Global Value-Based Healthcare Market Primed for Growth due to Shift towards Preventive Care
The global Value-Based Healthcare Market is witnessing significant traction as a result of growing focus on preventive care and improved patient outcomes. Traditionally, healthcare systems around the world have been relying heavily on fee-for-service models where providers are reimbursed based on volume of care delivered. However, value-based care prioritizes quality, outcomes and overall patient wellness over volume of services. This shift is helping drive greater focus on preventive measures, remote care delivery and personalized treatment approaches.
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.
The Global Value-Based Healthcare Market Size is increasing significantly owing to rising healthcare costs, growing prevalence of chronic diseases and the need for improved patient outcomes. Various countries are implementing value-based reimbursement programs and policies to enhance quality of care while curbing healthcare spending.
Major players in the market are focused on global expansion through partnerships, mergers and acquisitions. They are also investing in development of advanced solutions and services to help healthcare providers shift from fee-for-service to value-based payment systems.
Market Drivers
The growing emphasis on preventive healthcare measures rather than sick care is a major driver for the market. Preventive care helps address health issues at an early stage and reduce overall medical expenses. It improves patient engagement and lifestyle management. Various value-based programs encourage providers to offer preventive services and remote monitoring to enhance patient wellness. This is expected to fuel demand for value-based healthcare solutions over the forecast period.
The current geopolitical uncertainties are significantly impacting the growth of the global Value-Based Healthcare Market. Rising geopolitical tensions among major countries including USA, China, Russia etc. are disrupting the global supply chains of healthcare equipment and devices. The ongoing Russia-Ukraine war has adversely affected the supply of key raw materials for diagnostic devices and equipment from these regions. It has also led to steep rise in transportation and logistics costs globally. These geopolitical issues are delaying new product launches and upgradations in the value-based healthcare sector.
To sustain long-term growth amid geopolitical challenges, key players in this market need to diversify their manufacturing and sourcing operations globally. Establishing multiple manufacturing facilities in different geographies can help reduce single-point supply risks. Value-Based Healthcare Market Companies also need to focus on developing localized and decentralized manufacturing and supply chain models. Investing in advanced technologies like 3D printing can help produce certain critical components on-demand with minimal dependencies. Collaborating with local players in different markets can boost in-country production and lower freight costs. Focusing more on value-based care models and outcomes-based contracts with payers can also help companies mitigate short-term business disruptions due to geopolitical issues.
In terms of value, North America holds the largest share in the global Value-Based Healthcare Market currently due to advanced healthcare infrastructure and growing adoption of value-based care models in the region. Asia Pacific is projected to be the fastest growing regional market during the forecast period driven by rising healthcare expenditures, increasing patient volumes, and growing medical tourism in countries like India, China, and Singapore.
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