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Value-based Healthcare Services Market Analysis

The Value-based Healthcare Services Market size is estimated at USD 1.63 trillion in 2024, and is expected to reach USD 3.77 trillion by 2029, growing at a CAGR of 18.23% during the forecast period (2024-2029).

• COVID-19 posed significant challenges for healthcare organizations. The need to quickly ramp up testing and tracing strategies and maintain continuity of care for patients with ongoing medical and social needs increased the demand for value-based healthcare services during the pandemic. Many value-based providers (VBP) also used claims and clinical data to create algorithms and other tools to identify and support high-risk individuals. This increased the rapid adaptation of accountable care organizations to provide quality care to vulnerable patients during the pandemic.
• For instance, as per an article published in Healthcare, in June 2022, Aledade, a VBP enabler, operated 39 Medicare Shared Savings Program (MSSP) accountable care organizations across 27 states, with a total of 467 practices and 440,000 patients attributed to such programs during the spring of the pandemic period. Thus, the high utilization of value-based services has increased the market growth during the pandemic. Moreover, with the growing demand for healthcare delivery services and integrated care models, the studied market is expected to grow over the forecast period.
• Factors such as the rising incidence of chronic diseases, increasing government initiatives, and the growing demand for more integrated care delivery models are expected to boost market growth over the forecast period.
• The increasing burden of chronic diseases among the population raises the need for value-based healthcare services to cut down unnecessary healthcare spending, propelling market growth. For instance, according to 2022 statistics published by the International Diabetes Federation, about 536 million people were living with diabetes globally in 2021, and this number is projected to reach 643 million and 784 million by 2030 and 2045, respectively.
• Additionally, according to an article published in the European Respiratory Journal, in November 2021, about 36.5 million Europeans were suffering from chronic obstructive pulmonary disease (COPD) during the pandemic, and projected to reach 49.5 million by 2050, which represents a 35.2% relative increase in number of patients. This increases the demand for value-based care models, which helps in reducing uncertainty for chronic disease patients and improving their interactions with providers, hence providing medical and financial benefits to patients. Such factors are anticipated to augment the market growth over the forecast period.
• Furthermore, novel approaches and programs are being introduced by the government and organizations as a result of the rising emphasis on promoting value-based healthcare services among providers and patients. For instance, in January 2023, the National Health Authority (NHA) introduced a new system to measure and grade hospital performance under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) scheme to move the focus of measuring the hospital's performance from volume to value of healthcare services.
• Moreover, according to the data published by the Rural Health Value, in February 2023, the Department of Health and Human Services (HHS) developed several value-based initiatives, particularly through the Centres for Medicare and Medicaid Services (CMS) and its Centre for Medicare and Medicaid Innovation (CMMI) to assist rural leaders and communities in identifying HHS value-based initiatives suitable for rural participation. Such initiatives are anticipated to expand the use of integrated care models for effectively managing patient disease, thereby boosting market growth.
• Therefore, owing to the aforementioned factors, such as the high burden of chronic diseases, rising government initiatives, and the growing demand for value-based care delivery models, the studied market is anticipated to grow over the forecast period. However, challenges in balancing two reimbursement and payment mechanisms are likely to hinder the growth of the value-based healthcare services market over the forecast period.

Value-based Healthcare Services Market Trends

Shared Savings Segment Expects to Register a High CAGR Over the Forecast Period

Value-based Healthcare Services Industry Segmentation

Value-based care is a medical services model in which practitioners and providers are paid based on the quality of their care.

The value-based healthcare services market is segmented by models, providers, and geography (North America, Europe, Asia-Pacific, Middle East and Africa, and South America). By models, the market is segmented into bundled payments, pay for performance, patient-centered medical home, shared savings, and other models. By providers, the market is segmented into home health care, hospital therapy, and other providers. The report also covers the market sizes and forecasts for the value-based healthcare services market in major countries across different regions. For each segment, the market size is provided in terms of value (USD).