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Participants in Medicare's New Mandatory Bundled Payment Program
Joshua M Liao1,2, Yixin Tang1, Danielle S Browne1,2
1Department of Internal Medicine, University of Texas Southwestern Medical Center, Dallas, Texas, USA.
Population Health Management
|May 28, 2026
Summary
Medicare's new mandatory bundled payment program, the Transforming Episode Accountability Model (TEAM), may offer generalizable insights. While TEAM markets are similar to non-participating ones, participating hospitals differ, potentially broadening insights from bundled payment initiatives.
Area of Science:
- Health economics
- Healthcare policy
- Medical economics
Background:
- Voluntary bundled payment programs face limitations in provider/patient selection and generalizability.
- Mandatory programs like Medicare's TEAM aim to address these limitations for broader impact.
Purpose of the Study:
- To assess the generalizability of findings from the mandatory Transforming Episode Accountability Model (TEAM) program.
- To compare characteristics of markets and hospitals selected for TEAM versus those not selected.
Main Methods:
- Cross-sectional analysis of Medicare data.
- Comparison of structural and population characteristics between TEAM and non-TEAM markets.
- Analysis of hospital characteristics (teaching status, safety-net, profit margin, patient volume) for TEAM and non-TEAM hospitals.
Main Results:
- TEAM markets were larger but similar in structural and population characteristics to non-TEAM markets.
- TEAM hospitals differed from non-TEAM hospitals in teaching status, safety-net status, profit margin, and patient volume.
- Findings suggest TEAM may yield generalizable results across US markets.
Conclusions:
- The TEAM model has the potential to provide generalizable evidence for nationwide bundled payment scaling.
- TEAM may expand the diversity of hospitals participating in bundled payment programs compared to voluntary models.
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