The AHA commented on proposed changes to the Transforming Episode Accountability Model, a new, mandatory, episode-based payment model scheduled to begin Jan. 1, 2026.

The five-year program will require acute care hospitals in selected geographic areas to participate in five surgical episodes. The AHA expressed concerns that the model would not meet its goals of improving quality and lowering costs due to its current design and may hamper access to care instead by overburdening providers who do not have the infrastructure or population to be successful. The AHA requested the Centers for Medicare & Medicaid Services to make TEAM voluntary.

鈥淢andatory participation is inappropriate given that many of the selected organizations are neither of an adequate size nor in a financial position to support the investments necessary to transition to mandatory bundled payment models,鈥 AHA wrote. 鈥淩equiring hospitals to take on large, diverse bundles would require more risk than many can manage, threatening their ability to maintain access to quality care in their communities.鈥

The AHA also recommended other model design changes, including the establishment of a low-volume threshold of 200 cases for individual episode categories. Hospitals not meeting this threshold should be excluded from participation.

Related News Articles

Chairperson's File
Public
The recently enacted One Big Beautiful Bill Act will bring big changes to health care. AHA President and CEO Rick Pollack joined me for a Leadership Dialogue鈥
Headline
The House Ways and Means Subcommittees on Health and Oversight held a joint hearing today to discuss lessons learned, challenges and opportunities to improve鈥
Headline
The AHA today expressed support for the Medicare Mental Health Inpatient Equity Act, a bill that would eliminate the 190-day lifetime limit on inpatient鈥
Headline
The AHA July 8 wrote in opposition to the 鈥淧atient Access to Higher Quality Health Care Act鈥 (H.R. 4002), which would repeal current law banning the creation鈥
Headline
The AHA July 3 released the Health Care Plan Accountability Update for the second quarter of 2025. The update covers the latest developments in Medicare鈥
Headline
The Departments of Justice and Health and Human Services today announced the creation of the DOJ-HHS False Claims Act Working Group to combat health care fraud鈥