Hospitals Warn of Medicare Pilot’s Burden on Safety-Net Clinics

A new mandatory payment model that promises bonuses to hospitals that save money on costly surgeries is facing backlash over concerns it will unfairly burden rural and safety-net facilities that don’t have the financial resources to implement the changes.

The Transforming Episode Accountability Model, introduced under the Center for Medicare & Medicaid Services fiscal 2026 Inpatient Prospective Payment System final rule, will hold hospitals in select geographic areas accountable for controlling costs associated with popular procedures such as coronary artery bypass grafts, lower extremity joint replacement, major bowel procedures, surgical hip/femur fracture treatments, and spinal fusions.

Starting Jan. 1, ...