Why Hospitals Need a Home-Based Physical Therapy Partner to Succeed Under the 2026 TEAM Model

In January 2026, the CMS Transforming Episode Accountability Model (TEAM) will go into effect, holding hospitals financially accountable for the entire episode of care surrounding musculoskeletal procedures — including post-discharge recovery. This blog explores why home-based outpatient physical therapy is essential for hospitals to succeed under TEAM and how the right PT partner can improve outcomes, reduce readmissions, and help manage episode cost.

Luna

By Luna , Reviewed by Terry Hanisko

Key Takeaways

  • The TEAM Model shifts risk to hospitals for the full episode of care, including post-acute services.
  • Home-based outpatient PT improves adherence, reduces readmissions, and supports functional recovery.
  • A scalable, tech-enabled PT partner helps hospitals manage risk and improve TEAM performance metrics.

In January 2026, CMS will launch the Transforming Episode Accountability Model (TEAM), a mandatory bundled payment initiative that will reshape how participant hospitals are reimbursed for common procedures like joint replacements, spinal fusions, and hip fracture repairs. Under TEAM, a participant hospital’s financial success will be directly tied to the quality, cost, and coordination of care across the full episode — including the first 30 days after discharge.

To thrive in this new model, hospitals must rethink their post-acute strategy. And that starts with outpatient physical therapy delivered in the home. Here are three reasons why now is the time to secure a trusted home-based PT partner:

1. Post-Discharge Care is Your New Risk Zone

Under TEAM, hospitals are financially responsible for every Medicare patient who stays or has surgery in their facility, not only during their stay, but for every downstream service for 30 days post. Hospital quality will be based on readmissions, patient reported outcomes, and safety/adverse events. The first 30 days post-discharge are critical. If patients don’t adhere to physical therapy, or if care is fragmented, the hospital may pay the price.

A home-based outpatient PT partner ensures that recovery doesn’t fall through the cracks. By meeting patients where they are, physical therapists can engage them early, monitor progress in real-time, and intervene before issues escalate.

2. Outpatient in the Home Reduces Readmissions and Boosts Outcomes

Physical therapy is one of the most effective levers for improving recovery, but traditional clinic-based care creates barriers: transportation, scheduling delays, and limited visibility into the patient’s home environment.

Home-based PT removes those barriers. It delivers the same high-quality care — often more effectively — while also supporting social determinants of health. The result: fewer readmissions, faster recovery, and higher functional gains, all of which feed directly into TEAM performance metrics.

3. You Need a Scalable, Integrated PT Partner — Not a Patchwork

Hospitals can’t afford to piece together post-acute care in a bundled payment world. Success under TEAM requires partners who are accountable, tech-enabled, and able to scale across geographies. A modern home-based outpatient PT partner offers:

  • Seamless clinical integration
  • Consistent, reliable communication
  • Real-time data and outcome tracking
  • Proven clinical pathways aligned to MSK procedures
  • Broad geographic coverage across markets
  • A branded, white-labeled patient experience
  • This is no longer optional — it’s a strategic imperative.

The Bottom Line: Outpatient PT at Home Is the First Step to Controlling the Episode

TEAM puts hospitals on the hook for total episode cost and quality. If you don’t control therapy access, you don’t control outcomes — and you don’t control risk. Partnering with a home-based outpatient PT provider ensures patients start recovery strong, stay on track, and avoid costly setbacks.

Now is the time to lock in your outpatient therapy strategy. Let’s talk about how a home-based PT partner can help your hospital win under TEAM.


Luna

Physical therapy, delivered.

Luna is the leading provider of in-home physical therapy, delivering exceptional care to thousands of patients across the country.

Terry Hanisko

Terry Hanisko is the Head of Provider Relations at Luna and a healthcare growth leader with deep expertise in value-based care—particularly in optimizing physical therapy as a strategic lever for improved outcomes and reduced downstream costs. Working at the intersection of digital health, care coordination, and musculoskeletal value transformation, Terry helps hospitals operationalize strategies that align clinical impact with financial performance. With a strong track record of building and scaling sales organizations from the ground up, Terry has also led commercial teams serving both major health systems and large orthopedic provider groups across the U.S.

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