Value-based Healthcare Services Market: Introduction
Value-based health care is a type of service, and the providers, such as hospitals, are paid on the basis of patient experience, cost, efficiency, quality, health outcome of the patient. The cost is lowered due to an increase in pressure to improve care and lower cost by intense competition between the providers. Value-based healthcare services are found to be beneficial to society, suppliers, payers, providers and most importantly, patients. They focus on helping patients recover rapidly and avoid chronic diseases to achieve better health at lower costs. Overall health care spending for society is reduced by value-based health care service. Commonly used value-based health care models are pay for patient-centered medical home, bundled payments, accountable care organization, and performance.
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Key Drivers, Restrains, and Opportunities of Global Value-based Healthcare Services Market
- Value-based healthcare services are developing rapidly, which is a major factor that is estimated to drive the global value-based healthcare services market during the forecast period. According to a survey by NEJM Catalyst, approximately 40% of U.S. health care workers think that at some point in the future, value-based reimbursement would be the primary revenue model for the U.S. However, the lack of internet connectivity and desired health care infrastructure in developing countries of Asia Pacific is expected to restrain the global value-based healthcare services market during the forecast period.
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- The COVID-19 pandemic is posing a huge challenge to the whole world since 2022. This infection leads to multiple organ failure, pneumonia, severe and acute respiratory disorders and in severe cases, death. COVID-19 has prompted the launch and modification of care delivery to more virtual models. It also has proven the high value of remote monitoring. Providers are monitoring patients’ health status and behaviors via devices and wireless apps more often, instead of visiting the office. Not only is virtual care more convenient and less expensive, but it also flags changes in behaviors or health status in real-time. Currently, issues are addressed immediately instead of waiting for changes to escalate into expensive visits to the emergency room or medical specialists.
- Governments of developing countries are making significant investments to modernize healthcare infrastructure in their respective countries, which is likely to increase access to healthcare. This is expected to increase the demand for value-based healthcare services. An increase in the prevalence of chronic diseases, such as cancer and diabetes, in developing countries presents lucrative opportunities in the global value-based healthcare services market.
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North America to Capture Major Share of Global Value-based Healthcare Services Market
- North America is expected to account for a major share of the global value-based healthcare services market due to a rise in the demand among patients for more affordable, convenient, and immediate care. Moreover, well-established healthcare infrastructure and hub for key industry players are major drivers of the value-based healthcare services market in the region.
- The value-based healthcare services market in Asia Pacific is estimated to expand at a rapid pace during the forecast period owing to a rise in providers’ growing business imperative to meet those three patient demands. Moreover, a boom in artificial intelligence and machine learning technologies that power telemedicine capabilities in Asia Pacific is likely to propel the market in the region.
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Key Players Operating in Global Value-based Healthcare Services Market
The global value-based healthcare services market is highly concentrated due to the presence of key players. Growth strategies adopted by leading players are likely to drive the global value-based healthcare services market.
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