According to FMI’s analysis, the market for value-based healthcare services would expand at a CAGR of 21.1% during the forecast period. The value of the sector is projected to rise from US$ 3 billion in 2023 to US$ 20.5 billion by the end of 2033.
By 2033, the value-based healthcare services market is anticipated to be worth US$20.5 billion. As they provide various payment models such accountable care organisations, bundled payments, pay-for-performance, and patient-centered medical homes, value-based healthcare services are becoming more and more in demand. The services they provide frequently depend on what the customers want. Also, the global market for value-based healthcare services is anticipated to grow over the projected period due to the increased use of social tools, mobile apps, and real-time analytics.
Rising healthcare costs and increasing pricing for healthcare services are what are driving the demand for value-based healthcare services. The demand for preventive therapies, such as value-based healthcare services, is being driven by the growing demand for better healthcare outcomes and reduced costs. The possibility for the introduction of a value-based healthcare system is also being increased by the growing demand for patient-centric and disorganised therapy.
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The rise in chronic diseases is fueling the desire for value-based healthcare. Additionally, the industry is growing as a result of the rising death rate. For instance, the United States saw approximately 2,50,000 fatalities in 2018. Statistics show that, after heart disease and cancer, medical errors were the third leading cause of death in the nation. Additionally, the need for value-based healthcare services is rising as a result of the enormous amounts of money that are wasted on avoidable medical problems or unnecessary treatments.
Key Takeaways from the Value-based Healthcare Services Market:
- The United States value-based healthcare services market is projected to lead the global market. By 2033, the market is forecast to generate the largest revenue of US$ 3.1 Bn, growing at a CAGR of 19.1%.
- The United Kingdom is forecast to emerge as the fastest growing value-based healthcare services market, growing at a CAGR of 25% over the forecast period. The market is predicted to attain US$ 1.4 Bn by 2033 end.
- In the APAC region, China is projected to lead the regional market, attaining market valuation of US$ 1.7 Bn by 2033. The market is projected to grow at a CAGR of 22% over the forecast period.
- Under the model category, accountable care organization segment is projected to dominate the global market. The segment is forecast to exhibit a CAGR of 20.2% between 2023-2033.
- By deployment type, on-premise is estimated to witness largest growth. Over the stipulated time-frame, the segment is projected to grow at a CAGR of 21.2%, up from 20% CAGR witnessed in the past period.
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News Featuring Market Developments by Companies Providing Value-based Healthcare Services:
- In October 2021, a holding company by the name of Walgreens Boots Alliance, invested in VillageMD for a total US$ 5.2 Bn. With this partnership, both the companies would substantially increase the access for primary care in underserved rural as well as urban regions.
- In June 2021, Humana announced that it is acquiring One Homecare Solutions from WayPoint Capital Partners. With this acquisition, the former company would better the value-based care in the category of in-home healthcare services.
- In June 2021, Humana also acquired League, which is a digital health company. The acquisition was aimed at creating a new digital platform for specialty insurance members as well as Humana employer group.
Some of the players competing in the value-based healthcare services market include:
- Siemens Healthcare GmbH
- NextStep Solutions
- McKesson Corporation
- NextGen Healthcare
- Genpact Limited
- Athena Healthcare
- Boston Consulting Group
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Value-Based Healthcare Services Market by Category
Model:
- Accountable Care Organization (ACO)
- Patient-centered Medical Home (PCMH)
- Pay For Performance (P4P)
- Bundled Payments
Deployment:
- On-premise
- Cloud
End User:
- Hospitals
- Clinics
- Insurance Companies
- Government
- Others
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