As hospitals prepare for CMS’s Transforming Episode Accountability Model (TEAM), the coming shift in reimbursement will test one foundational capability: a hospital’s ability to document precisely, completely, and in real time.
Documentation isn’t just about recordkeeping. And in a value-based reimbursement model like TEAM, it can be the main driver for revenue protection.
Understanding CMS’s TEAM Model
TEAM is CMS’s next-generation value-based reimbursement model, designed to expand bundled payments and improve care coordination. TEAM will cover five major surgical episodes, including joint replacement, spinal fusion, and select cardiac procedures. Starting January 1, 2026, it will require mandatory participation for selected hospitals in designated core-based statistical areas (CBSAs).
Under TEAM, hospitals will continue to bill Medicare using fee-for-service, but CMS will retrospectively reconcile total spending against a pre-assigned target price for each episode. If the total cost per episode stays below that price with strong outcomes, then hospitals can keep the differential savings. After Year 1, hospitals in a downside-risk track that go above the target cost may face repayment to CMS.
The model’s goal is simple but transformative: align financial incentives across providers, tie payment to quality and efficiency, and hold hospitals accountable for the total cost of care throughout the surgical episode and 30 days post-discharge.
On paper, that looks like a cost-control challenge. In practice, it’s a documentation challenge.
Why Documentation Is the Hidden Driver of Reimbursement
Every implant, supply, service, and post-acute intervention adds to the total cost of a surgical episode. If usage isn’t properly captured, hospitals face three critical risks:
- Reimbursement loss: Missed or incomplete documentation can lead to lower reconciliation payments or audit adjustments.
- Target price overruns: Inaccurate product capture limits the ability to monitor and adjust costs during the episode period.
- Weaker risk adjustment: Incomplete patient data can reduce your target price, even when treating complex cases.
Consider two hospitals performing the same joint replacement. Both deliver excellent outcomes, but only one captures every implant and supply in real time. That hospital can validate its episode costs, demonstrate efficiency, and secure shared savings. The other faces reconciliation losses simply because its data doesn’t tell the full story.
Even hospitals that thrive under fee-for-service often struggle to track product use and to link clinical and supply chain data in real time. Under TEAM, those gaps directly affect cost reporting, target pricing, and quality performance. Without accurate hospital documentation, hospitals may not be able to defend their costs or their outcomes.
Documentation as a Strategic Imperative
Documentation is often viewed as an administrative task. Under TEAM, though, it’s a foundational pillar of financial performance, alongside care redesign, clinical efficiency, and supply management.
Hospitals that treat documentation as a strategic capability will be positioned to:
- Accurately measure and manage episode costs in real time
- Secure fair reimbursement by ensuring risk adjustment reflects true patient complexity
- Demonstrate efficiency and quality in value-based reimbursement models
This is where alignment matters. Clinical teams must capture product use in real time, supply chain leaders must ensure cost data is accurate, and finance must reconcile usage with claims. Documentation for value-based reimbursement models isn’t siloed in one department but is enterprise-wide, especially when TEAM covers an entire episode of care and requires provider collaboration, continuity of care, and focus on positive long-term outcomes.
How IDENTI Empowers Hospitals to Succeed Under TEAM
IDENTI’s digital platform eliminates documentation blind spots by automatically capturing every implant, device, and supply at the point of care and linking it directly to the patient, physician, and procedure. With clean, automated data, hospitals can:
- Reconcile usage and costs instantly
- Strengthen audit readiness and defend reimbursement
- Enable analytics that reveal cost and utilization trends
- Align supply chain, finance, and clinical teams on one unified dataset
In a value-based care documentation environment, automation is essential. With tools like Snap&Go, hospitals can meet the TEAM bundled payment model requirements confidently and protect every dollar earned.
Preparing for the Future of Value-Based Reimbursement in Healthcare
TEAM’s launch marks a turning point in how hospitals approach reimbursement. Those that invest now in real-time documentation and analytics will enter 2026 ready to manage costs, prove value, and protect margins.
For hospital leaders, the strategy is clear:
- Treat documentation as a financial function, not an administrative one
- Break down silos between clinical, supply chain, and finance data
- Leverage automation to ensure every charge, implant, and supply is captured accurately
- Ensure care pathways, provider alignment, and audit readiness accompany documentation accuracy
In value-based reimbursement models, precision = performance , and under TEAM, documentation can make or break a hospital’s financial success.
For healthcare leaders navigating this transformation, one truth stands out: to succeed under TEAM, you must start by treating documentation as a core business strategy.
Contact us today to learn how your hospital can prepare for TEAM and maximize value-based reimbursement.
