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On January 1, 2026, approximately 700 hospitals across the United States began mandatory participation in the Centers for Medicare & Medicaid Services’ (CMS’) Transforming Episode Accountability Model (TEAM). TEAM is CMS’ new bundled payment model where participants will be taking on financial risk for the costs and quality outcomes of Medicare fee-for-service (FFS) beneficiaries undergoing five surgical procedures:
- Major bowel procedures
- Coronary artery bypass grafts
- Lower extremity joint replacements
- Surgical hip and femur fractures
- Spinal fusions
TEAM episode costs include the procedure (anchor) costs (both facility and professional), along with most costs incurred in the 30 days after discharge, including those for skilled nursing facility (SNF) stays.