The value-based healthcare market is centered around population health management, revenue cycle management and healthcare interoperability. The growing adoption of value-based healthcare models among providers aims to improve health outcomes and lower costs. Value-based healthcare focuses on quality over volume by rewarding physicians and hospitals for better patient outcomes instead of fee-for-service.

The Global Value-Based Healthcare Market Demand is estimated to be valued at US$ 12.18 BN in 2024 and is expected to exhibit a CAGR of 14% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the global value-based healthcare are Baker Tilly US, LLP, Change Healthcare, Athena Healthcare, Curation Health, UnitedHealth Group, McKesson Corporation, Deloitte, Siemens Medical Solutions USA, Inc., Signify Health, Inc. (Sentara Healthcare), Humana, and NXGN Management, LLC. These players are focusing on population health management and risk-sharing models to deliver better patient outcomes at lower costs.

The key opportunities in the value-based healthcare market include shift towards patient-centric care, focus on preventive healthcare, and investments in healthcare analytics and technology. As patients are taking a more active role in managing their health, value-based models allow providers to offer personalized care and wellness programs. Significant funding is being directed towards value-based initiatives across the US, Europe and Asia to improve care quality and lower costs.

Globally, value-based care models are expanding beyond the US with countries like UK, Germany, France, Australia, Japan, and Brazil implementing reforms. Insurers and providers are engaging in risk-sharing agreements to improve health outcomes for chronic illnesses. Governments are incentivizing the adoption of value-based arrangements through policies and payment methodologies. This global expansion will drive further growth of the value-based healthcare market over the forecast period.

Market Drivers and Restraints

The growing focus on preventive care and population health management is a key driver for the value-based healthcare market. As healthcare costs continue to rise, there is increased emphasis on wellness, screening, and lifestyle changes to reduce disease burden and hospitalizations. Value-based models facilitate coordination between providers, payers, and community resources to address social determinants and improve patient engagement.

However, lack of data analytics capabilities and infrastructure in certain developing regions poses a challenge for advanced population health approaches. Integrating electronic health records across different stakeholders also remains difficult. High upfront investments and lack of interoperability standards can potentially restrain market growth. Lack of performance measurement tools and risk model methodologies needs to be addressed for successful value-based contracting.

Segment Analysis
The Global Value-Based Healthcare market is segmented by service type into cloud-based and on-premise sub segments. The cloud-based sub segment dominates the market currently accounting for over 50% share as it provides remote access and centralized data storage. This sub segment is expected to continue its dominance over the forecast period owing to the increasing adoption of digital healthcare services and growing popularity of Software-as-a-Service model.

The market is also segmented by end user into providers, payers and patients/consumers. The providers segment accounts for the largest share currently and is expected to remain the dominant segment over the forecast period. This is owing to the increasing focus of healthcare providers on population health management and need to improve health outcomes while reducing costs.

Global Analysis
Regionally, North America dominates the Global Value-Based Healthcare market currently accounting for over 35% share. This is attributed to favorable government initiatives and presence of well-established healthcare infrastructure and healthcare IT companies in the region. The region is expected to remain the fastest growing region over the forecast period.

Asia Pacific region is poised to witness the highest growth during the forecast period owing to increasing healthcare expenditure, rising incidence of chronic diseases and growing focus on personalized and digital healthcare in countries like China and India. Countries in Europe and Latin America are also anticipated to showcase significant growth rates during the forecast period.

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