PUBLISHER: The Business Research Company | PRODUCT CODE: 1751156
PUBLISHER: The Business Research Company | PRODUCT CODE: 1751156
Value-based care service is a healthcare delivery model that encourages providers to improve patient outcomes and overall health quality by focusing on preventive care, coordinated treatment, and evidence-based practices. It ties reimbursement to measurable performance metrics rather than the volume of services provided. This model enhances patient satisfaction, reduces healthcare costs, and improves clinical efficiency by promoting proactive disease management, minimizing hospital readmissions, and fostering interdisciplinary collaboration across the healthcare system.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The main types of models in value-based care service include pay for performance, patient-centered medical home, shared savings, shared risk, bundled payment, and capitation models. Pay for Performance is a reimbursement model that financially incentivizes healthcare providers based on the quality, efficiency, and outcomes of care delivered, rather than the volume of services provided. Payments are linked to predefined performance metrics such as patient satisfaction, preventive care, and clinical effectiveness. Payers in this model include Medicare, Medicaid, commercial insurance, and others, with services provided by home health care, institutional care, hospital therapy, and others. End-users of these models include hospitals, clinics, insurance companies, government entities, and other healthcare organizations.
The value-based care services market research report is one of a series of new reports from The Business Research Company that provides value-based care services market statistics, including value-based care services industry global market size, regional shares, competitors with a value-based care services market share, detailed value-based care services market segments, market trends and opportunities, and any further data you may need to thrive in the value-based care services industry. This value-based care services 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 service market size has grown strongly in recent years. It will grow from $3.78 billion in 2024 to $4.15 billion in 2025 at a compound annual growth rate (CAGR) of 9.9%. The growth observed during the historic period can be attributed to rising healthcare costs, an increasing focus on patient outcomes, the growth of accountable care organizations (ACOs), the expansion of bundled payment models, and the growing use of predictive analytics.
The value-based care service market size is expected to see strong growth in the next few years. It will grow to $6.04 billion in 2029 at a compound annual growth rate (CAGR) of 9.8%. The growth projected during the forecast period can be attributed to the expansion of alternative payment models (APMs), increasing medicare and medicaid enrollment, rising demand for personalized care, growing adoption of telehealth, and a greater focus on preventive care. Key trends during this period include advancements in healthcare analytics, a shift from fee-for-service models, the integration of artificial intelligence (AI) in healthcare, the use of AI and machine learning, and continued progress in digital health platforms.
The growing emphasis on population health management is expected to drive the expansion of the value-based care service market in the future. Population health management is a proactive healthcare approach that aims to improve health outcomes for a defined group of individuals by utilizing data analytics, preventive care, care coordination, and evidence-based interventions. This strategy helps manage chronic diseases, reduce health disparities, and promote overall well-being. The increasing focus on population health management is driven by the need to improve health outcomes while also controlling healthcare costs. By addressing health at the population level, healthcare providers can identify common health risks, encourage preventive care, and more effectively manage chronic conditions. Value-based care services play a critical role in this transition by aligning financial incentives with patient health outcomes, fostering multidisciplinary collaboration, and prioritizing preventive measures and long-term patient engagement. For example, in April 2023, the U.S. Bureau of Labor Statistics reported that employment of medical and health services managers is projected to grow by 29% between 2023 and 2033, significantly higher than the average growth rate for all occupations. This trend illustrates the growing demand for value-based care services driven by population health management.
Leading companies in the value-based care service market are developing innovative solutions, such as healthcare analytics, to enhance patient outcomes and improve healthcare efficiency. Healthcare analytics involves using patient and treatment data to help healthcare providers make better decisions and improve care delivery. It supports value-based care services by helping identify the most effective treatments, improve health outcomes, and reduce unnecessary costs. For example, in October 2023, Milliman MedInsight, a U.S.-based healthcare analytics company, launched an enhanced Value-Based Care Platform designed to help healthcare organizations perform better under value-based care models. The upgraded platform provided advanced tools to analyze patient data, track health outcomes, manage costs, and improve care coordination. This solution enables healthcare providers to make better decisions by identifying effective treatments, optimizing resource use, and delivering higher-quality care.
In May 2024, Cityblock Health, a U.S.-based healthcare company, partnered with Sunshine Health to improve patient-centered, coordinated, and outcome-driven healthcare delivery. This collaboration aims to create a value-driven healthcare model for Medicaid beneficiaries by integrating primary care, behavioral health, and social support services. The partnership leverages multidisciplinary teams and advanced technology to improve patient engagement, outcomes, and healthcare efficiency while reducing avoidable hospitalizations and emergency visits. Sunshine Health, a U.S.-based managed care organization, provides value-based care services.
Major players in the value-based care service market are UnitedHealth Group Incorporated, McKesson Corporation, Cigna Healthcare, Anthem Insurance Companies Inc. (Elevance Health), Kaiser Permanente, Humana Inc., Blue Cross and Blue Shield of Minnesota, Genpact Limited, VillageMD, MVP Health Care, Agilon Health Inc., Oak Street Health, Privia Health Group Inc., Evolent Health, ChenMed LLC, Aetna Inc., Aledade Inc., Somatus Inc., Equality Health LLC, Wellvana Health LLC, Tandigm Health, ForeSee Medical Inc.
North America was the largest region in the value-based care service market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in value-based care service report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the value-based care service market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The value-based care service market includes revenues earned by entities by providing preventive care, chronic disease management, care coordination, patient education, and wellness support services and related telehealth services, remote patient monitoring, and post-acute 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.
Value-Based Care Service Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on value-based care service market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for value-based care service ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The value-based care service market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.