Discover trends, market shifts, and competitive outlooks for the value based care payment industry through 2025-2034 with The Business Research Company’s reliable data and in-depth research

#How Has the Value Based Care Payment Market Growth Performance Trended Historically, And What Lies Ahead?

The market size for value-based care payment has witnessed significant expansion in recent times. The size is projected to increase from $2.78 billion in 2024 to $3.11 billion in 2025, indicating a Compound Annual Growth Rate (CAGR) of 11.8%. This growth in the historical phase can be associated with substantial economic development in burgeoning markets, amplified healthcare spending, the escalating use of digital healthcare infrastructure and swift evolution in value-based healthcare services.

The market size of value based care payment is predicted to experience an accelerated increase in the following years, reaching an approximate value of $4.6 billion in 2029, with a compound annual growth rate (CAGR) of 10.3%. This surge during the forecasting period can be linked to advancements like the growth of the middle class in developing markets, a rise in the elderly population and an increased incidence of chronic illnesses. Key trends in the forecast period include a shift towards low-code platforms in value-based care, strategic mergers and acquisitions, an implementation of ideal care management strategies, the use of remote patient surveillance under reimbursable initiative for valued-based care and a boost in bundle payments.

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How Are Key Drivers in the Industry Acting as Catalysts for the Growth of theValue Based Care Payment Market?

The exponential growth of the value-based care payment market is being significantly fueled by the swift evolution of value-based health care services. A noticeable reduction in health care expenses as well as superfluous health expenditures has been achieved, with an average of 5.6% due to the adoption of this health model. UnitedHealth has projected that their medical care payments, equating to $75 billion, will be tied to value-based care associations. Additionally, Accountable Care Organizations (ACO) are also on the rise, thereby enhancing protection and coverage. As stated in an analysis published in the Journal of Health Affairs, over 1,000 ACOs are spread throughout the USA. These ACOs account for more than 1,400 contracts with commercial and government insurance agencies that cover more than 32 million Americans. The swift growth of value-based health care services is therefore advancing the demand for the value-based care payment market. This is being accomplished by increasing the effective approach towards services offered to customers, placing more emphasis on a value-based care model in contrast to a fee-for-service model.

Which Segments in the Value Based Care Payment Offer the Most Growth?

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

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What Are the Fastest-Growing Geographies in the #How Are Key Drivers in the Industry Acting as Catalysts for the Growth of theValue Based Care Payment Market?# 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

What Are the Current Market Growth and Trends in the Value Based Care Payment Industry?

Leading players in the market are progressively choosing mergers and partnerships to increase their presence and boost the growth of the value-based care payment market. The strategic union and amalgamation tactics adopted by these market players aids them in acquiring new technology, providing them a competitive edge. For example, in March 2023, CVS Health, a healthcare company based in the US, bought Signify Health for an undisclosed sum. The joined entity aims to improve healthcare delivery capabilities, reduce expenses, enhance engagement levels, and ensure wide access to top-notch care, specifically for Medicare Advantage patrons. Signify Health is an American firm offering value-based care payment solutions.

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What Are the Key Elements That Define the Value Based Care Payment Market?

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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