Value-Based Healthcare Services Market accounted for USD 2.35 Billion in 2020 and is expected to reach USD 9.26 Billion by 2028

What is Value-Based Healthcare Services Market?

Value-based healthcare is a method of delivering healthcare in which providers, such as hospitals and physicians, are compensated on the basis of patient health results. Providers are compensated under value-based care agreements for assisting patients in improving their health, reducing the effects and incidence of chronic disease, and living healthier lives in an evidence-based manner.

Value-based care is distinct from fee-for-service or capitated care, in which providers are compensated according to the volume of healthcare services delivered. The term “value” in value-based healthcare refers to the process of comparing health outcomes to the cost of delivering them.

What are the Advantages of a Value-Based Healthcare Delivery?

Patients, providers, payers, suppliers, and society as a whole all benefit from a value-based healthcare system.

• Patients spend less money in order to improve their health. For patients, managing a chronic disease or condition such as cancer, diabetes, hypertension, COPD, or obesity can be costly and time-consuming. Value-based care approaches are centred on assisting patients in recovering more quickly from diseases and accidents and avoiding chronic disease in the first place. As a result of improved short- and long-term health, patients encounter fewer doctor visits, medical tests, and procedures, and spend less money on prescription medicine.
• Providers improve their efficiency and patient happiness. While doctors may be required to spend additional time on new, prevention-oriented patient treatments, they will spend less time managing chronic diseases. When the emphasis is on value rather than number, quality and patient engagement metrics improve. Furthermore, suppliers are not exposed to the financial risk inherent in capitated payment systems. Even for-profit providers capable of generating a higher value per episode of care stand to benefit from a value-based care model.
• Payers manage costs and risk. By dispersing risk among a wider patient group, it can be mitigated. A healthier population with fewer claims means that payers’ premium pools and investments are less depleted. Additionally, value-based payment enables payers to improve efficiency by combining payments that cover the patient’s whole care cycle or, in the case of chronic diseases, payments that span a year or more.
• Suppliers price according on patient results. Suppliers profit from the ability to link their products and services to improved patient outcomes and cost savings, a critical selling point as national health spending on prescription pharmaceuticals continues to climb. Numerous stakeholders in the healthcare business are pushing on manufacturers to link drug costs to their true value to patients, a process that is likely to get easier as personalised therapies become more prevalent.
• While reducing overall healthcare spending, society becomes healthier. Less money is spent on chronic illness management, expensive hospitalizations, and medical crises. Value-based care has the potential to dramatically cut overall healthcare costs in a country where healthcare expenditures account for roughly 18 percent of Gross Domestic Product (GDP).

Why value-based care is to important?

Patient-centered care is prioritised in a value-based healthcare strategy. It incentivizes healthcare practitioners to keep their patients healthy, which may result in cost savings.

Hospital readmissions are one example. They occur when a patient is readmitted to the hospital within a specific time period – typically 30 days – after being discharged following an initial stay. Hospital readmissions incur additional expenditures of billions of dollars; nevertheless, readmissions are frequently avoidable with effective post-discharge planning.

Global Value-Based Healthcare Services Market accounted for USD 2.35 Billion in 2020 and is expected to reach USD 9.26 Billion by 2028

The market for value-based healthcare services was worth USD 2.35 billion in 2020 and is predicted to reach USD 9.26 billion by 2028, rising at an 18.7 percent compound annual growth rate from 2021 to 2028.

Value-based healthcare is a sort of payment service offered to providers such as hospitals in exchange for offering an exceptional patient experience, high-quality treatment facilities, and cost efficiency. Both providers and payers have found these services to be incredibly valuable. It contributes to the development of an efficient healthcare system by reducing wasteful spending and improving quality.

COVID-19 Impact Assessment

The Covid-19 pandemic has resulted in a sea change in the healthcare industry. As a result of the coronavirus outbreak, the recognition and urgency of providing quality healthcare to everyone has grown significantly. The pandemic has boosted the global market, and with the situation not improving, the value-based healthcare market is expected to increase significantly.

Factors Contributing to Growth

Numerous factors contribute to the value-based healthcare market’s growth. As more countries grow, they place a premium on providing inhabitants with high-quality healthcare. Additionally, the public is becoming more informed and mindful of the healthcare and amenities available to them. As new ailments and chronic diseases emerge, a new system of high-quality healthcare has become necessary.

Model Segment Analysis Preview

In 2020, the Accountable Care Organization (ACO) segment has a market share of more than 12%. There are numerous models for implementing value-based healthcare services. For example, an accountable care organisation (ACO) is a type of organisation in which voluntary groupings of physicians, hospitals, and other health care providers collaborate to deliver coordinated, high-quality care to Medicare patients. The model section is comprised of the Patient-Centered Medical Home (PCMH), Pay for Performance (P4P), and Bundled Payments.