Historically, reimbursement for transplant services has been handled in a number of different ways. Initially, many providers bundled all five phases together and offered insurers a single, global...

Historically, reimbursement for transplant services has been handled in a number of different ways. Initially, many providers bundled all five phases together and offered insurers a single, global rate. Although this method simplified the contracting process, the rate set was often chosen more on the basis of building market share than on covering costs. Indeed, many providers could not even estimate with any confidence the true costs of providing transplant services. Somewhat ironically, success in gaining market share usually increases the financial risk of the transplant program because higher volumes increase the likelihood of higher acuity patients.