In recent years, payment for healthcare services has moved away from fee-for-service reimbursement toward value-based payment models. In this paper, we present a case study related to knee osteoarthritis and highlight why musculoskeletal conditions are well suited for bundled payments. In addition, we review the features that should be considered by organizations who are designing a bundled payment model (BPM). The main sections include discussion of:

• Types of organizations entering into a BPM
• Types of BPMs
• Why musculoskeletal conditions provide robust opportunities for bundled payment success
• A case study: designing a BPM around knee osteoarthritis