The AHA expressed concerns June 10 to the Centers for Medicare & Medicaid Services about its proposed Transforming Episode Accountability Model (TEAM), saying it "is proposing to mandate a model that has significant design flaws, and as proposed, places too much risk on providers with too little opportunity for reward in the form of shared savings, especially considering the significant upfront investments required." The proposed mandatory payment model would bundle payment to acute care hospitals for five types of surgical episodes, which comprise over 11% of inpatient prospective payment system payments (not including outpatient payments that would also be at risk in the model). The association urged CMS to make model participation voluntary, reduce the discount factor from 3% to no more than 1%, and make several significant changes to design elements, otherwise CMS should not implement the model. “If CMS cannot make extensive changes to the model, it should not implement it at this time,” AHA wrote. “To do so would make TEAM no more than a thinly disguised payment cut, as it fails to provide hospitals a fair opportunity to achieve enough savings to garner a reconciliation payment.”

Related News Articles

Headline
The Senate Committee on Health, Education, Labor and Pensions Oct. 23 held a hearing discussing the 340B Drug Pricing Program and its growth and impacts on…
Headline
The Centers for Medicare & Medicaid Services has released an operational guide for Medicare-enrolled providers and suppliers on the Wasteful and…
Headline
The U.S. District Court for the District of Rhode Island Sept. 30 denied motions from AbbVie and Novartis seeking a preliminary injunction against the state’s…
Headline
The anticipated burdens on hospitals to comply with the Health Resources and Services Administration’s 340B Rebate Pilot Program far exceed the agency’s…
Headline
Ashley Thompson, AHA senior vice president of public policy analysis and development, participated in a panel discussion during Modern Healthcare's Leadership…
Headline
The U.S. District Court for the District of Maine today issued an order denying preliminary injunctions requested by AbbVie and Novartis in legal challenges…