David Jackson, Senior Consulting Manager, Analytic Consulting and Research Services, Truven Health Analytics, formerly the Healthcare Business of Thomson Reuters. Building on the momentum created by PPACA legislation and commercial market payment innovation, new tactics for bundled payment are beginning to gain traction. David describes approaches used to support health systems in developing a bundled payment strategy and highlights a process to assess physician variation as part of a broader opportunity assessment and strategy. Specifically, he discusses methods to assess physician-specific clinical practice variation, how this impacts performance in a payment bundle, and how to identify steps for improvement.