Understanding the TEAM Mandate: Top 3 Insights Every Healthcare Leader Should Know

The Transforming Episode Accountability Model (TEAM) is CMS’s latest mandatory value-based care initiative—and it’s going to shake things up.

Starting in 2026, hospitals will be financially responsible for both the cost and quality of care delivered across a 30-day episode. That includes not just what happens inside the hospital, but what happens after the patient goes home.

Sound familiar? Yes. Sound more intense? Also yes.

We’ve seen this story before with CJR, BPCI Advanced, and other bundled payment programs. But the TEAM mandate is different in one major way: the scale. It affects twice as many hospitals and puts four times as much Medicare spending at risk as CJR.

So how should you prepare?

Let’s break it down into the Top 3 insights that matter most right now—based on what CMS has shared, and what leading healthcare orgs (and AJMC) are already talking about.

1. A Shift Toward Total Cost Accountability

In TEAM, hospitals aren’t just responsible for what happens during the inpatient stay. They’re on the hook for everything that happens for 30 days after discharge—from post-acute care to readmissions to complications.

That means discharge planning isn’t just a “check-the-box” task anymore—it’s mission-critical.

To get ahead of this, health systems need to:

• Build closer relationships with post-acute partners

• Ensure transitions of care are standardized and proactive

• Start managing care across the full episode, not just within four walls

  
  

And let’s be honest: this is hard. Patients may not follow discharge instructions. Home health quality varies. Social determinants matter. But under TEAM, it’s all part of your hospital’s risk.

If you don’t have a plan for that yet—it’s time.

2. Data Isn’t a Nice-to-Have—It’s Your New Lifeline

Success in TEAM isn’t just about providing great care—it’s about proving it.

That means data strategy moves from the background to the forefront. You’ll need to:

• Identify high-risk patients before they’re discharged

• Track performance in real time

• Compare your outcomes to CMS benchmarks—and adjust quickly

  
  

If your reporting still runs on lagging indicators or monthly dashboards, you’re going to struggle. The hospitals that thrive under the TEAM mandate will be those that invest in predictive analytics, real-time reporting, and tight operational feedback loops.

The message is clear: You can’t manage what you can’t see. And under TEAM, that visibility needs to be immediate.

3. Collaboration Isn’t Optional—It’s a Strategy

Hospitals can't succeed in TEAM alone. This model depends on tight collaboration across the care continuum.

That means:

• Creating preferred networks with high-performing SNFs and home health providers

• Defining shared quality metrics across teams

• Aligning financial incentives so everyone is rowing in the same direction

  
  

Think of it this way: your patient’s journey doesn’t stop at discharge—and now, neither does your responsibility. If your partners aren’t aligned, your performance under TEAM could tank.

This is where the most innovative hospitals will differentiate themselves. Those that take the time to build trusted partnerships and coordinated care pathways will outperform those trying to go it alone.

Final Thought: TEAM Isn’t Just a Mandate. It’s a Turning Point

Let’s be real: there’s always skepticism when a new CMS model rolls out. But the TEAM mandate isn’t just another experiment—it’s a strong signal about where value-based care is going.

Hospitals that prepare now—by investing in care coordination, real-time data, and strategic provider networks—will be the ones setting the pace for the rest of the industry.

You don’t have to love the mandate—but you do have to lead through it.

Let’s navigate it together.

👉 Want more resources? Join the conversation inside #TEAMConnect.