The five covered episode categories — LEJR, surgical hip and femur fracture, spinal fusion, CABG, and major bowel procedures — how total episode cost is measured against a target price, the quality measures that ride alongside it, and the 3-day SNF stay waiver most hospitals have not yet put to deliberate use.
Whitepaper
Winning Under TEAM: A Data-Driven Blueprint for Care Transition Excellence
724 hospitals are now financially accountable for the 30 days after a patient leaves the operating room — 874,000 episodes a year, 11% of all Medicare FFS inpatient volume. Nationally, nearly four in ten inpatient discharges are instructed to enter post-acute care. And the claims data says the difference between beating a target price and missing it isn’t how sick the patient was. It’s how well the handoff was executed.
- 39.2% Share of Medicare FFS inpatient discharges instructed to enter post-acute care
- 94.1% U.S. counties where the number of home health agencies serving FFS patients declined or held flat, 2019–2023
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The Problem
Under TEAM, execution is the variable — not acuity
TEAM measures total episode cost against a target price, plus quality outcomes including avoidable readmissions and ED utilization, for 30 days after discharge. Analysis of 100% of Medicare FFS claims through 2025 Q2 points to one consistent finding across all five covered episode categories: performance variation is driven by the operational execution of care transitions, not by clinical complexity.
- Fragmented referral workflows, limited post-acute visibility, and delayed placements are the primary sources of avoidable cost and readmission exposure — the controllable half of TEAM performance.
- Post-acute adherence correlates inversely with length of stay in every TEAM category — as strong as −0.63 in CABG and −0.47 in lower extremity joint replacement. Hospitals whose patients actually begin post-acute care as planned have shorter inpatient stays.
- Capacity is contracting while accountability expands. Home health visits per patient day fell 17.3% between 2017 and 2023, and FFS home health admissions declined in 83.3% of U.S. counties. Hospitals can no longer rely on available capacity at the moment of discharge.