A "bundled" payment covers a defined package of services delivered by two or more providers during a single episode of care or over a specific period of time. Nine out of nineteen provider-payer pairs studied by Bailit Health Purchasing, LLC have fully operationalized at least one bundled payment.  Two more pairs are conducting observational pilots and three others have embarked on developing a bundled payment program.  The Healthcare Incentives Improvement Institute (HCI3) asked Bailit to examine the status of bundled payments in 2011, and then to update the results this year.  Overall, as reported in HCI3’s Issue Brief “Bundled Payments One Year Later: An Update on the Status of Implementations and Operational Findings—May 30, 2013,”  payer and provider pairs have successfully brought bundled payments online and are working toward making them a permanent health care financing change, although challenges remain.  The Issue Brief illustrates both the achievements and the challenges through...