Bundled payments involve reimbursing healthcare providers for all services provided to treat a patient's condition within a limited timeframe. Participating in bundled payments allows providers to potentially profit if they can reduce costs through care standardization and efficiencies. However, it also means taking on financial risk. Key steps for providers in implementing bundled payments include determining which clinical episodes to bundle, contracting with payers, redesigning care workflows, implementing cost management systems, and continuously monitoring performance metrics. Transitioning to bundled payments will require significant changes to IT systems for tracking patients, costs, billing, and analyzing outcomes and financial performance.