Becker's Healthcare February 3, 2025
The Centers for Medicare & Medicaid Services’ new Transforming Episode Accountability Model (TEAM) represents the most significant mandatory bundled payment program, affecting nearly 750 hospitals across 188 geographic markets. Starting January 2026, this five-year model will require participating hospitals to manage costs and quality for five surgical episodes, including spending 30 days post-discharge.
Here are five key strategic considerations hospital leaders should evaluate:
- Financial Risk Structure Demands Early Preparation. While TEAM provides a one-year “glide path” with no downside risk in 2026, most hospitals must transition to two-sided risk by 2027. Analysis from the Institute for Accountable Care shows potential losses could average $1,350 per episode for hospitals with current above regional benchmarks. Hospital leaders must now analyze their...
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