Value-based Health Care Services Market: Rapid development in value-based health care services acts as a major driver of the market

Value-based Health Care Services Market: Overview

Value-based health care is a model, wherein providers such as hospitals are paid based on patient’s health outcome, quality, efficiency, cost, and patient experience. Intense competition among providers and increase in pressure to lower cost and improve care have led to a shift from volume-based health care to value-based health care. Value-based health care benefits patients, providers, payers, suppliers, and society. It focuses on helping patients toward quick recovery and avoid chronic diseases to achieve better health at lower costs. Providers achieve high patient satisfaction with better care efficiencies. Payers achieve cost control and reduced risk by spreading it among large number of patients.

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Value-based health care helps to reduce overall health care spending for society. Commonly used value-based health care models are pay for performance, accountable care organization, bundled payments, and patient-centered medical home. In pay for performance model, providers are paid by payers for meeting pre-measured performance thresholds. It is usually implemented by Medicare and private insurers. Accountable care organizations (ACOs) are groups of health care providers, such as hospitals and physicians, who work as a team to give coordinated high quality care to Medicare patients and each member shares risk and rewards. ACOs focus on data sharing among team members in order to achieve quality of care and positive health outcome with reduced costs. Bundled payments are single payment for all services for a specific treatment or condition such as spine surgery and cardiac procedures. In patient-centered medical home, patients have a provider and a team, providing continuous, accessible health care in order to achieve the best outcomes.

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Value-based Health Care Services Market: Key Trends

Rapid development in value-based health care services acts as a major driver of the global value-based health care services market during forecast period. According to a survey by NEJM Catalyst, more than 40% of the U.S. health care executives think that value-based reimbursement will become primary revenue model for the U.S. at some point in time. However, lack of desired health care infrastructure and Internet connectivity in some regions in developing parts of world is expected to restrain the global value-based health care services market during the forecast period.

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Value-based Health Care Services Market: Segmentation

The global value-based health care services market can be segmented based on model, deployment, platform, end-user, and region. In terms of model, the market can be classified into accountable care organization (ACO), patient-centered medical home (PCMH), pay for performance (P4P), and bundled payments. Based on deployment, the global value-based health care services market can be bifurcated into cloud-based and on-premise. In terms of platform, the market can be categorized into standalone and integrated. Based on end-user, the global value-based health care services market can be divided into providers (hospitals, clinics, and others) and payers (insurance companies, government, and others).

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Value-based Health Care Services Market: Regional Analysis

In terms of region, the global value-based health care services market can be segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America dominated the global market in 2018 and is anticipated to continue its dominance during the forecast period due to health care reforms. The market in Asia Pacific is expected to expand at the highest CAGR owing to increase in research and development, surge in awareness, and improvement in health care infrastructure.

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Value-based Health Care Services Market: Competitive Landscape

Major players operating in the global value-based health care services market include Deloitte, Siemens Healthcare GmbH, NextStep Solutions, athenahealth, Genpact, McKesson Corporation, and NXGN Management, LLC.

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