Medicare Joint Replacement Program Saved $180 Million
A federal bundled payment model for joint replacements concluded in December 2024 after yielding significant savings.
Updated on Sept. 28, 2026 in Healthcare
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The Comprehensive Care for Joint Replacement (CJR) model saved Medicare $180 million over its final three performance years. The program, which ended in December 2024, utilized bundled payments to manage costs for hip and knee procedures.
Why it matters
The model was designed to test whether mandatory bundled payments could reduce spending while maintaining quality compared to traditional fee-for-service arrangements. Its performance provides a roadmap for federal efforts to address healthcare costs through value-based care.
The CJR model covered 143,000 procedures, accounting for 9% of all hospital-based joint replacements in the United States. Participation included 321 hospitals across 34 metropolitan areas.
The players
Centers for Medicare and Medicaid Services
The federal agency responsible for overseeing the Medicare program and implementing value-based healthcare payment models.
The details
Hospitals operated under a system where they received or owed money based on episode spending relative to predetermined target prices for the 90-day post-discharge period. Researchers evaluated program success by comparing these results against a randomized control group.
Timeline
The CJR model launched in 2016.
The extension period ran from October 2021 through December 2024.
The program concluded in December 2024.
The final evaluation was released on September 24, 2026.
Market Landscape
This initiative represents a significant push by federal regulators to standardize costs in elective orthopedic surgery. It signals a move toward broader implementation of bundled payment models across various surgical specialties to curb rising national healthcare expenditures.
Patients undergoing joint replacement at participating hospitals experienced a standardized care pathway during the 90-day post-discharge period. The program aimed to reduce unnecessary costs without changing the quality of care received by Medicare beneficiaries.
The takeaway
Bundled payment models offer a proven mechanism for the federal government to manage spending in common, high-cost medical procedures. Future healthcare policies may increasingly rely on these data-driven structures to incentivize efficiency in hospital networks.
Further reading
Learn more about federal cost-control initiatives in our Healthcare section.
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