CMS has launched the Acute Care Episode (ACE) demonstration program, under which hospitals will test the use of a bundled payment for both hospital and physician services for certain cardiac and orthopedic inpatient surgical services. The ACE demonstration goals are to: improve quality for Medicare beneficiaries; produce savings for providers, beneficiaries, and Medicare using market-based mechanisms; improve price and quality transparency, and increase collaboration among providers (including allowing certain voluntary gainsharing arrangements). There will be an informational teleconference for this demonstration on June 4 from 3 to 4:30 p.m. EST (dial 1-888-982-4492; the participant passcode “Acute Care”).