cigna (bundled), UnitedHealth (bundled), Geisinger (ProvenCare), Intermountain Health.
Cms bcpi-a and cjr lead bundled payment from mandatory medicare episode programme.
By programme, CMS BCPI-A dominated the Bundled Payment Market in 2025, driven by CMS mandatory Medicare bundled episode as the largest programme by episode volume.
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