New York, Feb. 11, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Value Based Care Payment Global Market Report 2022" - https://www.reportlinker.com/p06229194/?utm_source=GNW
94 billion in 2021 to $2.20 billion in 2022 at a compound annual growth rate (CAGR) of 13.3%. The growth is mainly due to the companies resuming their operations and adapting to the new normal while recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $3.40 billion in 2026 at a CAGR of 11.5%.
The value based care payment market consists of sales of value based care payment services by entities (organizations, sole traders and partnerships) that provide value based care payment in which healthcare providers such as hospitals are paid based on patient’s health outcome, quality, efficiency, cost, and patient experience. Only goods and services traded between entities or sold to end consumers are included.
The main types of models in value based care payment are accountable care organization (ACO), bundled payments, patient-centered medical home (PCMH), pay for performance (P4P).A healthcare organization that connects provider compensation to quality measurements and cost-cutting measures is known as an accountable care organization.
The different deployment modes include cloud based, on-premise and is used in various sectors such as providers, payer.
Rapid development in value-based health care services is expected to contribute to the tremendous growth of the market. Healthcare cost curve and unnecessary health expenditure have been reduced to almost 5.6% on average due to value based healthcare services. According to UnitedHealth Group, a US-based health insurance company, in 2019, value based payments to healthcare providers have recorded a growth of more than 15% supporting incentives to practice supreme quality care while enhancing the effective use of health system resources. Furthermore, UnitedHealth predicted that $75 billion of its payments to medical care providers will be attached to value-based care relationships by the end of 2020. Likewise, the quantity of Accountable Care Organizations (ACO) is expanding, giving more protection inclusion. For example, according to the analysis in the Journal Health Affairs, there were more than 1,000 ACOs spread across the USA, which represented more than 1,400 contracts with commercial and government insurers covering more than 32 million Americans. Therefore, rapid expansion in value-based health care services is driving the market by increasing the effective usage of services provided to customers focusing on value-based care model rather than the fee-for-service model.
The lack of health care infrastructure is expected to limit the growth of value based care payment market.The main reason for this dearth is the lack of willingness of organizations to take the technological risk.
For instance, according to a survey, a large portion of the organizations are yet to embrace artificial intelligence (AI) to accelerate value-based care.About 43% of healthcare organizations are uncertain about actualizing AI and another 21% are not prepared for any AI-related innovation.
Moreover, only 13% are prepared for AI and have an execution plan set up attributing to the lack of trained staff with knowledge of data analytics.In addition to this, according to a survey of 2,900 medicinal executives through the span of a year, many healthcare facilities lack the infrastructure to integrate patient data effectively, which implies that value-based care payment cannot be used in these organizations.
These factors are expected to impact healthcare infrastructure by limiting the growth of value based care payment market.
Partnerships in value based care are gaining popularity among the providers as these partnerships allow partners such as manufacturers, payers, and provider organizations to co-develop programs, solutions, and initiatives collaboratively for the benefit of patients and healthcare systems.Value-based partnerships assist with conveying the highest value incentive to the healthcare system and society by concentrating on improving patient results with regards to the system and societal total costs.
For instance, in June 2021, Humana, a US based health insurance company acquired value-based home healthcare partner One Homecare Solutions (onehome) from WayPoint Capital Partners to enhance value-based care in home healthcare services.
In August 2019, Signify Health, a US-based technology company that supports in-home care and provides care management services announced its plan to merge with Remedy Partners.The merger helps the two companies to bring together technology, data, and network assets, including 9,000 credentialed providers and a combined nationwide partner network of over 300 provider systems, 2,000 post-acute organizations, and over 200 community locations.
Remedy Partners is a US-based software company that collaborates with healthcare organizations to launch bundled payment programs.
North America was the largest region in the value based care payment market in 2021.Western Europe was the second largest region in value based care payment market.
The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the value based care payment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK and USA.
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