Takeaway 1: TEAM is a strategic opportunity, not a compliance exercise

On the surface, TEAM may not seem like a high priority in 2026. However, when mandatory downside risk begins in 2027, organizations that act strategically now are better positioned for success than those that meet the minimum requirements. Health systems that treat TEAM as “something they have to do rather than something they can learn from and build upon” risk falling behind their peers, warned Erik Johnson. Rather than treating TEAM as a regulatory checklist, he suggests health systems use it as a catalyst for broader system transformation. This positions them to better manage bundled payments and handle greater risk in the future.

Takeaway 2: Know where you currently stand

The critical first step to prepare for TEAM is to develop a thorough understanding of existing data and identify where blind spots remain. As Jennifer Leazzo noted, “This initial assessment of where you and your competitors are is the foundation for understanding how you could ultimately do in this type of model.” The data reveal how effectively health systems will be able to manage risk. This includes analyzing historical episode performance, cost drivers, and variation by physician, service line, and post-acute setting. For example, health systems need to see where a patient goes after a skilled nursing facility (SNF) stay — home, another facility, or a hospital — and when that information reaches them. Some organizations may be receiving this information in near real time, while others must wait 30–90 days until adjudicated claims data become available.

At the same time, analysis alone is not enough. Erik Johnson emphasized that “analytics can tell you who to care about and what you should be doing, but somebody then has to actually act on that information."

Takeaway 3: Care doesn’t end at discharge

TEAM is an opportunity to transform the full episode of care and support patients across the continuum. Under TEAM, hospitals remain accountable for quality, cost, and care coordination for 30 days after a patient leaves the hospital — making post-acute transitions, recovery, and downstream outcomes central to performance. This can help health systems “move from a transactional, traditional discharge planning model to one that's all-encompassing and is going to meet the patient's needs,” emphasized Jennifer Puzziferro.

Challenges in post-discharge timelines may include limited visibility into patient outcomes and risk, unreliable communication, and misaligned incentives among care partners. Improving discharge planning and patient tracking can help control costs while maintaining or improving quality. For example, reliably connecting patients to the next resource and equipping the receiving site of care with the information it needs can reduce risk of harm, improve quality metrics, enhance patient experience, and support financial performance.

Takeaway 4: Success starts with your post-acute network

According to ATI Advisory, between 20% and 60% of spending associated with TEAM-related procedures occurs after patients leave the hospital. This means that a post-acute strategy will make or break a health system’s performance. High-performing organizations actively manage home health, SNFs, and rehab utilization rather than leaving it to chance. To intentionally coordinate their post-acute strategy, hospitals and health systems should consider the following:

• Share information with post-acute partners. Post-acute facilities are highly regulated and often want to collaborate with health systems but lack the necessary support. Understanding how health systems can support them — such as through education and supplies — is critical to improving patient outcomes.
• Establish a “home first” approach to post-acute discharge planning. Patients who can safely recover at home should do so, provided that appropriate support and services are in place.
• Determine shared expectations for quality, length of stay, and discharge planning. As patients transition out of post-acute settings, a clear handoff to the appropriate care coordinator (e.g., primary care doctor, surgeon) helps ensure continuous accountability for the patient’s care.
• Avoid relying solely on Star Ratings to select SNF partners. It’s more effective to build a partnership on aligned operational models and care protocols. For example, when a patient shows signs of stress, hospitals and post-acute care facilities that have shared data and protocols can prevent unnecessary escalation to the emergency room.

Takeaway 5: Don’t wait to engage frontline clinicians

Health systems that adopt a wait-and-see approach to TEAM lose valuable learning time to test workflows, educate clinicians, and build institutional knowledge. Internal engagement is particularly critical for health systems to prepare and succeed with TEAM. Some physicians “may not want to understand \[risk contracts\], but they're participating in a model that benefits patients and the health system, which means that they're going to have to participate,” said Jennifer Puzziferro.

Inpatient care teams must understand what value-based care means and how it differs from traditional care models. Organizations can start driving frontline engagement by training their inpatient teams on the expectations surrounding TEAM and what it means for their roles. For example, they can train discharge planners to recommend the least restrictive care settings for patients. Enterprise-level leadership is critical to coordinating this effort. A chief medical officer or chief physician executive who has a high-level view of the organization is often better positioned than service line leaders or finance teams alone.

Parting thoughts

TEAM readiness is more than compliance — it's an opportunity for organizations to advance in episode-based value-based care. The health systems that perform best will be those that move early, treat TEAM as a catalyst for broader care redesign, and manage patients across the full episode, not just within the hospital’s walls. Organizations that fail to meaningfully engage with TEAM risk falling behind their peers.