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(upbeat music) - [Narrator] Hip and knee replacements are the most common surgeries for Medicare beneficiaries. These surgeries combined cost Medicare more than $7 billion a year. As technology advances, more and more people are opting for hip and knee replacements. But the cost and quality of these surgeries varies greatly across the country. To address the high cost of hip and knee replacements and to improve the quality of care for patients, the Centers for Medicare Medicaid Services, or CMS, is testing out an innovative alternative payment model. In 2016, the innovation center at CMS launched the Comprehensive Care for Joint Replacement model, also known as the CJR model. This model builds off the success of the prior bundled payments for care improvement initiative. In order to test whether this payment model works in diverse hospitals and communities, 378 hospitals in 34 randomly selected areas were required to participate. The model requires hospitals to focus on two things, r
