Hospital groups seek more time to comment on proposed payment model

The American Hospital Association and the Federation of American Hospitals are asking for more time to comment on CMS' proposed Transforming Episode Accountability Model. 

CMS pitched TEAM in April as part of the inpatient prospective payment system role for fiscal year 2025. CMS is proposing a mandatory model to test whether episode-based payments for five common costly procedures would reduce Medicare expenditures while preserving or enhancing the quality of care. The model could incentivize coordination between providers both during and 30 days after a surgery, and require referral to primary care services to support continuity of care and drive positive long-term health outcomes.

The AHA and FAH said in a May 17 letter to CMS Administrator Chiquita Brooks-LaSure that they are working closely with their hospital and health system members to assess the effects of the proposed role on the "critically important work they do in caring for their patients and communities." 

The groups said they are committed to providing "thought consideration of TEAM, but the scope of the rule is extremely broad."

"For example, the five types of surgical procedures proposed for inclusion in TEAM comprised over 11% of inpatient PPS payments in FY 2023 — a staggering amount that doesn’t even include the outpatient payments that would be part of the model," they said in the letter. "In addition, based on initial feedback, we are concerned that CMS is not providing hospitals with the necessary tools to be successful under the program or appropriately balancing the risk versus reward equation. Additional time beyond 60 days is necessary to fully evaluate and analyze these proposed policies and their full impact across the health care spectrum."

Comments on the rule are due by June 10, but the groups are seeking at least an additional 30 days.

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