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Rainfall Health

Complete Guide

The CJR-X Model: What Hospitals Need To Know Before 2028

The Comprehensive Care for Joint Replacement Expanded (CJR-X) Model is a mandatory nationwide Medicare episode-based payment model finalized in the FY 2027 IPPS Final Rule on July 31, 2026. It begins January 1, 2028.

CJR-X is a mandatory bundled payment model that makes nearly every eligible acute-care hospital financially accountable for the cost and quality of hip, knee, and ankle replacement episodes from the qualifying procedure through 90 days of recovery.

In This Guide

Guided by the R.A.I.N. Advisory Committee

Rainfall's advisory committee includes health system, policy, and compliance leaders who help shape episode accountability standards for mandatory Medicare models like TEAM and CJR-X.

Meet the full advisory committee

Mandatory Bundled Payments and Hospital Financial Accountability

Hospitals continue billing Medicare fee for service, but CMS later compares episode spending with a quality-adjusted target price. That reconciliation creates direct hospital financial accountability for performance across the full 90-day episode.

  • Status: Finalized in the FY 2027 IPPS Final Rule on July 31, 2026.
  • Start date: January 1, 2028.
  • Participation: Mandatory nationwide for most acute-care hospitals paid under both IPPS and OPPS.
  • Exclusions: TEAM participants, Maryland hospitals, and hospitals not paid under both IPPS and OPPS.
  • Procedures: Eligible hip, knee, and ankle lower-extremity joint replacements in inpatient and hospital outpatient settings.
  • Episode window: The qualifying procedure through 90 days after discharge or the outpatient procedure.
  • Spending: With limited exceptions, related Medicare Part A and Part B services are included.
  • Reconciliation: Annual episode spending is compared with a hospital target price and adjusted for quality.
  • Quality: Hospitals must meet a minimum composite quality score before receiving reconciliation payments.
  • Risk adjustment: 29 adjusters account for hospital and patient complexity.
  • TEAM overlap: Hospitals participating in TEAM are excluded until TEAM ends; eligible hospitals then enter CJR-X.

CJR-X vs TEAM at a Glance

Feature CJR-X TEAM
Start January 1, 2028 January 1, 2026
Scope Hip, knee, and ankle replacements Five surgical episode categories
Window 90 days after discharge/procedure 30 days after discharge
Geography Nationwide, with exclusions Selected hospitals in designated markets

CMS comment letters on CJR-X and TEAM

Last reviewed: August 16, 2026 Primary source: CMS CJR-X Model (cms.gov)