The global value-based care payment market size is expected to decline from $1.66 billion in 2019 to $1.52 billion in 2020 at a compound annual growth rate (CAGR) of -8.39%. The decline is mainly due to the COVID-19 outbreak that has resulted in losses in attributions, missed outcome metrics, and struggles with reporting requirements. The value-based care payment market size is then expected to recover and reach $3.03 billion in 2023 at a CAGR of 25.81%.
Rapid development in value-based health care services is expected to contribute to the tremendous growth of the value based payment system market. Healthcare cost curve and unnecessary health expenditure have been reduced to almost 5.6% on average due to value-based healthcare services. According to UnitedHealth Group, a US-based health insurance company, in 2019, value-based payments to healthcare providers recorded a growth of more than 15% supporting incentives to practice supreme quality care while enhancing the effective use of health system resources. Furthermore, UnitedHealth predicted that $75 billion of its payments to medical care providers will be attached to value-based care relationships by the end of 2020. Likewise, the quantity of Accountable Care Organizations (ACO) is expanding, giving more protection inclusion. For example, according to a 2018 analysis in the Journal Health Affairs, there were more than 1,000 ACOs spread across the USA in 2017, which represented more than 1,400 contracts with commercial and government insurers covering more than 32 million Americans. Therefore, rapid expansion in value-based health care services is driving the value-based care payment market by increasing the effective usage of services provided to customers, focusing on value-based care model rather than the fee-for-service model.
The value-based care payment market consists of sales of value-based care payment services by entities (organizations, sole traders and partnerships) that provide value-based care payment in which healthcare providers such as hospitals are paid based on patient’s health outcome, quality, efficiency, cost, and patient experience.
Partnerships in value-based care are gaining popularity among the providers as these partnerships allow partners such as manufacturers, payers, and provider organizations to co-develop programs, solutions, and initiatives collaboratively, for the benefit of patients and healthcare systems. Value-based partnerships assist with conveying the highest value incentive to the healthcare system and society, by concentrating on improving patient results with regards to the system and societal total costs. For instance, in March 2018, UnitedHealth Group’s health business services arm, Optum, announced a partnership with HealthBI, a workflow platform for health management and value-based care initiatives, aiming at creating an industry-changing operation model for the provider to practice and improve value-based care.
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