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The shift to value-based care is about to get a big push. CMS is launching a new bundled payment model called the Transforming Episode Accountability Model, or TEAM, that will require hospital participation in select areas, creating a new type of reimbursement structure for many procedures.
However, some hospitals have expressed concerns about the model, particularly its mandatory nature and the levels of financial risk required. Many hospitals have also waited to see how the Trump Administration, which has sought major changes to how the healthcare system and its payments work, would support the model.
But the Trump Administration has doubled down on TEAM, meaning hospitals now have less than six months to prepare for model participation.
What is the Transforming Episode Accountability Model (TEAM)?
The Transforming Episode Accountability Model is a mandatory, five-year bundled payment model starting on Jan. 1, 2026. Hospitals in the selected core-based statistical areas tapped by CMS to participate in TEAM will be held accountable for the care quality and costs of Traditional Medicare beneficiaries undergoing certain procedures and for the first 30 days after beneficiaries leave the hospital.