AHA Urges CMS to Make Transforming Episode Accountability Model Voluntary
The American Hospital Association (AHA) has called on the Centers for Medicare & Medicaid Services (CMS) to make the Transforming Episode Accountability Model (TEAM) voluntary. TEAM is a bundled payment model that aims to improve care coordination and reduce costs for episodes of care. In a letter to CMS Administrator Seema Verma, AHA President and CEO Rick Pollack expressed concerns that the mandatory nature of TEAM would create undue burden on hospitals and providers. He argued that the model should be voluntary to allow healthcare organizations to participate on a level playing field. “Hospitals and health systems are fully committed to improving the quality and efficiency of care for patients,” Pollack wrote. “However, we believe that a voluntary approach to TEAM would better align with our shared goals.” Pollack cited several reasons why AHA believes TEAM should be voluntary: *
Burden on Healthcare Organizations:
The mandatory nature of TEAM would impose significant financial and operational challenges on hospitals and providers, particularly those in smaller or rural communities. *
Limited Data Availability:
Many hospitals and providers do not have access to the necessary data to participate effectively in TEAM. This could create inequities and disadvantages for organizations that lack the resources to invest in data infrastructure. *
Need for Flexibility:
Healthcare markets vary significantly across the country. A voluntary approach would allow hospitals and providers to tailor their participation in TEAM to their specific needs and circumstances. AHA also expressed support for CMS’s proposed changes to TEAM, including the elimination of the quality bonus, the extension of the model period, and the reduction in the number of episodes included in the model. However, the association maintained that these changes alone would not alleviate the concerns surrounding the mandatory nature of the program. CMS has not yet responded publicly to AHA’s request. However, the agency is expected to make a final decision on the future of TEAM in the coming weeks.The American Hospital Association (AHA) expressed concerns about the proposed Transforming Episode Accountability Model (TEAM) put forth by the Centers for Medicare & Medicaid Services on June 10. The association stated that the model contains significant design flaws and, in its current form, poses excessive risks with insufficient opportunities for reward in the form of shared savings for providers, especially considering the substantial upfront investments required.The American Hospital Association (AHA) expressed concerns about the proposed Transforming Episode Accountability Model (TEAM) put forth by the Centers for Medicare & Medicaid Services on June 10. The association stated that the model contains significant design flaws and, in its current form, poses excessive risks with insufficient opportunities for reward in the form of shared savings for providers, especially considering the substantial upfront investments required. The AHA urged CMS to make participation in the model voluntary, reduce the discount factor from 3% to no more than 1%, and implement significant changes to the design elements. Failure to do so, the association argued, would render the model ineffective. The AHA further emphasized that TEAM should not be implemented in its current state as it would essentially amount to a thinly veiled payment reduction rather than a genuine opportunity for providers to realize savings and secure reconciliation payments.
The American Hospital Association (AHA) is urging the Centers for Medicare & Medicaid Services (CMS) to make the Transforming Episode Accountability Model (TEACM) voluntary. The AHA argues that the mandatory nature of the program is creating unnecessary burdens on hospitals and is not in the best interests of patients. The TEACM program is a value-based payment model that aims to improve the quality and efficiency of care for Medicare beneficiaries. Under the program, hospitals are held accountable for the total cost of care for patients during a specified episode of illness, such as a heart attack or a stroke. The AHA argues that the mandatory nature of the program is creating unnecessary burdens on hospitals. The association says that hospitals are required to invest significant resources in order to participate in the program, and that the program’s complex payment structure is difficult to administer. The AHA also argues that the program is not in the best interests of patients. The association says that the program’s focus on cost reduction could lead to care being rationed and could ultimately harm patients. The AHA is urging CMS to make the TEACM program voluntary. The association argues that this would allow hospitals to choose whether or not to participate in the program, and would reduce the burden on hospitals. The AHA also argues that making the program voluntary would allow hospitals to focus on providing high-quality care for their patients. CMS is currently considering the AHA’s request. The agency is expected to make a decision on the future of the TEACM program in the coming months.
