The global value-based healthcare market comprises healthcare services and payers that are shifting towards value-based payment systems that rewards healthcare providers for focusing on quality of care rather than quantity. Value-based healthcare aims to improve patient outcomes and reduce medical costs by linking payment to quality and coordinated care. Under this payment model, healthcare providers are reimbursed based on patient health outcomes instead of per procedure, with potential bonuses or penalties based on performance measures.
The Global Value-Based Healthcare Market Size is estimated to be valued at US$ 12.18 BN in 2024 and is expected to exhibit a CAGR of 14% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the global value-based healthcare are Baker Tilly US, LLP, Change Healthcare, Athena Healthcare, Curation Health, UnitedHealth Group, McKesson Corporation, Deloitte, Siemens Medical Solutions USA, Inc., Signify Health, Inc. (Sentara Healthcare), Humana, and NXGN Management, LLC. These key players are focusing on alternative payment models, data analytics, and care coordination to transition to value-based care. The emergence of alternative payment models like accountable care organizations, bundled payments, and pay-for-performance models presents substantial opportunities for healthcare providers and payers to shift towards quality and value over volume. Globally, countries are piloting various value-based arrangements and reforms to make healthcare systems more sustainable by linking payments to outcomes rather than fee-for-service. The expansion of value-based payment programs in developing countries also opens up new avenues of growth.
Market drivers
The increasing focus on reducing medical costs and controlling rising healthcare expenditure is a key driver propelling the global value-based healthcare market. Government initiatives and regulations in several countries are encouraging a shift from volume-based to value-based payment which links reimbursements to quality metrics and patient outcomes. Alternative payment models incentivize providers to coordinate and invest in comprehensive care, preventive measures, and chronic disease management to improve health outcomes and curtail unnecessary costs in the long run. Adoption of digital health technologies also facilitates value-based arrangements through improved data collection, outcome reporting, and population health management.
PEST Analysis
Political: Increasing support by governments worldwide through formation of favorable regulations to promote value-based healthcare models. Countries are working towards curbing rising healthcare costs through collaboration between public and private healthcare providers.
Economic: Rising healthcare costs have prompted payers and providers to shift from traditional fee-for-service models to value-based care which links payments to quality and outcomes. This transition aims to improve patient outcomes and lower total cost of care.
Social: Growing prevalence of chronic and lifestyle diseases has increased focus on preventive and proactive care measures. Higher health awareness among patients is driving demand for more affordable and effective care delivery systems.
Technological: Adoption of digital health technologies like telehealth, mHealth, EHR and analytics enables remote monitoring of patients, data sharing between stakeholders, and better management of care quality, costs and outcomes on a large scale.
Geographical Regions with Highest Market Value
The United States accounts for over 50% of the global value-based healthcare market value owing to the presence of major players, favorable initiatives like Medicare Access and CHIP Reauthorization Act (MACRA) and Affordable Care Act (ACA), and a large insured population covered under private and public health plans. Western Europe is the second largest region supported by universal healthcare systems and collaborations between healthcare payers and providers in countries like Germany, United Kingdom and France to curb expenditures.
Fastest Growing Regional Market
The Asia Pacific region is expected to witness the fastest growth during the forecast period driven by expanding medical insurance penetration, increasing prevalence of chronic diseases, growing geriatric population, developing healthcare infrastructure and initiatives by governments in countries like China, India and Australia to shift towards value-based care models to make healthcare affordable and sustainable.
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