U.S. Value-Based Healthcare Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

U.S. Value-Based Healthcare Market Size

U.S. Value-Based Healthcare Market Trends and Growth Drivers

Big Data Integration Is Key Trend in Market

• One of the key trends in the market is the integration of big data.
• Big data is primarily supporting population health management activities, which is an important aspect of its use.
• It can evaluate data from a large population, which enables organizations to identify high-risk patients and continuously monitor the effects of the care initiatives under implementation.
• Healthcare systems generate data from different sources, such as financial, operational, clinical, and patient reports.
• With the integration of big data, these data can be combined effectively to provide valuable insights.
• Moreover, its analysis helps in the early detection of high-risk patients and accurate risk classification.

Increasing Need for High-Quality Treatment Is Major Driver of Market

• The strong demand for high-quality care, as most patients seek facilities that can provide notable experience and outcomes, is one of the main factors propelling the market's expansion.
• Moreover, with the increasing rate of chronic diseases and the elderly population, the market is growing rapidly.
• As per a report, chronic diseases are one of the most common and expensive health problems in the U.S. Approximately 133 million, or about half of all Americans, suffer from at least one chronic disease.
• Additionally, many patients now have higher expectations for better treatment due to the technical improvements in the industry, which is driving the demand for value-based care propositions.

Payment Systems and Balancing Compensations Are Major Challenges for the Market

• The payment methods, which range from fee-for-service to value-based service models, are one of the main challenges for the market.
• These models come with several risks, including the need to build advanced metrics, an increase in administrative work, and financial unpredictability.
• Furthermore, value-based models can include fines because providers are required to pay for every service.
• If the provider fails to meet a certain benchmark, they have to pay higher costs.
• Furthermore, providers must deal with multiple market participants, each of whom has unique payment policies.
• This can lead to disputes and an increase in the amount of administrative work that needs to be done.

U.S. Value-Based Healthcare Market Analysis

Deployment Insights

• The cloud-based technology is holding the larger market share, of 70%, in 2024 due to the integration of cloud technology into the system, as it enables machine learning and data analytics applications.
• Moreover, healthcare professionals can improve collaboration with this technology since it allows several providers—including nurses, doctors, and administrative staff—to share and access patient data in real-time, regardless of the patient's location.
• Additionally, data management and storage capacities are among the key advantages of using cloud technology in the U.S. The market cannot function effectively without managing and organizing the vast amounts of data.

The deployment models included in this report are:

• Cloud (Larger Category)
• On-Premises (Faster-Growing Category)

Model Insights

• Accountable care organizations will hold the largest market share, of 45%, in 2024 and are expected to do the same in the coming few years.
• Accountable care organizations are flexible, which means they can be used by different healthcare organizations as per demand.
• Additionally, ACOs can manage an extensive number of patients by using data analytics and health IT.
• Moreover, several ACOs take part in shared savings programs, which are healthcare payment models that offer incentives to providers that lower total costs without negatively impacting the organization.

The models included in this report are:

• Accountable Care Organization (Largest Category)
• Patient-Centered Medical Home
• Pay for Performance
• Bundled Payments (Fastest-Growing Category)

End User Insights

• Hospitals hold the largest market share, in 2024 due to their interaction capabilities with a wide range of patients.
• Moreover, hospitals have all the facilities, such as infrastructure, human resources, and financial capacity, which are the most important to implement value-based healthcare strategies. Additionally, several prominent hospitals have strong relationships with important communities, which helps them gain support for health projects and improve patient outcomes.
• For instance, the Mayo Clinic, a family of clinics, hospitals, and other healthcare facilities serving more than 60 communities.

The end users analyzed in the report are:

• Hospitals (Largest Category)
• Clinics
• Insurance Companies (Fastest-Growing Category)
• Government Agencies
• Others

Regional Analysis

Midwest Is Largest Regional Market

• Midwest is leading the U.S. value-based healthcare market by holding 35% market share in 2024.
• Midwest benefits from its long history of evolving healthcare.
• Moreover, the Midwestern region is a base of several value-based healthcare clinics, such as Geisinger Health and Mayo Clinic.
• The policies in this region also support the market through several initiatives.
• For instance, many accountable care organizations are using health information exchange and electronic health records.

The regions analyzed in this report are:

• Northeast
• Midwest (Largest Region)
• West
• South (Fastest-Growing Region)

U.S. Value-Based Healthcare Market Share

The U.S. value-based healthcare market is highly competitive due to the presence of several large players, such as Koninklijke Philips N.V., Amedisys Inc., and L’AIR LIQUIDE S.A. The government is contributing by taking initiatives to fund R&D for healthcare innovations and promoting interoperability.

U.S. Value-Based Healthcare Market News

• In May 2024, Kaiser Permanente deployed Innovaccer’s value-based care AI across Washington.
• In January 2024, ApolloMed and BASS Medical Group established a value-based healthcare partnership.
• In September 2023, Walgreens and Pearl Health announced a strategic partnership to advance value-based care delivery.