Value-based Care Payment Global Market Report 2024

The value based care payment market size has grown rapidly in recent years. It will grow from $2.47 billion in 2023 to $2.77 billion in 2024 at a compound annual growth rate (CAGR) of 12.1%.The expansion observed in the historical period can be ascribed to robust economic growth in emerging markets, an increase in healthcare spending, the widespread adoption of digital healthcare infrastructure, and the swift development of value-based healthcare services.

The value based care payment market size is expected to see rapid growth in the next few years. It will grow to $4.1 billion in 2028 at a compound annual growth rate (CAGR) of 10.4%. The anticipated growth in the forecast period can be linked to a rising aging population, the expansion of the middle-class in emerging markets, and an increasing prevalence of chronic diseases, all contributing to the overall growth. Key trends expected in this period include a focus on low-code platforms for value-based care, strategic mergers and acquisitions, the implementation of optimal care management strategies, the recognition of remote patient monitoring as a reimbursable initiative for value-based care, and a surge in bundle payments.

The substantial growth in the value-based care payment market is expected to be fueled by the rapid development of value-based healthcare services. This progress has significantly contributed to reducing the healthcare cost curve and unnecessary expenditures, with an average reduction of about 5.6%. UnitedHealth, for example, has anticipated that $75 billion of its payments to medical care providers will be linked to value-based care relationships. Additionally, the proliferation of Accountable Care Organizations (ACO) is providing increased protection and coverage. According to a Journal of Health Affairs analysis, there were over 1,000 ACOs across the USA, representing more than 1,400 contracts with commercial and government insurers, covering over 32 million Americans. Consequently, the swift expansion of value-based healthcare services is stimulating demand in the value-based care payment market by emphasizing effective service utilization based on the value-based care model rather than the fee-for-service model.

The projected growth of the value-based care payment market is also attributed to the increase in health spending. Health spending refers to the total financial allocation or expenditure on healthcare services and products within a specific region, country, or healthcare system. In the context of Value-Based Care, health spending is connected to specific health outcomes that are financially rewarded for achieving positive patient results, such as enhanced health, reduced hospital readmissions, or better management of chronic conditions. For instance, as of March 2023, the American Medical Association reported that health spending in the U.S. rose by 2.7% in 2021, reaching $4.3 trillion or $12,914 per capita. The upward trajectory in health spending is thus a driving force behind the growth of the value-based care payment market.

Partnerships in the realm of value-based care are gaining traction among healthcare providers. These collaborative partnerships involve stakeholders such as manufacturers, payers, and provider organizations working together to co-develop programs, solutions, and initiatives aimed at benefiting patients and healthcare systems. Value-based partnerships focus on delivering the highest value incentive to the healthcare system and society by concentrating efforts on improving patient outcomes while considering the overall system and societal costs. An example of this is the acquisition by Humana, a U.S.-based health insurance company, of value-based home healthcare partner One Homecare Solutions (onehome) from WayPoint Capital Partners in June 2021, enhancing the provision of value-based care in home healthcare services.

Major companies within the value-based care payment sector are embracing innovative models, such as the home health value-based purchasing (HHVBP) model, to augment their revenue in the market. This model is designed to enhance the quality and efficiency of care provided by Medicare-certified Home Health Agencies (HHA) nationwide. As an illustration, in December 2021, The Centers for Medicare & Medicaid Services, a U.S.-based federal agency, adopted the initial Home Health Value-Based Purchasing Model, supporting the Department of Health and Human Services' efforts to create a healthcare system that delivers improved care, utilizes healthcare dollars more effectively, and leads to healthier people and communities.

In March 2022, Signify Health, Inc., a Texas-based value-based healthcare platform, made an undisclosed acquisition of Caravan Health. This strategic move enables Signify Health to achieve a broader range of value-based and shared savings models, including advanced primary care, specialty care bundles, and total cost of care programs. Caravan Health, a U.S.-based company specializing in value-based payment healthcare, is now part of Signify Health through this acquisition.

Major companies operating in the value based care payment market report are McKesson Corporation, Change Healthcare, Premier Inc., NextGen Healthcare Inc., FinThrive, Inc., Unitedhealth Group Inc., Edifecs, Nuna Inc., OM1, Relias, Apollo Specialty Hospital, National Hospital Organisation Medical Center, National Cancer Center Hospital, Tata Memorial Hospital, Phoenix Healthcare Group, JD Health, Alibaba Health Information Technology Ltd., Ping An Healthcare And Technology Co. Ltd., Tencent Holdings Ltd., Wedoctor Holdings (Zhejiang) Co. Ltd., Huma, Cera, Lumeon, Helios Gesundheit, University Clinic Heidelberg (Universittsklinikum Heidelberg), Leiden University Medical Center, Doctorlink, Cigna, GE Healthcare, Siemens Medical Solutions USA, Inc., Etyon Health, Fresenius Medical Care, Medtronic PLC, 3M Healthcare Service Group, F. Hoffmann-La Roche AG, Dickinson And Company, Acelity L.P., Dupatri, Vibe Saúde, Célebre Corretora, Butterfly, Plim, Guepardo Sistemas, LUMC, Afya Ltd., Glic, Iclinic Desenvolvimento De Software Ltda, Glucare Integrated Diabetes Center, Clalit Health Services, Nextstep People Solutions, Athena Health.

North America was the largest region in the value-based care payment market in 2023. Western Europe was the second largest region in value-based care payment market share. The regions covered in the value based care payment market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the value based care payment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The primary models within the realm of value-based care payment include Accountable Care Organizations (ACO), Bundled Payments, Patient-Centered Medical Homes (PCMH), and Pay for Performance (P4P). An Accountable Care Organization is a healthcare entity where provider compensation is tied to quality metrics and measures aimed at reducing costs. These models aim to connect payments with the value and outcomes of healthcare services delivered.

The value-based care payment market research report is one of a series of new reports that provides value-based care payment market statistics, including value-based care payment industry global market size, regional shares, competitors with a value-based care payment market share, detailed value-based care payment market segments, market trends and opportunities, and any further data you may need to thrive in the value-based care payment industry. This value-based care payment market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The value-based care payment market includes revenues earned by entities by providing hospital value-based purchasing programs (VBP) and value-based care services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.