Understanding the Transforming Episode Accountability Model

This document is a guide that details the Transforming Episode Accountability Model (TEAM) being launched by the Centers for Medicare & Medicaid Services (CMS) on January 1, 2026. TEAM is a bundled payment model that focuses on five high-cost procedural episodes, including hip and femur fractures, major bowel procedures, coronary artery bypass grafts, spinal fusion, and lower extremity joint replacements. The guide outlines the financial implications for hospitals, noting that mandatory participants may face significant losses unless performance improves. It emphasizes the importance of conducting a structured risk analysis to evaluate exposure under TEAM, requiring access to regional benchmarking data and historical performance data. The document also discusses the necessity for hospitals to analyze episode-level performance and accurately capture patient risk factors to adapt to the new model. With the potential for increased downside risk in subsequent years, the guide serves as a practical resource for hospitals preparing for these changes.