On July 31, the Centers for Medicare and Medicaid Services (CMS) finalized updates to the Transforming Episode Accountability Model (TEAM) in the federal fiscal year 2026 Inpatient Prospective Payment System (IPPS) final rule . TEAM, a mandatory Medicare bundled payment initiative launching Jan. 1, 2026, was first introduced in the FFY 2025 IPPS proposed rule. 745 hospitals will advance into TEAM in the beginning of the year – 735 hospitals located in a Core-Based Statistical Area (CBSA) chosen for mandatory participation and 10 hospitals that have voluntarily opted into the model. Earlier this year, CMS proposed changes to TEAM and sought feedback from hospitals, associations and other stakeholders. The final rule now cements those updates — changes that will directly impact TEAM participation requirements, quality measurement, payment methodologies and care delivery strategies. Any future model changes will go through the same rulemaking process. Key T...