The Global Value-Based Healthcare Market provides healthcare services that are paid based on outcomes achieved and their ability to reduce costs rather than services rendered. Value-based healthcare (VBHC) aims to provide coordinated care with the focus on prevention and wellness along with individual choices regarding doctors. VBHC holds providers accountable for both quality of care and health outcomes of patients. This market is witnessing growth owing to rising pressure on healthcare providers and payers to enhance patient outcomes while reducing costs.
The Global Value-Based Healthcare Market is estimated to be valued at US$ 14.27 Bn in 2024 and is expected to exhibit a CAGR of 12.8% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the Global Value-Based Healthcare Market are Thermo Fisher Scientific, Inc., Enzo Biochem, Inc., PerkinElmer Inc., NanoTemper, GE Healthcare, HORIBA, Ltd., Malvern Panalytical Ltd., Agilent Technologies, Inc., SETARAM Instrumentation, Unchained Labs, Waters Corporation, and Applied Photophysics Ltd. These players are focusing on developing advanced solutions to help improve patient outcomes. For instance, in 2022, Thermo Fisher launched new tools and resources to help accelerate clinical trials and support development of new drugs.
The Global Value-Based Healthcare Market Size is increasing globally due to rising healthcare costs and focus on population health management. According to the UN report, global healthcare spending is expected to increase from US$ 8.5 trillion in 2017 to US$ 10 trillion by 2022. This rising spending is prompting providers and payers to shift from fee-for-service to value-based payment models.
Technological advancements such as AI, predictive analytics, blockchain, and precision medicine are enabling healthcare providers to shift from fee-for-service to value-based care models. AI can analyze enormous amounts of healthcare data to identify at-risk patients, detect ongoing issues, predict outcomes, and enable preventive interventions. This is driving the adoption of value-based healthcare globally.
Market Trends
Growing adoption of Patient-Centered Medical Homes (PCMH) - PCMHs provide comprehensive and coordinated care centered around the whole patient. Their adoption is growing worldwide to enhance patient experience and clinical outcomes.
Rising collaborative efforts between providers, payers, employers and technology giants - Key Value-Based Healthcare Market Companies are forming partnerships to develop innovative VBHC models, data analytics solutions and care delivery platforms. This will accelerate market growth.
Market Opportunities
Expanding into new therapeutic areas - Major players can focus on applying value-based models to specialties beyond primary care like oncology, cardiology and orthopedics to gain more share.
Investing in advanced digital solutions - Developing digital tools leveraging IoT, virtual care, AI and big data can help providers better coordinate care, monitor outcomes and engage patients throughout their care journey. This presents lucrative opportunities.
Impact of COVID-19 on Global Value-Based Healthcare Market
The outbreak of COVID-19 has adversely impacted the growth of the global Value-Based Healthcare Market. The implementation of social distancing measures and lockdowns imposed various restrictions on non-emergency medical procedures and outpatient visits. This led to decreased revenue for healthcare providers due to the fall in volume and claims. The shift of resources towards COVID-19 treatment also diverted focus from value-based programs. However, healthcare systems recognized the importance of integrated and coordinated care delivery during the pandemic. This emphasized the need to transform to alternative payment models focusing on quality and outcomes rather than fee-for-service. Going forward, as the pandemic situation stabilizes, value-based models are expected to gain more traction to enhance patient access to coordinated care. Telehealth and remote monitoring solutions will play a bigger role in connecting providers and patients while containing costs. Data analytics capabilities will be leveraged to enhance risk stratification and management of chronic conditions. Partnerships between payers, providers, and life sciences companies are also likely to increase for transitioning to population health-centric and risk-sharing arrangements.
North America dominates Global Value-Based Healthcare Market
Within the global Value-Based Healthcare Market, North America accounted for the largest value share in 2024 due to favorable regulatory reforms and initiatives encouraging value-based arrangements in the US. Countries like the US and Canada have widely adopted alternative payment models (APMs) that link reimbursement to quality and cost metrics. Established electronic health record (EHR) infrastructure supports data exchange and analytics capabilities. Progressive policies by organizations such as Center for Medicare and Medicaid Services (CMS) are expanding the scope of APMs and risk-bearing contracts.
Asia Pacific presents High Growth opportunities in Global Value-Based Healthcare Market
The Asia Pacific region is projected to exhibit the fastest growth over the forecast period in the global Value-Based Healthcare Market. This can be attributed to rising healthcare expenditures, growing burden of chronic diseases, and government plans to reform healthcare systems for improving affordability, access and quality of care. Countries like China, Japan, India, South Korea and Australia are witnessing higher adoption of digital health technologies and focus on integrated healthcare delivery models. This is expected to fuel the implementation of value-based arrangements centered on patient outcomes and total cost of care.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
