The Final Countdown: Why TEAMWell Is the Key to Hospitals’ Success Under TEAM
It’s hard to believe we’re less than a month away from 2026—and with it, the official launch of the CMS Transforming Episode Accountability Model (TEAM). What once felt like a distant proposal is now a reality. CMS has issued its final rule, and hospitals across the country need to prepare accordingly.
TEAM is a mandatory value-based payment model that links reimbursement to the cost and quality of 30-day surgical episodes, with the goal of improving care coordination and patient outcomes.
The time for speculation is over. TEAM is here.
What’s Changed?
In the final ruling, much of the TEAM mandate remained the same, but there were a few new requirements, effective October 1, 2025, which will impact the program including:
- A limited deferment period for certain hospitals.
- A neutral score for hospitals that don’t generate enough quality data for analysis.
- Broader waivers for skilled nursing facilities.
- Use of patient-reported outcomes to assess quality, with downside risk eliminated for low-volume hospitals that don’t meet the 31-episode threshold.
These details may sound procedural, but every adjustment must be accounted for to ensure compliance and capture the opportunities TEAM presents.
While these changes may seem incremental, they add to an already demanding set of requirements, fueling growing concern across the hospital community about readiness.
Hospital Sentiment: Concern Is Growing
According to Fierce Healthcare, hospitals have expressed doubts about TEAM’s feasibility, especially for low-resource systems. There’s a concern that hospitals aren’t prepared for the new model and underestimate the scope of work necessary to be successful.
The American Hospital Association (AHA) was quoted in the article saying:
“The AHA has long supported widespread adoption of meaningful, value-based and alternative payment models to deliver high-quality care at lower costs. We remain worried that [TEAM] will not advance these objectives and puts at particular risk hospitals that are not of a large enough size or in a position to support the investments needed.”
In truth, hospitals that can’t ramp up to managing full episodes face real consequences. The process is complex, resource-intensive, and time-consuming. Without the right foundation, TEAM could expose health systems to millions in penalties each year.
The TEAMWell Solution
The good news is that it’s not too late. The first year of TEAM offers upside-only risk, giving hospitals a chance to get it right. This is your window to lay the groundwork, avoid costly missteps, and transform potential penalties into powerful incentives.
That’s why we created TEAMWell, part of Deacon Health’s Thrive Suite of products. TEAMWell combines the guidance of experienced care coordinators with an AI-powered platform that empowers teams to work smarter, intervene earlier, and deliver truly patient-centered care. It’s purpose-built to help hospitals succeed under TEAM by making Year 1 the foundation for long-term success in value-based care.
A TEAMWell Use Case: James’ Journey:
Consider a hypothetical patient experience: James is a 65-year-old retired construction worker with severe knee osteoarthritis requiring total knee replacement. Like many patients, James’ biggest worry was how surgery and recovery would affect his ability to enjoy retirement.
Here’s how TEAMWell changed the experience:
- Referral: James entered the MSK (musculoskeletal) Managed Care program through his acute care hospital.
- Care Coordinator: A Deacon patient coordinator prepared him for surgery, ensuring he understood the procedure and expectations.
- Therapy: Post-surgery, coordinators monitored his rehabilitation, physical therapy, medication, and pain management.
- Intervention: When James reported rising pain and considered an ER visit, his coordinator reviewed his medication plan, arranged an adjustment, and prevented an unnecessary emergency visit.
- Follow-Up: Weekly check-ins ensured adherence to recovery guidelines and flagged potential complications early.
Discover why our evidence-based approach to care coordination results in 93.8% patient satisfaction.
The Bottom Line:
TEAMWell’s impact extends far beyond the individual. Every successful recovery, seamless transition, and avoided readmission directly strengthens TEAM performance, optimizes resources, and protects margins.
- Reduced Readmissions: 4% vs. the 10–15% national average.
- Improved Transitions of Care: Seamless inpatient-to-outpatient shift.
- Data Transparency & Reporting: Real-time metrics and risk flagging.
- Optimized Bed Utilization: Faster, smoother discharges.
James’ story is just one example, but it highlights what TEAMWell delivers at scale: better outcomes, stronger compliance, and significant financial impact.
Learn more about how our 24/7 care coordination model improves hospital metrics.
The Countdown Is On
With the right partner, uncertainty becomes opportunity. TEAMWell provides the blueprint for long-term success under TEAM.
Don’t wait until January to find out if you’re ready. Make every day count with TEAMWell.