Global Value-Based Healthcare Market to Grow at Highest Pace owing to Rising Need for Healthcare Cost Containment

The global value-based healthcare market encompasses various products and services that enable the delivery of outcome-based and value-centered healthcare. Some of the key components of this market include population health management solutions, healthcare provider Performance Improvement and Value-Based Care consulting services. The market is primarily driven by the rising need amongst healthcare providers to shift from traditional fee-for-service models towards outcome and risk-based alternative payment models. This transition is helping providers enhance the quality of patient care while aiming to contain escalating healthcare costs.

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 - Key players operating in the Global Value-Based Healthcare Market Size 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.

Growing Demand - There is growing demand for value-based healthcare as several countries face rising healthcare burdens due to aging populations and increasing prevalence of chronic diseases. This has accelerated the need for more affordable healthcare delivery models.

Technological Advancement - Advancements in big data analytics, artificial intelligence, and cloud computing are enabling more sophisticated population health management and precision medicine. This is helping stakeholders better manage patient health and enhance care delivery according to individual needs.

Market Trends

Rising Interest in Risk-Sharing Models - There is increasing focus amongst healthcare payers and providers on risk-sharing models where both parties share financial accountability for patient health outcomes and spending. This encourages collaborative care and cost control.

Focus on Social Determinants of Health - Players are recognizing the influence of social and environmental factors on individual health status and outcomes. This is driving more integration of social health services and community-based programs into value-based care models.

Market Opportunities

Growing emphasis on Remote Patient Monitoring - The pandemic has accelerated virtual care and remote patient monitoring solutions. This provides opportunities to incorporate novel digital tools into value-based programs to better track patient metrics outside clinical facilities.

Partnerships with Pharma Companies - More collaboration between healthcare providers and pharmaceutical firms can help advance performance-based drug pricing, indication-specific contracting, and outcomes-based drug reimbursement models in the value-based care landscape.

Impact of COVID-19 on Global Value-Based Healthcare Market
The COVID-19 pandemic has significantly impacted the growth of the global value-based healthcare market. During the pandemic, there was an increased focus on preventive care, telehealth adoption, and population health management to curb the spread of the virus. Healthcare providers shifted their focus from fee-for-service to value-based models to improve patient outcomes while reducing costs. The demand for remote monitoring, virtual consultations, and digital health solutions increased multi-fold. Post pandemic, there will be a greater emphasis on wellness, prevention, and seamless digital healthcare experiences for patients. Value-based models can help make healthcare more affordable and accessible in these uncertain times. Sustaining long-term virtual care strategies and value-driven partnerships will be crucial moving forward. Emerging technologies like AI and cloud computing will play an important role in enabling better coordination and data sharing between stakeholders. Collaboration between payers, providers, and other parties will be needed to enhance community health and build resiliency within populations.

North American Region Dominates Global Value-Based Healthcare Market
North America currently holds the largest share of the global value-based healthcare market mainly due to the presence of advanced healthcare infrastructure and favorable government policies in the US and Canada that promote value-based reimbursement models. Large healthcare organizations in the region have extensively adopted value-based arrangements to improve quality and affordability of care. The Asia Pacific region is expected to grow at the fastest rate owing to rising healthcare expenditures, increasing burden of chronic diseases, growing medical tourism, and government initiatives to reform healthcare systems in countries like India, China, and Japan.

European Region Concentrated in Global Value-Based Healthcare Market
Europe accounted for a considerable share of the value-based healthcare market in 2024 due to the well-established national health services, rising prevalence of long-term conditions, and new frameworks designed to integrate care around the patient's needs across settings. Countries such as Germany, France, and the UK have led initiatives to shift from volume to value by bundling payments, gainsharing cost savings, and penalizing readmissions. Public and private insurers are engaging in outcome-based contracts with providers to improve health outcomes for defined patient populations at lower costs.