The CMS Transforming Episode Accountability Model (TEAM) is set to take effect on January 1, 2026, and selected hospitals must act swiftly to prepare for participation in this mandatory initiative. Leveraging our extensive experience in guiding hospitals through the Bundled Payments for Care Improvement (BPCI), BPCI Advanced (BPCI-A), and Comprehensive Care for Joint Replacement (CJR) models, we have identified key strategies for success that providers can implement to help improve their performance and incentives within TEAM.
What Is TEAM?
TEAM creates a retrospective 30-day bundled payment for five high-volume procedures:
- Lower extremity joint replacement (LEJR)
- Surgical hip and femur fracture treatment (SHFFT)
- Coronary artery bypass graft (CABG)
- Spinal fusion
- Major bowel procedure
Approximately (740 Inpatient Prospective Payment System IPPS) hospitals are mandated to participate based on the core-based statistical areas in which they are located. In addition, those hospitals currently participating in the CJR and BPCI-A models may opt in to TEAM.
More information about TEAM, including recent updates from the fiscal year 2026 IPPS proposed rule, is available here.
Keys to Success
For years, Forvis Mazars has helped guide healthcare providers to success in bundled payment models, including BPCI, BPCI-A, CJR, the Oncology Care Model, and the Enhancing Oncology Model. Through this experience, we have identified fundamental strategies that contribute to strong performance under value-based payment frameworks.
With TEAM set to launch in a matter of months, hospitals must assess their strengths and gaps to establish the necessary foundations for success. Below are the key operational traits organizations should prioritize when preparing for TEAM participation.
- Clear Priorities & Defined Goals: Bundled payment models introduce multiple variables that influence financial and clinical outcomes, making it challenging for hospitals to determine where to focus their efforts. Successful organizations establish clear priorities and measurable goals, allowing them to track performance and direct improvement initiatives toward the most high impact areas. Internal outcome measures and operational benchmarks help guide strategic decisions, assisting hospitals in achieving efficiency and cost savings.
- Dedicated Personnel for Bundle Management: Hospitals and health systems that assign dedicated personnel to oversee bundled payment initiatives typically experience greater success. Effective bundle managers take ownership of the program, deeply understand patient-level claims data, and coordinate efforts across departments to improve performance. Without clearly defined leadership, hospitals may struggle to align workflows and achieve positive results.
- Early Engagement & In-Depth Education: Proactive engagement and education are critical to help providers understand the nuances of TEAM. Hospitals should implement structured training programs to equip all stakeholders—from executives to frontline surgeons—with foundational knowledge before the model launches. Continuous education and reinforcement help staff integrate best practices into daily operations and support long-term program success.
- Leveraging Existing Initiatives & Resources: Many hospitals already participate in value-based care programs, providing opportunities to repurpose existing infrastructure for TEAM. Rather than creating entirely new systems, organizations should analyze current programs to identify overlap and streamline resource allocation. Hospitals that integrate TEAM into existing value-based care initiatives can improve efficiency while reducing redundant efforts.
- Patient Identification During Anchor Procedure: Early identification of TEAM beneficiaries is essential for hospitals to implement targeted interventions. Recognizing high-risk patients before or during their anchor event allows care teams to adjust post-surgical care plans accordingly, helping improve patient outcomes and reduce avoidable costs. The earlier these interventions occur, the greater the likelihood of success.
- Strategic Post-Acute Care & Discharge Planning: Post-acute care (PAC) providers play a vital role in determining the success of bundled payment models. Hospitals that cultivate strong relationships with PAC partners facilitate seamless transitions, reduce unnecessary utilization, and enhance collaborative decision making. PAC alignment with hospital goals promotes more effective discharge planning, improved patient recovery, and reduced readmission rates.
- Physician Engagement & Alignment: Value-based payment models thrive on physician engagement. Hospitals that foster regular collaboration, define shared goals, and establish transparent performance metrics create an environment where providers feel invested in program success. Developing incentive structures that reward physician participation in bundle management further reinforces alignment and helps drive improvements in care quality and efficiency.
- Risk Adjustment & Target Price Methodology: Securing appropriate target prices through accurate risk capture is one of the most effective ways for hospitals to improve financial outcomes under bundled payment models. Organizations should implement structured processes to help ensure risk coding reflects patient complexity, supporting accurate reimbursement while maintaining compliance with TEAM regulations. A well-defined risk adjustment strategy helps hospitals align incentives with real-world patient acuity.
- Ongoing Performance Monitoring & Data Analytics: Hospitals must continuously monitor performance metrics to refine their strategies in response to evolving trends. Regular leadership discussions focused on data analysis allow organizations to identify opportunities for improvement and make informed adjustments to bundle management efforts. A proactive approach to analytics helps hospitals remain agile and responsive to challenges within TEAM.
- Navigating Uncontrollable Methodology Elements: Certain aspects of bundled payment methodology, such as target price adjustments, are beyond hospital control. Organizations that develop a deep understanding of TEAM’s structure, including external pricing factors, will be better positioned to navigate uncertainties and improve performance within the constraints of the program.
How Forvis Mazars Can Help
Navigating the complexities of TEAM requires a deep understanding of its evolving variables and their impact on provider performance. With years of experience in bundled payment models, Forvis Mazars has developed proven strategies to help guide healthcare organizations through successful implementation. The key insights above provide a solid foundation for hospitals and health systems to develop and maintain regulatory excellence, financial discipline, and strategic agility in their approach to TEAM. If you’d like to learn more about how Forvis Mazars can help your hospital adapt and succeed in TEAM and other value-based care programs, reach out to a professional on our team today.