Value-based Health Care Services Market: Overview
Value-based health care is a model, wherein providers such as hospitals are paid based on patient’s health outcome, quality, efficiency, cost, and patient experience. Intense competition among providers and increase in pressure to lower cost and improve care have led to a shift from volume-based health care to value-based health care. Value-based health care benefits patients, providers, payers, suppliers, and society. It focuses on helping patients toward quick recovery and avoid chronic diseases to achieve better health at lower costs. Providers achieve high patient satisfaction with better care efficiencies. Payers achieve cost control and reduced risk by spreading it among large number of patients. Value-based health care helps to reduce overall health care spending for society. Commonly used value-based health care models are pay for performance, accountable care organization, bundled payments, and patient-centered medical home. In pay for performance model, providers are paid by payers for meeting pre-measured performance thresholds. It is usually implemented by Medicare and private insurers. Accountable care organizations (ACOs) are groups of health care providers, such as hospitals and physicians, who work as a team to give coordinated high quality care to Medicare patients and each member shares risk and rewards. ACOs focus on data sharing among team members in order to achieve quality of care and positive health outcome with reduced costs. Bundled payments are single payment for all services for a specific treatment or condition such as spine surgery and cardiac procedures. In patient-centered medical home, patients have a provider and a team, providing continuous, accessible health care in order to achieve the best outcomes.
Value-based Health Care Services Market: Key Trends
Rapid development in value-based health care services acts as a major driver of the global value-based health care services market during forecast period. According to a survey by NEJM Catalyst, more than 40% of the U.S. health care executives think that value-based reimbursement will become primary revenue model for the U.S. at some point in time. However, lack of desired health care infrastructure and Internet connectivity in some regions in developing parts of world is expected to restrain the global value-based health care services market during the forecast period.
Value-based Health Care Services Market: Segmentation
The global value-based health care services market can be segmented based on model, deployment, platform, end-user, and region. In terms of model, the market can be classified into accountable care organization (ACO), patient-centered medical home (PCMH), pay for performance (P4P), and bundled payments. Based on deployment, the global value-based health care services market can be bifurcated into cloud-based and on-premise. In terms of platform, the market can be categorized into standalone and integrated. Based on end-user, the global value-based health care services market can be divided into providers (hospitals, clinics, and others) and payers (insurance companies, government, and others).
Value-based Health Care Services Market: Regional Analysis
In terms of region, the global value-based health care services market can be segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America dominated the global market in 2018 and is anticipated to continue its dominance during the forecast period due to health care reforms. The market in Asia Pacific is expected to expand at the highest CAGR owing to increase in research and development, surge in awareness, and improvement in health care infrastructure.
Value-based Health Care Services Market: Competitive Landscape
Major players operating in the global value-based health care services market include Deloitte, Siemens Healthcare GmbH, NextStep Solutions, athenahealth, Genpact, McKesson Corporation, and NXGN Management, LLC.
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.