April 22, 2024
Global Value-Based Healthcare Market

The Rise of Value-Based Healthcare Market is Transforming the Industry through Outcomes-Based Reimbursement Models

The global value-based healthcare market is rapidly expanding as healthcare providers and payers recognize the need to shift from volume-based fee-for-service models to outcomes-based payment systems that incentivize quality and efficiency of care. Value-based healthcare involves linking reimbursement to patient health outcomes rather than individual services, helping providers deliver higher value care at lower costs. The market encompasses population health management platforms, data analytics, remote patient monitoring solutions, and value-based arrangements with payers that enable risk-based contracts and global budgeting.

The Global Value-Based Healthcare Market 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 Market Demand 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 companies offer software, data analytics platforms and consulting services to help transition to value-based care models.

The growing global burden of chronic diseases and rising healthcare costs are driving greater adoption of value-based arrangements. Population health management solutions are enabling providers to track outcomes, coordinate care more efficiently and be reimbursed based on health outcomes rather than individual services.

Health systems and payers are also expanding value-based contracts globally to international markets. As other countries look to reform expensive healthcare systems and contain costs, value-based models are providing opportunities for partnerships focused on quality, affordability and population health outcomes.

Market key trends

One of the major trends in the global value-based healthcare market is the rise of risk-based contracts between payers and providers. Under these arrangements, healthcare providers assume responsibility for the total cost of care for a population, encouraging preventive care and coordination to reduce hospitalizations and unnecessary procedures. This shifts reimbursement from fee-for-service to a system where providers share financial risk and rewards based on quality metrics and outcomes. Adoption of risk-based models is expected to further accelerate over the forecast period as their potential for sustainability is realized.

Porter’s Analysis

Threat of new entrants: Low barrier to entry, established players have economies of scale and brand recognition.

Bargaining power of buyers: Large pool of suppliers, buyers have greater negotiating power over price.

Bargaining power of suppliers: Suppliers have weak bargaining power due to presence of many substitutes and products.

Threat of new substitutes: Substitutes like activity based healthcare and fee for service models are low threat as value based models are more focused on healthcare outcomes.

Competitive rivalry: Intense competition among established players to gain market share and scale operations through mergers and acquisitions.

The North American region dominates the global value-based healthcare market and is estimated to hold the largest market share owing to higher adoption of value-based healthcare services and government initiatives to improve healthcare infrastructure in this region.

The Asia Pacific region is expected to witness the fastest growth rate over the forecast period due to rising healthcare expenditure, increasing incidences of chronic diseases, growing medical tourism industry and rapid digitization in countries such as China and India. Increasing investments by pharmaceutical companies and governments in this region is also expected to support regional market growth.

Geographical Regions

The United States accounts for the major share in the North American region primarily due to developed healthcare infrastructure, presence of leading value-based healthcare providers and growing prevalence of chronic diseases. Rising healthcare costs and focus on quality and personalized care are further promoting the adoption of value-based models in the country.

China dominates the Asia Pacific region and is estimated to grow at the fastest rate globally between 2024-2031. This can be attributed to increasing unmet medical needs of vast population, favorable government policies supporting digital health adoption and privatization of healthcare services in the country. India, Japan and South Korea also provide significant growth opportunities within the region.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it