Abstract:Bundled payment, also known as episode-based payment, is based on the patient, and integrated several sequential therapeutic procedures from diagnosis to post operation. The total cost will be paid to one or more providers when procedures finish. Three types of bundled payment, including Proven-Care, Prometheus and the BPCI initiative of Medicare, have been put into practice in the medical insurance system of USA. The evidences from practices showed that bundled payment reduced the cost, simultaneously, and kept or improved the quality. Bundled payment based on DRGs, added global budget and brought in the evidence informed case rate and PAC allowance. It is very worthy for us that the evidence-based cost control and allowance-based incentive mechanism are used.