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 We are pausing publication of The Daily Briefing out of respect for the tragic passing of Brian Thompson. We will resume publication of this daily newsletter in the coming days.

Cheat Sheet

Transforming Episode Accountability Model (TEAM)

CMS has finalized the Transforming Episode Accountability Model (TEAM), a mandatory bundled payment model that will impact hospitals across the United States. Discover the key aspects of TEAM and get valuable insights and actionable steps for organizations preparing to participate.

What is it?

Earlier this year, CMS finalized the Transforming Episode Accountability Model (TEAM), a bundled payment model that will be mandatory for one in ten hospitals in the United States.1

TEAM is paid under the Medicare Inpatient Prospective Payment System (IPPS) in 188 selected Core-Based Statistical Areas2 (CBSAs). It is one of the latest value-based care (VBC) models from the Center for Medicare and Medicaid Innovation (CMMI).

TEAM is mandatory for 741 hospitals nationwide,3 and hospitals that wish to voluntarily opt in to the model may do so until the end of either their Bundled Payments for Care Improvement (BPCI) or Comprehensive Joint Replacement (CJR) models. TEAM will begin on January 1, 2026, and will run for five years.4

TEAM will apply to five high-volume and traditionally high-margin procedures that are done in the inpatient setting (and reimbursed via Medicare’s Inpatient Prospective Payment System). It will also apply to the outpatient setting for two of the five procedures.

Participants in TEAM will see a discount factor — similar to a rate reduction — retroactively applied to their Medicare reimbursement for almost all Medicare Part A and Part B payments associated with the five included procedures. Physician, therapist, and post-acute care services are included in the model. CMMI finalized a 1.5% discount factor for two of the procedures and a 2% discount factor for the other three5:


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AFTER YOU READ THIS
  • You'll have a better understanding of TEAM.
  • You'll understand how hospitals can prepare for the model's implementation in 2026.
  • You'll have a grasp of the ramifications for stakeholders.

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