METHODS: The CATCH team implements evidence-based treatment protocol for practitioners to identify, treat and manage COPD. The target population is the 10,900 Medicare and/or Medi-Cal beneficiaries in the County diagnosed with COPD and to enroll and assess 2,500 patients over three years. GOLD Guidelines are recommended as the best standard of care. Mobile spirometers for the ambulatory care clinics within the County health care system were purchesed, extensive trainings provided to clinical staff on performing pfts. A nurse case manager conducts extensive assessments. Assessments are presented at weekly mulitidisciplinary conference to develop the plan of care. CATCH has developed, tested and implemented a “hybrid” payment reform model for the treatment and management of COPD that includes combining provider incentive with a pre-ordained basket of services that are evidence-based and will become standardized treatment protocol because it is embedded in the EHR. CATCHpay combines provider incentives with the bundling of services for COPD treatment across multiple care levels (primary care providers, specialists, home health organizations, emergency departments and community based organizations) to result in: 1) better care coordination through the use of CATCH care managers; 2) Health Information Technology (HIT) driven, standardized, evidenced-based treatment for COPD patients; 3) heightened patient safety through improved flow of information among providers; 4) improved service delivery system through standardization of treatment; and 5) improved workforce efficiency as a result of greater adherence to care plans. CATCHPay is determined by the “power plan” established in EHR driving treatment for COPD patients diagnosed as GOLD stage 1, 2, 3 and 4. In order to mitigate the fluctuating costs of COPD treatment, the CATCHpay bundled payment model asserts a structure based upon a GOLD severity risk assessment (A, B, C D) that is tied to a 12 month “basket” of services for the COPD patient.