The Centers for Medicare & Medicaid Services will delay implementing one of the four models of its bundled payment initiative. According to CMS, "While the industry interest in Models 2-4 has been positive and robust, Model 1 has fewer prospective participants and less diversity than originally anticipated when the model was designed." As a result, "CMS has decided to delay further implementation of Model 1 until we can review how the model and its likely participants would fit into the broader bundles portfolio."

Administered by the Centers for Medicare and Medicaid Innovation (CMMI), the bundled payments initiative was announced in August 2011 as part of the Affordable Care Act. Under the initiative, CMS would link Medicare payments for multiple services patients receive during an episode of care.