CMS TEAM Model: What Hospitals Need To Know About The Mandatory Bundled Payment Rule

Persivia Inc16 Jul, 2025Health

The CMS TEAM Model launches January 1, 2026, forcing 741 hospitals nationwide into a mandatory bundled payment system. Unlike the fee-for-service payment, hospitals now have a monetary stake in the outcomes attached to patient results during the surgery and 30 days after discharge in five surgical procedures. Medicare will reduce reimbursements by 1.5-2% of the participating hospitals (which include 6% of all Medicare inpatient volumes).