Product Code: 60453
Value Based Healthcare Services Market Size And Forecast
Value Based Healthcare Services Market size was valued at USD 3.3 Billion in 2024 and is projected to reach USD 6.78 Billion by 2032, growing at a CAGR of 6.25% from 2026 to 2032.
- Value-based healthcare (VBHC) is a healthcare delivery model that emphasizes providing high-quality care while optimizing costs and improving patient outcomes.
- This approach shifts the focus from fee-for-service models to value-based reimbursement, where providers are rewarded for achieving positive health outcomes rather than simply delivering services.
- VBHC involves a collaborative effort between healthcare providers, payers, and patients to identify and address areas for improvement in care delivery.
- By using data analytics and performance measurement, VBHC enables providers to identify inefficiencies, reduce waste, and improve the overall quality of care.
- VBHC has the potential to transform the healthcare landscape by improving patient outcomes, reducing costs, and enhancing the overall quality of care.
- By shifting the focus from volume to value, VBHC can create a more sustainable and patient-focused healthcare system.
Global Value Based Healthcare Services Market Dynamics
The key market dynamics that are shaping the global Value Based Healthcare Services Market include:
Key Market Drivers
- Rising Adoption of Value-Based Care Models: The shift from fee-for-service to value-based care models are accelerating globally. This transition aims to improve patient outcomes while reducing healthcare costs. According to the Centers for Medicare & Medicaid Services (CMS), as of January 2023, 11 million Medicare beneficiaries were enrolled in accountable care organizations (ACOs).
- Growing Focus on Population Health Management: Healthcare providers are increasingly emphasizing population health management to improve overall community health outcomes. This approach involves data-driven strategies to address health disparities and prevent chronic diseases. The CDC reported in December 2023 that 73% of U.S. healthcare systems have implemented population health management programs.
- Increasing Integration of Technology in Healthcare Delivery: The integration of advanced technologies, such as artificial intelligence and telehealth, is revolutionizing healthcare delivery. These innovations enhance patient care, streamline operations, and support value-based care initiatives. The U.S. Department of Health and Human Services reported that telehealth utilization increased by 63-fold in 2023 compared to pre-pandemic levels.
- Rising Demand for Data Analytics and Interoperability: The need for robust data analytics and interoperability solutions is driving market growth. These tools enable healthcare providers to make informed decisions and coordinate care effectively. According to a National Health IT Survey conducted in November 2023, 82% of healthcare organizations cited data analytics as crucial for value-based care success.
Key Challenges:
- Resistance to Change Hindering Adoption: One of the primary challenges in implementing value-based healthcare is overcoming resistance to change. Healthcare providers may be reluctant to adopt new models of care that require significant changes to their workflows and practices. Overcoming this resistance requires effective communication, education, and incentives to encourage adoption.
- Data and Analytics Challenges Hampering Value-Based Care: Collecting, analyzing, and interpreting data is essential for value-based healthcare. However, many healthcare organizations face challenges in obtaining, integrating, and analyzing data effectively.
- Complex Regulatory Environment Challenging Value-Based Healthcare: The healthcare industry is subject to a complex regulatory environment that can make it challenging to implement value-based healthcare models. Regulations related to reimbursement, quality reporting, and patient privacy can create barriers to innovation and limit the flexibility needed for
value-based care initiatives.
- Limited Provider Capacity and Expertise: Implementing value-based healthcare requires providers to have the necessary skills and expertise to manage population health, coordinate care, and measure performance. Many healthcare organizations may lack the capacity or resources to develop the necessary capabilities.
Key Trends
- Rising Healthcare Costs Driving Value-Based Solutions: Escalating healthcare costs worldwide are pushing payers and providers to adopt value-based care models. These models aim to reduce unnecessary spending while improving patient outcomes. The OECD reported in February 2024 that healthcare spending reached an average of 9.9% of GDP across member countries in 2023.
- Growing Emphasis on Patient-Centered Care and Experience: Value-based healthcare is increasingly focusing on patient-centered care and improving patient experience. This shift recognizes the importance of patient satisfaction and engagement in achieving better health outcomes. A survey by the Agency for Healthcare Research and Quality in December 2023 found that 68% of U.S. hospitals have implemented patient experience improvement programs.
- Increasing Government Support and Regulations: Governments worldwide are implementing regulations and incentives to promote value-based healthcare models. These policies aim to improve healthcare quality while controlling costs. For instance, in April 10, 2024, the UK's National Health Service unveiled a new five-year plan to accelerate the adoption of value-based care across all NHS trusts.
- Rising Chronic Disease Burden Necessitating Value-Based Approaches: The growing prevalence of chronic diseases is driving the need for value-based care models that focus on prevention and long-term management. These approaches aim to improve outcomes for patients with chronic conditions while reducing overall healthcare costs. The World Health Organization reported in March 2024 that chronic diseases account for 71% of all deaths globally.
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Global Value Based Healthcare Services Market Regional Analysis
Here is a more detailed regional analysis of the global Value Based Healthcare Services Market:
North America
- The North American region, particularly the United States, continues to dominate the global Value Based Healthcare Services Market.
- This leadership is driven by advanced healthcare infrastructure, robust technological adoption, and strong government initiatives promoting value-based care models.
- According to the Centers for Medicare & Medicaid Services (CMS), as of March 2024, over 40% of all Medicare payments were tied to value-based care programs.
- In recent news, on April 12, 2024, UnitedHealth Group announced a strategic partnership with Google Health to develop AI-powered tools for enhancing value-based care delivery across its network.
- Canada is also making significant strides in value-based healthcare, contributing to North America's market dominance.
- The country's universal healthcare system provides a strong foundation for implementing value-based care initiatives.
- Health Canada reported in February 2024 that 65% of primary care physicians were participating in some form of value-based payment model.
- For instance, in March 20, 2024, the Ontario Ministry of Health launched a province-wide value-based care program aimed at reducing hospital readmissions by 20% over the next two years, further solidifying North America's position in the global market.
Europe
- The European region is projected to experience a rapid CAGR growth during the forecast period, driven by increasing adoption of patient-centered care models and supportive government policies.
- Many European countries are reforming their healthcare systems to prioritize value and outcomes over volume.
- According to the European Commission's Healthcare Quality and Access Index released in January 2024, the implementation of value-based care initiatives increased by 28% across EU member states in the past year.
- For instance, in March 5, 2024, Philips Healthcare announced the €100 million investment in developing AI-powered solutions for value-based care delivery across European hospitals.
- The United Kingdom is leading Europe's value-based healthcare transformation, with its National Health Service (NHS) spearheading numerous initiatives. These efforts are focused on improving patient outcomes while optimizing healthcare spending.
- NHS England reported in December 2023 that 45% of its total budget was allocated to value-based care programs, a significant increase from 30% in the previous year.
- In a recent development, on April 8, 2024, Bupa and AstraZeneca launched a collaborative value-based care program targeting chronic respiratory diseases, aiming to reduce related hospitalizations by 30% in participating NHS trusts over the next three years.
Global Value Based Healthcare Services Market: Segmentation Analysis
The Global Value Based Healthcare Services Market is segmented based on Product Type, Deployment Type, End-User, and Geography.
Value Based Healthcare Services Market, By Product Type
- Accountable Care Organization (ACO)
- Patient-Centered Medical Home (PCMH)
- Pay for Performance
- Bundled Payments
Based on Product Type, the Global Value Based Healthcare Services Market is bifurcated into Accountable Care Organization (ACO), Patient-centered Medical Home (PCMH), Pay for Performance, Bundled Payments. The accountable care organization (ACO) segment dominating the global Value Based Healthcare Services Market. This is due to the increasing focus on coordinating care for entire populations and improving overall health outcomes. However, the bundled payments segment is growing at a rapid CAGR within the global Value Based Healthcare Services Market. The segment is expanding as a result of millennials' growing desire for unusual travel experiences.
Value Based Healthcare Services Market, By Deployment Type
Based on Deployment Type, the Global Value Based Healthcare Services Market is bifurcated into Online and Offline. The offline segment is estimated to dominate the global Value Based Healthcare Services Market during the forecast period, driven by the preference for in-person consultations and the need for physical examinations in many healthcare settings. However, the online segment is growing at a rapid CAGR within the global Value Based Healthcare Services Market, fueled by advancements in telemedicine and the increasing demand for remote healthcare services.
Value Based Healthcare Services Market, By End-User
- Hospitals
- Clinics
- Insurance Companies
- Government
- Others
Based on End-User, the Global Value Based Healthcare Services Market is bifurcated into Hospitals, Clinics, Insurance Companies, Government, Others. The hospitals segment is dominating the global Value Based Healthcare Services Market, driven by the increasing need for efficient and cost-effective care delivery. However, the insurance companies' segment is rapidly growing, as insurers are actively seeking to partner with healthcare providers to implement value-based care models and improve the quality and affordability of healthcare services.
Value Based Healthcare Services Market, By Geography
- North America
- Europe
- Asia Pacific
- Rest of the world
Based on Geography, the Global Value Based Healthcare Services Market is classified into North America, Europe, Asia Pacific, and the Rest of the world. The North American region, particularly the United States, continues to dominate the global Value Based Healthcare Services Market. However, the European region is projected to experience a rapid CAGR growth during the forecast period, driven by increasing adoption of patient-centered care models and supportive government policies.
Key Players
The "Global Value Based Healthcare Services Market" study report will provide valuable insight with an emphasis on the global market. The major players in the market are Siemens Healthcare GmbH, NextStep Solutions, McKesson Corporation, NextGen Healthcare, Genpact Limited, Athena Healthcare, Boston Consulting Group, Change Healthcare, Baker Tilly, USA, LLC, ForeSee Medical, Inc.Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.Global Value Based Healthcare Services Market Key Developments
- In April 2023, Risant Health, a new non-profit corporation, was established by Kaiser Foundation Hospitals and Geisinger Health with the goal of promoting and expediting the implementation of value-based care across varied, multi-payer, multi-provider, community-based health system settings.
- In February 2023, to improve access in rural Minnesota, Blue Cross and Blue Shield of Minnesota and Homeward signed a full-risk value-based care agreement.
- In December 2021, the first Home Health Value-Based Purchasing Model was established by the Center for Medicare and Medicaid Innovation. The idea was developed to assist Home Health Agencies nationwide that are certified by Medicare in enhancing the effectiveness and caliber of their care.
TABLE OF CONTENTS
1 INTRODUCTION OF GLOBAL VALUE BASED HEALTHCARE SERVICES MARKET
- 1.1 Overview of the Market
- 1.2 Scope of Report
- 1.3 Assumptions
2 EXECUTIVE SUMMARY
3 RESEARCH METHODOLOGY OF VERIFIED MARKET RESEARCH
- 3.1 Data Mining
- 3.2 Validation
- 3.3 Primary Interviews
- 3.4 List of Data Sources
4 GLOBAL VALUE BASED HEALTHCARE SERVICES MARKET OUTLOOK
- 4.1 Overview4.2 Market Dynamics
- 4.2.1 Drivers
- 4.2.2 Restraints
- 4.2.3 Opportunities
- 4.3 Porters Five Force Model
- 4.4 Value Chain Analysis
5 GLOBAL VALUE BASED HEALTHCARE SERVICES MARKET, BY PRODUCT TYPE
- 5.1 Overview
- 5.2 Accountable Care Organization (ACO)
- 5.3 Patient-centered Medical Home (PCMH)
- 5.4 Pay for Performance (P4P)
- 5.5 Bundled Payments
6 GLOBAL VALUE BASED HEALTHCARE SERVICES MARKET, BY DEPLOYMENT TYPE
- 6.1 Overview
- 6.2 Online
- 6.3 Offline
7 GLOBAL VALUE BASED HEALTHCARE SERVICES MARKET, BY END-USER
- 7.1 Overview
- 7.2 Hospitals
- 7.3 Clinics
- 7.4 Insurance Companies
- 7.5 Government
- 7.6 Others
8 GLOBAL VALUE BASED HEALTHCARE SERVICES MARKET, BY GEOGRAPHY
- 8.1 Overview
- 8.2 North America
- 8.2.1 U.S.
- 8.2.2 Canada
- 8.2.3 Mexico
- 8.3 Europe
- 8.3.1 Germany
- 8.3.2 U.K.
- 8.3.3 France
- 8.3.4 Rest of Europe
- 8.4 Asia Pacific
- 8.4.1 China
- 8.4.2 Japan
- 8.4.3 India
- 8.4.4 Rest of Asia Pacific
- 8.5 Rest of the World
- 8.5.1 Latin America
- 8.5.2 Middle East
9 GLOBAL VALUE BASED HEALTHCARE SERVICES MARKET COMPETITIVE LANDSCAPE
- 9.1 Overview
- 9.2 Company Market Ranking
- 9.3 Key Development Strategies
10 COMPANY PROFILES
- 10.1 Siemens Healthcare GmbH
- 10.1.1 Overview
- 10.1.2 Financial Performance
- 10.1.3 Product Outlook
- 10.1.4 Key Developments
- 10.2 NextStep Solutions
- 10.2.1 Overview
- 10.2.2 Financial Performance
- 10.2.3 Product Outlook
- 10.2.4 Key Developments
- 10.3 McKesson Corporation
- 10.3.1 Overview
- 10.3.2 Financial Performance
- 10.3.3 Product Outlook
- 10.3.4 Key Developments
- 10.4 NextGen Healthcare
- 10.4.1 Overview
- 10.4.2 Financial Performance
- 10.4.3 Product Outlook
- 10.4.4 Key Developments
- 10.5 Genpact Limited
- 10.5.1 Overview
- 10.5.2 Financial Performance
- 10.5.3 Product Outlook
- 10.5.4 Key Developments
- 10.6 Athena Healthcare
- 10.6.1 Overview
- 10.6.2 Financial Performance
- 10.6.3 Product Outlook
- 10.6.4 Key Developments
- 10.7 Boston Consulting Group
- 10.7.1 Overview
- 10.7.2 Financial Performance
- 10.7.3 Product Outlook
- 10.7.4 Key Developments
- 10.8 Change Healthcare
- 10.8.1 Overview
- 10.8.2 Financial Performance
- 10.8.3 Product Outlook
- 10.8.4 Key Developments
- 10.9 Baker Tilly, USA, LLC
- 10.9.1 Overview
- 10.9.2 Financial Performance
- 10.9.3 Product Outlook
- 10.9.4 Key Developments
- 10.10 ForeSee Medical, Inc
- 10.10.1 Overview
- 10.10.2 Financial Performance
- 10.10.3 Product Outlook
- 10.10.4 Key Developments
11 Appendix