The ongoing trends in the value-based healthcare service market have favored it to garner a revenue of around USD 3,281.2 million in 2024. The worldwide adoption of value-based healthcare services is spurring and could meet a growth rate of 6.5% during the forecast period. Analysis of the value-based healthcare industry trends suggests the market has the capacity to generate a revenue of USD 6,184.2 million by 2034.
| Report Attribute | Details |
|---|---|
| Value-based Healthcare Service Market Size (2024) | USD 3,281.2 million |
| Forecast Market Value (2034) | USD 6,184.2 million |
| Projected Growth Rate (2024 to 2034) | 6.5% CAGR |
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The market was valued at USD 1,868.9 million in 2019. From 2019 to 2023, the value-based healthcare services market registered a CAGR of 10.5%. The market value was about USD 3,261.7 million in 2023.
In a survey conducted among accountable care organizations, value-based payment models experienced a showdown during the pandemic crisis. Almost 60% quit their value-based contracting during this short-term period. Despite this, the response of the Centers for Medicare & Medicaid Services (CMS) to sustain value-based healthcare initiatives recovered after 2022.
| Attributes | Details |
|---|---|
| Value-based Healthcare Service Market Value (2019) | USD 1,868.9 million |
| Historical Market Revenue (2023) | USD 3,261.7 million |
| Historical CAGR (2019 to 2023) | 10.5% |
Principal Consultant
Advent of Digitization Altering the Mode of Delivering Medical Care
Due to digitization over time, healthcare policies and ways of delivering medical care have changed a lot. Greater collaborations will take place due to rapid expansion in value-based healthcare services.
Patients with any kind of disease will be diagnosed earlier through value-based healthcare with greater transparency. Therefore, rapid expansion in value-based healthcare services is driving the value-based healthcare services market growth.
Constantly Rising Chronic Diseases and Physical Disabilities Boost the Adoption
The increasing rate of chronic diseases is fueling the demand for value-based healthcare services. The rising incidence of chronic diseases is increasing the need for value-based care services across hospitals and clinics. With value-based care, patients can prevent and avoid chronic diseases before they start.
Ensuring reliable data in value-based healthcare services is a new challenge for administering medicare payment systems. Providers have to ensure the reliability of data as many of the payments are linked to quality and outcomes and also have to make sure the data is appropriate and resourceful.
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The table highlights some leading countries that have been identified varying with respect to regional clusters and relative product lifecycle (PLC) positions.
| Countries | CAGR (2024 to 2034) |
|---|---|
| United States | 1.9% |
| Germany | 3% |
| United Kingdom | 3% |
| China | 2.3% |
| South Korea | 1.8% |
The United States value-based healthcare service market is to witness an upswing at 1.9% CAGR from 2024 to 2034.
The count of patients in the United States who use home health monitoring systems is higher in comparison to other countries creating a higher demand for pay-for-performance healthcare market. Leading tech companies such as Qualcomm Life are also involved in the sales of wireless and cloud technology products used in the healthcare industry.
The demand for value-based healthcare services in Germany is expected to experience a 3% CAGR through 2034.
Recent advancements in IT systems and treatment technologies have stressed the impact of value-based core models in the German healthcare sector. Also, federal mandates are encouraging healthcare organizations to adopt advanced IT systems and technologies in order to improve patient care experience and care team communication. In addition to managing the cost of care at reasonable levels and incentivizing various elements of the system to work coherently to achieve this.
The United Kingdom value-oriented healthcare service market is poised to display a CAGR of 3% over the forecast period.
In the recent past, the NHS reform proposals indicated a move away from activity-based payments towards more capitated payment structures around people. These reforms support inventive, value-based contracting approaches, anchored around enhancing health outcomes. It generated an opportunity for value-focused healthcare market players to become part of the strategy to enhance population health outcomes.
The value-based healthcare service industry in China is progressing at a 3% CAGR through 2034.
Higher adoption of IoT-enabled network connectivity shows the potential of healthcare systems in remote areas of China. An efficient and well-integrated patient-centric system established by the Chinese government is empowering the value-based healthcare service providers in the country. The demand for value-based healthcare services is projected to go up owing to procurement reforms that emphasize value over cost.
The value-based healthcare service providers in South Korea intend to follow an average CAGR of 1.8% until 2034.
In South Korea, value-based healthcare services are largely being used as providers have understood, how they can achieve high patient satisfaction with better care efficiencies. Now the pace to embrace value-based healthcare services is picking up in the country and patient awareness is playing a greater role in stimulating the growth.
Based on the model type, patients are opting more for accountable care organizations with around 28.8% market share in 2024.
| Attributes | Details |
|---|---|
| Top Model Type | Accountable Care Organization (ACO) |
| Market Share in 2024 | 28.8% |
Patient trust is built by providing information about the cost in simple terms and this insight impels healthcare systems to drive down costs and deliver quality care. Patients explore options and choose the best-suited health system in their care process through accountable care organizations. However, the demand for patient-centered medical homes (PCMH) is observed to be witnessing a slightly higher growth rate.
Based on the deployment type, a greater adoption rate of cloud systems account for 64.5% of the market in 2024.
| Attributes | Details |
|---|---|
| Top Deployment Type | Cloud |
| Market Share in 2024 | 64.5% |
Wireless and cloud technologies in healthcare IT provide medical professionals and patients with fast and easy access to clinical data in a cost-effective manner. Wireless and cloud technologies are expected to grow rapidly in the healthcare sector. This could be attributed to the convenient and cost-effective means of communication between the healthcare organization and the consumer.
Leading players are focused on developing innovative remote clinical monitoring systems and clinical communication platforms for in-home and outpatient remote monitoring. Meanwhile, governments of emerging economies are trying to lessen the healthcare expenditure burden through holistic measures.
Network-enabled healthcare equipment with cloud connectivity can enable medical professionals to store and access the health data of patients in underdeveloped areas of the country.
The companies are focusing on entering into collaboration with other businesses that offer complementary products, services, and technologies, which strengthen their market coverage and enhance their technological capabilities.
This strategy helps the company deliver more innovation to empower companies to connect with their customers in a whole new way. The company focuses on enhancing its solutions for value-based healthcare by collaborating with leading players.
For instance, in March 2020, Baker Tilly and IBM MarketScan collaborated to help healthcare companies unlock their growth potential with real-world evidence strategies. This collaboration enables Baker Tilly to provide its client with a one-stop partner for real-world evidence generation.
| Attribute | Details |
|---|---|
| Estimated Market Size (2024) | USD 3,281.2 million |
| Projected Market Size (2034) | USD 6,184.2 million |
| Anticipated Growth Rate (2024 to 2034) | 6.5% |
| Forecast Period | 2024 to 2034 |
| Historical Data Available for | 2019 to 2023 |
| Market Analysis | USD million or billion for Value and Units for Volume |
| Key Regions Covered | North America; Latin America; Europe; Middle East & Africa (MEA); East Asia; South Asia and Oceania |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Germany, Spain, Italy, France, United Kingdom, Russia, China, India, Australia & New Zealand, GCC Countries, and South Africa |
| Key Segments Covered | By Product Type, By Application, By gdgdg, By End Use Verticals, and By Region |
| Key Companies Profiled | Siemens Healthcare GmbH; NextStep Solutions; McKesson Corporation; NextGen Healthcare; Genpact Limited; Athena Healthcare; Boston Consulting Group; Change Healthcare; Baker Tilly, USA, LLC; ForeSee Medical |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The market is estimated to be around USD 3,281.2 million in 2024.
The market is set to grow at a 6.5% CAGR during the forecast period.
The market is predicted to be valued at USD 6,184.2 million by 2034.
The market was valued at USD 1,868.9 million in 2019.
Accountable care organization is set to account for a 28.8% share of the market.
The market in France is predicted to witness a CAGR of 4.8% through 2034.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Model 5.1. Accountable Care Organization (ACO) 5.2. Patient-Centered Medical Home (PCMH) 5.3. Pay For Performance (P4P) 5.4. Bundled Payments 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Deployment 6.1. On-Premise 6.2. Cloud 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End User 7.1. Hospitals 7.2. Clinics 7.3. Insurance Companies 7.4. Government 7.5. Others 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 8.1. North America 8.2. Latin America 8.3. Western Europe 8.4. Eastern Europe 8.5. South Asia and Pacific 8.6. East Asia 8.7. Middle East and Africa 9. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 10. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 11. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 12. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 13. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 14. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 15. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. Siemens Healthcare GmbH 18.2. NextStep Solutions 18.3. McKesson Corporation 18.4. NextGen Healthcare 18.5. Genpact Limited 18.6. Athena Healthcare 18.7. Boston Consulting Group 18.8. Change Healthcare 18.9. Baker Tilly 19. Assumptions & Acronyms Used 20. Research Methodology
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Value-based Healthcare Service Market
