---
kind: "section"
citation: "42 C.F.R. § 512.520"
title: "42"
number: "512.520"
heading: "Participation tracks."
url: "https://uscodex.org/cfr/42/512.520"
---

# §512.520. Participation tracks.

- (a) **For performance year 1—**
  - (1) Any TEAM participant may choose to participate in Track 1 or Track 3.
  - (2) The TEAM participant must notify CMS of its track choice, prior to performance year 1, in a form and manner and by a date specified by CMS.
  - (3) CMS assigns the TEAM participant to Track 1 for performance year 1 if a TEAM participant does not choose a track in the form and manner and by the date specified by CMS.
- (b) **For performance years 2 through 5—**
  - (1) CMS assigns a TEAM participant to participate in Track 3 unless the TEAM participant requests to participate in Track 1 or Track 2 and receives approval from CMS to participate in Track 1 or Track 2, with the exception that a TEAM participant cannot request participation in Track 1 for performance years 4 and 5.
  - (2) The TEAM participant must notify CMS of its Track 1 or Track 2 request prior to performance year 2, and prior to every performance year thereafter, as applicable, in a form and manner and by a date specified by CMS.
  - (3) CMS does not approve a TEAM participant's request to participate in Track 1 submitted in accordance with [paragraph (b)(2)](#b-2) of this section unless the TEAM participant is a safety net hospital, as defined in [§ 512.505](/cfr/42/512.505.md), at the time of the request.
  - (4) CMS does not approve a TEAM participant's request to participate in Track 2 submitted in accordance with [paragraph (b)(2)](#b-2) of this section unless the TEAM participant is one of the following hospital types at the time of the request:
    - (i) Medicare-dependent hospital (as defined in [§ 512.505](/cfr/42/512.505.md)) and the Medicare Dependent Hospital program, as authorized by statute, is not expired at the time Track 2 selections are due, as described in [paragraph (b)(2)](#b-2) of this section.
    - (ii) Rural hospital (as defined in [§ 512.505](/cfr/42/512.505.md)).
    - (iii) Safety Net hospital (as defined in [§ 512.505](/cfr/42/512.505.md)).
    - (iv) Sole community hospital (as defined in [§ 512.505](/cfr/42/512.505.md)).
    - (v) Essential access community hospital (as defined in [§ 512.505](/cfr/42/512.505.md)).
  - (5) A TEAM participant who does not notify CMS of its Track 1 or Track 2 request prior to a given performance year in the form and manner and by the date specified by CMS or who is not a safety net hospital, as defined as defined in [§ 512.505](/cfr/42/512.505.md), or one of the hospital types specified in [paragraph (b)(4)](#b-4) of this section at the time of the request is assigned to Track 3 for the applicable performance year.

## Notes

### Amendments

[89 FR 69914, Aug. 28, 2024, as amended at 90 FR 37204, Aug. 4, 2025]

### Source

Source: 89 FR 69914, Aug. 28, 2024, unless otherwise noted.

### Authority

Authority: 42 U.S.C. 1302, 1315a, and 1395hh.

### Source

Source: 85 FR 61362, Sept. 29, 2020, unless otherwise noted.

### Amendments

[89 FR 69914, Aug. 28, 2024, as amended at 90 FR 37204, Aug. 4, 2025]