Value-based Healthcare Service Market-USA

Value-based healthcare service market refers to a healthcare delivery model that emphasizes the value of healthcare services provided to patients rather than the volume of services provided.

This approach is based on delivering high-quality care that improves patient outcomes and reduces healthcare costs over the long term.

This market includes various services, including preventive care, chronic disease management, and care coordination.

Market Size and Potential Growth

The US value-based healthcare service market was valued at $3.22 trillion in 2021 and $3.46 trillion in 2022.

By 2030, the US value-based healthcare service market is expected to reach $6.16 trillion, with a CAGR of approximately 7.5% from 2023 to 2030.

The growth of the value-based healthcare service market in the US is driven by several factors, including an aging population, increasing prevalence of chronic diseases, rising healthcare costs, and the need for more efficient and effective healthcare delivery models.

The adoption of value-based care models by healthcare providers and payers, advancements in healthcare technology, and supportive government policies and regulations also contribute to the growth of the US value-based healthcare service market.

Market Dynamics and Stats

Investment in Value-Based Primary Care Services

➟ In 2021, Walgreens Boots Alliance invested $5.2 billion in VillageMD, a primary care platform, and value-based primary care service provider.

➟ The investment increased WBA’s ownership stake in VillageMD to 63% from 30%.

➟ This investment has been expected to enhance primary care access in underserved areas.

Intense Competition in US Value-Based Healthcare Service Market

➟ The Pay for performance model accounted for the largest revenue share of 29% due to the growing shift away from traditional fee-for-service toward payment for value-based healthcare programs.

➟ The US value-based healthcare service market has been characterized by high competition.

➟ Many players have been adopting strategies such as investments, partnerships, collaborations, mergers & acquisitions, and expansions to improve their market penetration.

Market Segmentation – Providers Utilization Category

According to the US Value-based Healthcare Service Market data from 2021, Home Health Care has a market share of 22%, Institutional Care at 30%, Self-Care at 34%, and Hospital Therapy at 14%.

The high utilization of self-care services suggests that individuals are taking greater responsibility for their health and well-being, possibly due to increased access to health information and digital health tools.

The significant utilization of institutional care and home health care services indicates the growing need for medical care in aging populations, driving demand for value-based care models prioritizing patient outcomes and cost-effectiveness.

Cost Savings and Benefits of Hospital-at-Home Settings in the US Value-Based Healthcare Market

According to the American Journal of Managed Care (AJMC), in 2021, patients treated in a hospital-at-home setting had a 19% decrease in healthcare management costs compared to those treated in a hospital environment.

This highlights the potential cost savings and benefits of utilizing home healthcare services in the US value-based healthcare market.

This cost decrease in home healthcare management suggests the potential benefits of hospital-at-home settings for patients, particularly those with chronic conditions or requiring long-term care.

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Data Sources: Grand View Research, Allied Market Research, Research And Markets, and other sources.

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