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What Growth Opportunities are Expected to Drive the Value Based Care Payment Market’s CAGR Through 2034?

The value-based care payment market has witnessed substantial growth in recent times. The market is projected to expand from $2.78 billion in 2024 to $3.11 billion in 2025, with a compound annual growth rate (CAGR) of 11.8%. Factors such as robust economic development in emerging markets, increased healthcare spending, the prevalent use of digital healthcare infrastructure, and swift advancement in value-based health care services have contributed to the growth during the historical period.

The market size for value-based care payment is projected to experience a significant surge in the coming years, reaching a valuation of $4.6 billion by 2029 with a compound annual growth rate (CAGR) of 10.3%. This growth for the projected period can be linked to factors such as an increase in the elderly population, expansion of the middle-class demographic in developing markets, and a higher incidence of chronic conditions. Key trends to observe during this forecast period include the emphasis on low-code platforms for value-based healthcare, strategic mergers and acquisitions, the execution of an effective care management strategy, the provision of remote patient monitoring as a reimbursable initiative for valued-based care, and an increase in bundled payments.

What External and Internal Drivers Are Contributing to the Growth of the value based care payment Market’s Growth?

The remarkable rise seen in the value-based care payment market has been fuelled significantly by the swift progression in value-based health care services. The regular healthcare expenditure and the unnecessary costs have seen a reduction of nearly 5.6% on average due to this evolution. UnitedHealth estimates that value-based care will be linked to payments of $75 billion to its healthcare providers. Simultaneously, the number of Accountable Care Organizations (ACO) is on the rise, providing increased coverage and security. An analysis published in the Journal of Health Affairs indicates this growth, revealing that over 1,000 ACOs are spread throughout the United States – these acounts correlate with over 1,400 contracts with commercial and governmental insurers and comprise coverage of over 32 million Americans. As such, the quick development in value-based health care services is propelling the demand for value-based care payment market, fostering improved usage of services and focusing more on a value-based care model compared to the traditional fee-for-service model.

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What Are the Leading Industry Players Dominating the Value Based Care Payment Market?

Major companies operating in the value based care payment market include:

• McKesson Corporation_x000D_

• Change Healthcare_x000D_

• Premier Inc_x000D_

• NextGen Healthcare Inc._x000D_

• FinThrive_x000D_

What Are the Latest Trends Leading to Disruption in the Value Based Care Payment Market?

Leading participants in the market are progressively choosing acquisitions and partnerships to bolster and broaden their presence, which contributes to the growth of the value-based care payment market. The tactical combinations and takeovers, along with the alliances created by these market players, afford them the opportunity to gain an edge through adopting exclusive technological advancements. For example, in March 2023, CVS Health, an American healthcare firm, bought Signify Health, for an undisclosed sum. The merged firm aims to amplify its care delivery competencies, cut costs, heighten levels of user engagement and facilitate extensive access to superior quality care, particularly for Medicare Advantage clients. Signify Health is a US-founded organization offering value-based care payment solutions.

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Which Key Segments of the Value Based Care Payment Market Are Poised for Growth and Innovation?

The value based care payment market covered in this report is segmented –

1) By Model: Accountable Care Organization (ACO), Bundled Payments, Patient-Centered Medical Home (PCMH), Pay For Performance (P4P)

2) By Deployment Type: Cloud Based, On-Premise

3) By End User: Providers, Payer

Subsegments:

1) By Accountable Care Organization (Aco): Medicare Acos, Commercial Acos, Medicaid Acos

2) By Bundled Payments: Single Episode Of Care, Multi-Episode Care, Condition-Specific Bundles

3) ByPatient-Centered Medical Home (Pcmh): Level 1 Pcmh, Level 2 Pcmh, Level 3 Pcmh

4) By Pay For Performance (P4p): Hospital-Based P4p Programs, Physician-Based P4p Programs, Specialty-Based P4p Programs

Which Regions Are Significant to the Growth of the Value Based Care Payment Market?

North America was the largest region in the value-based care payment market in 2024. 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

How Can We Define the Value Based Care Payment Market and Its Key Components?

A value-based care payment is a type of payment that compensates providers for both efficiency and effectiveness by linking payments for care delivery to the level of care they deliver. Value-based care payment is a system in which healthcare providers such as hospitals are paid based on patient’s health outcome, quality, efficiency, cost, and patient experience.

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