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Updated: Mar 27, 2026

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The Medicare TEAM Model: A Strategic Guide for Orthopaedic Surgeons.

Abhinav R Balu1, David Kalainov1, Adam Edelstein1

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|March 24, 2026
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Summary
This summary is machine-generated.

The Medicare Transforming Episode Accountability Model (TEAM) impacts over 700 hospitals with new payment rules for orthopaedic surgeries. Strategic engagement and data infrastructure are crucial for hospital success under this bundled payment model.

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Area of Science:

  • Health Policy
  • Orthopaedic Surgery
  • Healthcare Economics

Background:

  • The Medicare Transforming Episode Accountability Model (TEAM) is a new 5-year payment initiative starting January 1, 2026.
  • This mandatory model affects over 700 U.S. hospitals across five surgical categories, including three in orthopaedics.

Purpose of the Study:

  • To outline the structure and implications of the TEAM payment model for healthcare providers.
  • To emphasize the critical role of orthopaedic surgeons and data infrastructure in navigating the TEAM.

Main Methods:

  • The TEAM model defines a payment period from admission or outpatient procedure to 30 days post-discharge.
  • Payment is determined by a hospital-specific target price, adjusted for demographics and a Composite Quality Score.

Main Results:

  • Hospitals bear financial risk and benefits, with orthopaedic surgeons being key drivers of success.
  • Many hospitals are unprepared, facing heightened financial risk due to high-variability procedures like hip/femoral fracture treatment and spinal fusion.

Conclusions:

  • Strategic engagement between orthopaedic surgeons and leadership is essential for TEAM success.
  • A clear strategic framework and robust data infrastructure are necessary for hospitals to implement and comply with the TEAM model effectively.