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The key to TEAM success in HME: Building referral networks (part two)
The Centers for Medicare & Medicaid Services (CMS) is rolling out the Transforming Episode Accountability Model (TEAM), a mandatory bundled payment program starting January 1, 2026.
In part one of our blog series about referral networks under the TEAM model, we explained how HMEs who already have established referral networks with hospitals can strengthen their appeal to hospitals through transparency about outcomes and a commitment to data-driven care.
But not every HME provider has longstanding hospital relationships. If you are a provider still building your referral network, don’t be discouraged. Instead, be proactive. In this blog, we explain the steps you can take to set yourself up for success under the CMS TEAM model, using a scenario that focuses on HME specialists still building hospital connections.
Emerging referral networks scenario: Build and attract
TEAM’s arrival creates an opening for HME providers to get a foot in the door, because hospitals in the selected regions must seek high-quality post-acute partners. Your mission is to become an attractive TEAM partner from the ground up. This involves showcasing your value through HME data, reaching out to the right people, and investing in tools that prove you’re serious about value-based care.
Start by crafting a data-supported value proposition for your HME. Gather evidence of your quality and cost-effectiveness. How do your outcome metrics (rehospitalization rate, average length of stay, therapy utilization, etc.) compare to state or national averages? If you participate in any quality initiatives or have low hospital readmit rates, highlight those.
Essentially, create a one-page profile or packet that says: “Here’s why partnering with us helps hospitals succeed under TEAM.” Here are some examples of what to highlight about your DME:
- Faster, safer discharges: Delivery within 24–48 hours, weekend coverage, and bedside fit/teach allow for timely discharge.
- Fewer avoidable returns: Our 30- to 90-day post-discharge playbook reduces equipment-related ED visits and readmissions, directly supporting your TEAM performance.
- Proven adherence = better outcomes: We track and coach adherence, identify non-use early, and coordinate with your care team to keep patients on therapy.
- Documentation done right: Clean, complete documentation and prior-auth support that minimize denials and rework, lowering episodic administrative burden.
- Seamless coordination: We integrate orders and status updates into your discharge workflow and communicate proactively with case management and home health partners.
- Enhanced STAR ratings: Help ratings by offering reduced readmissions, improved care transition, data sharing and interoperability, TEAM quality measure support, and a better patient experience.
Use hard data to make the case that sending patients to your HME will save money and improve outcomes, which is exactly what TEAM hospitals need to hear.
Next, be deliberate in your outreach. Identify hospitals in your vicinity that are on the CMS TEAM participant list.
Focus on those in your region, especially if you are in or near one of the mandatory regions selected by CMS to participate in TEAM. It may also be strategic to look at hospitals that volunteered for similar models (like CJR or BPCI-A), as they would have experience in managing surgically bundled, episodic cases.
Once you have your target list, launch targeted outreach. Contact the care coordination department, discharge planners, or the designated TEAM coordinator at those hospitals. Share your value proposition and express enthusiasm about collaborating under TEAM.
Make it clear you understand their challenges and are ready to help manage post-surgical patients effectively. This could take the form of an introductory email with your quality summary, followed by a phone call or meeting to discuss how your HME can support their goals.
By proactively introducing yourself as a ready-and-willing TEAM partner, you may earn a spot in their preferred network (or at least an invitation to prove yourself with a few referrals).
Key strategies for emerging referral networks
As you build from the ground up, focus on these three strategies:
- Demonstrate value in reducing readmissions
Hospitals are under pressure to lower readmission rates, especially under Medicare and value-based payment models. DMEs can position themselves as strategic partners by:
- Offering equipment and services that support recovery and prevents complications (fall prevention, therapy adherence)
- Providing patient education and follow-up services to ensure patient engagement and proper equipment use
- Sharing data on how their services contribute to better outcomes and fewer hospital readmissions
- Streamline care transitions and interoperability
Smooth transitions from hospital to home or other post-acute settings are critical. DMEs should:
- Integrate with hospital EHR systems to enable real-time data sharing and reduce delays
- Minimize intake time by avoiding redundant documentation and automating order processes
- Ensure rapid delivery and setup of equipment to avoid discharge delays and improve patient satisfaction
- Build collaborative relationships and reliability
Hospitals want partners they can trust. DMEs should focus on:
- Consistent communication with discharge planners, case managers, and care coordinators
- Being responsive and flexible to urgent needs, especially for high-acuity patients
- Participating in joint planning and quality improvement initiatives to align with hospital goals
For example, if your billing system can integrate with the hospital’s system to provide immediate updates on a patient’s progress, mention that capability. It shows you’ll make their life easier with better coordination.
Equip your team with the technology (and training) to excel under TEAM and advertise those capabilities. Hospitals are more likely to collaborate with HMEs that “speak their language” in terms of data and care coordination.
The key is to demonstrate value and proactivity. Hospitals in TEAM will be looking for allies they can trust. If you show up with strong data, a collaborative attitude, and the tech stack to deliver results, you can secure a spot in the referral network.
Over time, as you prove yourself with each referred patient, your relationship with the hospital will strengthen, leading to sustained referrals.
Be proactive and partner up
The introduction of the TEAM model is a watershed moment for hospital-HME collaboration. It’s no longer enough for HMEs to passively receive referrals, you must actively cultivate and manage your referral network.
Whether you’re bolstering an existing hospital partnership or forging a new one, the message is the same: demonstrate your value as a TEAM partner.
Hospitals are in the driver’s seat on mandatory bundles, but they cannot succeed alone. They need dependable post-acute partners to achieve quality and financial targets.
As an HME provider, this is your chance to step up and shine. And Brightree can help you get there.
Request a demo today for a closer look at Brightree.
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Jim Chiakulas
Jim is an experienced healthcare leader with deep expertise in value-based care and population health. He has worked across a range of market segments, giving him a comprehensive understanding of the healthcare landscape.
At Resmed, Jim focuses on building and nurturing payor and strategic partner relationships. He identifies opportunities to guide customers through the complexities of payor and payor-intermediary landscapes while demonstrating the value our providers and partners consistently deliver to payors and stakeholders across all business verticals.
Brightree provide solutions to post-acute care providers (HME, DME & pharmacy home infusion).
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