Global Value-based Healthcare Services Market Insights Forecasts to 2033

• The Global Value-based Healthcare Services Market Size was Valued at USD 1.33 Trillion in 2023
• The Market Size is Growing at a CAGR of 12.00% from 2023 to 2033
• The Worldwide Value-based Healthcare Services Market Size is Expected to Reach USD 4.13 Trillion by 2033
• Asia-Pacific is Expected to Grow the fastest during the forecast period.

The Global Value-based Healthcare Services Market Size is Anticipated to Exceed USD 4.13 Trillion by 2033, Growing at a CAGR of 12.00%from 2023 to 2033.

Market Overview

Value-based health care is a form of care in which hospitals and other providers are compensated based on the patient's experience, cost, effectiveness, quality, and health outcome. There is intense rivalry among the providers, which drives reduce costs and increases pressure to improve care. It has been determined that value-based healthcare services are advantageous to patients, payers, providers, suppliers, and society in general. In order to improve health at a reduced cost, they concentrate on assisting patients in recovering quickly and preventing chronic diseases. Value-based health care services save society money on overall health care costs. For instance, in January 2023, Under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana program, the National Health Authority (NHA) introduced a new system to evaluate and grade hospital performance, shifting the focus from volume to value of healthcare services provided.

Several factors drive the industry, including the rise in healthcare costs, improvements in healthcare facilities, and the quick development of value-based healthcare services. Furthermore, key market players include Siemens Healthcare GmbH, Veritas Technologies LLC, Deloitte Touche Tohmatsu Limited, 3M, and NXGN Management, LLC. The global market for value-based healthcare services is driven by the rise in the prevalence of chronic diseases like diabetes and cancer in developing countries.   

For instance, in January 2023, the three innovative responsible care initiatives that CMS launched are the Medicare Shared Savings Program, the Kidney Care Choices (KCC) Model, and the Responsible Care Organization Realizing Equity, Access (ACO REACH) Model. It is projected that these actions will result in over 13.2 million Medicare enrollees receiving higher-quality care in 2023. The market will be increasing at a faster rate due to the rising incidence of chronic diseases, expanding government initiatives, and the growing desire for more integrated care delivery models.   

Report Coverage

This research report categorizes the market for global value-based healthcare services market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the global value-based healthcare services market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the global value-based healthcare services market.

Driving Factors

Value-based payment models, which place more importance on health outcomes than treatment volume, are gradually replacing traditional fee-for-service models in the healthcare payment systems of several countries. One of the main factors driving the growth of the value-based healthcare service market is this shift. Healthcare providers receive fees for each test and procedure under the fee-for-service model, which promotes higher service volume but ignores patient quality and outcomes. Government programs are one of the main factors driving the global market for value-based healthcare service market. For instance, on December 31, 2021, the original home health value-based purchasing model was approved by the Center for Medicare and Medicaid Innovation. The idea was developed to assist home healthcare providers across the nation who are certified by medicare in raising the standard and effectiveness of their treatment for patients.

Restraining Factors

Payment and billing procedures might occasionally restrict the value-based healthcare service market due to their historical reliance on fee-for-service models. Under these arrangements, healthcare professionals are paid based more on the quantity of services provided than on the quality or results attained. Clinicians are encouraged to explore cost-effectiveness, patient outcomes, and preventative treatment as a result. However, value-based healthcare attempts to provide superior care at lower costs by connecting incentives with patient outcomes.

Market Segmentation

The global value-based healthcare services market share is classified into model, deployment, and end user.

• The accountable care organization segment is expected to hold the largest share of the global value-based healthcare services market during the forecast period.   

Based on the model, the global value-based healthcare services market is divided into accountable care organizations, patient-centered medical homes, pay-for-performance, and bundled payments. Among these, the accountable care organization segment is expected to hold the largest share of the global value-based healthcare services market during the forecast period. Accountable Care Organizations (ACOs) are concentrating increasingly on telehealth capabilities, establishing collaborative agreements, and using data analysis to manage population health to enhance care coordination and patient outcomes. Accountable Care Organization (ACO) is a voluntary collaboration between physicians, hospitals, and other healthcare providers to provide Medicare beneficiaries with high-quality, coordinated care.  

• The cloud segment is expected to hold the largest share of the global value-based healthcare services market during the forecast period.   

Based on the deployment type, the global value-based healthcare services market is divided into cloud and on-premises. Among these, the cloud segment is expected to hold the largest share of the global value-based healthcare services market during the forecast period. Value-based healthcare is using the cloud more and more due to offers scalability, interoperability, and safe data storage. Cloud technology is used by organizations for data analytics, telemedicine, and collaborative therapy, which enhances patient outcomes and operational efficiency.  

• The hospitals segment is expected to hold the largest share of the global value-based healthcare services market during the forecast period. 

Based on the end user, the global value-based healthcare services market is divided into hospitals, clinics, insurance companies, government, and others. Among these, the hospitals segment is expected to hold the largest share of the global value-based healthcare services market during the forecast period. Value-based healthcare providers place a high value on patient care, data-driven decision-making using digital health technologies, and the application of care coordination strategies to improve outcomes while lowering costs.   

Regional Segment Analysis of the Global Value-based Healthcare Services Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

North America is anticipated to hold the largest share of the global value-based healthcare services market over the predicted timeframe.

North America is anticipated to hold the largest share of the global value-based healthcare services market over the predicted timeframe. The market for value-based healthcare services in North America is driven by patients' growing need for more conveniently available, practical, and reasonably priced care. The region's well-established healthcare system and major economic participants have a big influence on the market for value-based healthcare services. Value-based healthcare services are widely utilized in the US because clinicians are aware of the beneficial effects that early disease detection has on patient satisfaction and treatment effectiveness. 

Asia-Pacific is expected to grow at the fastest pace in the global value-based healthcare services market during the forecast period. The growing need has prompted the developing region to make investments in health care. In addition, people are becoming aware of the healthcare resources available to individuals. Numerous measures backed by the government have the potential to encourage the growth of value-based healthcare services in this region. Rising healthcare costs are driving the Asia Pacific value-based healthcare market, placing pressure on payers and governments to reduce spending.  

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the global value-based healthcare services market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Eli Lilly
• Walgreens and Pearl Health
• Baker Tilly US, LLP
• Change Healthcare
• Athena Healthcare
• Curation Health
• UnitedHealth Group
• McKesson Corporation
• Deloitte
• Sunshine Health
• Siemens Medical Solutions USA, Inc.
• Signify Health, Inc.
• Humana
• NXGN Management, LLC.
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In May 2024, Cityblock, a value-based healthcare provider for adult Medicaid beneficiaries, announced a collaboration with Sunshine Health, to provide primary care and care coordination services to high-need, hard-to-reach Medicaid members across 11 Central Florida counties. 

• In January 2024, Eli Lilly and Company launched LillyDirect, an end-to-end digital healthcare experience for individuals in the United States with obesity, migraine, and diabetes.

• In September 2023, Walgreens and Pearl Health, a leading provider enablement firm, announced a collaboration to accelerate the expansion of value-based care through community-based primary care providers.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the global value-based healthcare services market based on the below-mentioned segments: 

Global Value-based Healthcare Services Market, By Model

• Accountable Care Organization
• Patient-Centered Medical Home
• Pay for Performance
• Bundled Payments

Global Value-based Healthcare Services Market, By Deployment Type

• Cloud
• On-premises

Global Value-based Healthcare Services Market, By End User

• Hospitals
• Clinics
• Insurance Companies
• Government
• Others

Global Value-based Healthcare Services Market, By Regional

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa