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Table of Contents
Why this and why now
Where the old suppliers went
What the business actually does
Sizing it without lying
Who pays and why they pay
The preseed: five million dollars and twelve months
Weeks one through eight
Months three through six
Months seven through twelve
The milestones that unlock the mega seed
What the twenty five million buys
Where it breaks
Table of Contents
Roughly 742 hospitals are in a mandatory CMS bundled payment model for five surgical episodes, and on January 1, 2027 the model flips from its initial upside‑only year to three participation tracks, with most urban hospitals moving into Track 3 with up to 20 percent two‑sided risk.
The bundled payment operator industry that hospitals relied on a decade ago was bought by payers and either dissolved or turned inward, so a majority of TEAM hospitals are entering downside risk with no operating partner and a consultant’s spreadsheet.
The business is a tech enabled episode operating company that manages the 30 day post discharge window, administers physician and post acute gainsharing, runs the documentation program that sets target prices, and, at the seed stage, sells downside protection backed by its own capital.
The near term revenue pool is a share of a savings opportunity in the high hundreds of millions per year across TEAM alone, growing with each mandatory model CMS adds, starting with the specialist model that goes live the following year.
A five million dollar preseed should buy twenty hospitals under contingency contract before the risk switch, twelve thousand episodes under management, and measured operational results on the metrics that drive reconciliation.
The twenty five million dollar seed capitalizes the downside guarantee, which is the product that turns a services vendor into the entity every mandatory model hospital has to call.
