Value Based Care Payment Market Report 2025

The value based care payment market size has grown rapidly in recent years. It will grow from $2.78 billion in 2024 to $3.11 billion in 2025 at a compound annual growth rate (CAGR) of 11.8%. The growth in the historic period can be attributed to strong economic growth in emerging markets, a rise in healthcare expenditure, growing usage of digital healthcare infrastructure and a rapid development in value-based health care services.

The value based care payment market size is expected to see rapid growth in the next few years. It will grow to $4.6 billion in 2029 at a compound annual growth rate (CAGR) of 10.3%. The growth in the forecast period can be attributed to an increase in the aging population, growth of the middle-class in emerging markets and a rising prevalence of chronic diseases will drive the growth. Major trends in the forecast period include focus on low-code platforms for value-based care, strategic mergers and acquisitions, implementation of optimal care management strategy, remote patient monitoring as a reimbursable initiative for valued based care and an increase in bundle payments.

The substantial growth in the value-based care payment market is expected to be fueled by the rapid development of value-based healthcare services. This progress has significantly contributed to reducing the healthcare cost curve and unnecessary expenditures, with an average reduction of about 5.6%. UnitedHealth, for example, has anticipated that $75 billion of its payments to medical care providers will be linked to value-based care relationships. Additionally, the proliferation of Accountable Care Organizations (ACO) is providing increased protection and coverage. According to a Journal of Health Affairs analysis, there were over 1,000 ACOs across the USA, representing more than 1,400 contracts with commercial and government insurers, covering over 32 million Americans. Consequently, the swift expansion of value-based healthcare services is stimulating demand in the value-based care payment market by emphasizing effective service utilization based on the value-based care model rather than the fee-for-service model.

The anticipated growth of the value-based care payment market is also driven by rising health spending. Health spending refers to the total financial allocation or expenditure on healthcare services and products within a specific region, country, or healthcare system. Within the framework of Value-Based Care, health spending is tied to specific health outcomes, with financial incentives linked to positive patient results, such as improved health, decreased hospital readmissions, or enhanced chronic condition management. For example, in May 2023, a report by the UK’s Office for National Statistics indicated that between 2022 and 2023, healthcare spending in the UK rose by 5.6%, compared to a 0.9% increase in 2022. Total healthcare expenditure in the UK reached approximately $317.63 billion (£292 billion) in 2023. This upward trend in health spending is thus a key factor fueling the growth of the value-based care payment market.

The growth of the value-based care payment market is expected to be driven by rising health spending. Health spending represents the total expenditure allocated toward healthcare services and products within a given region, country, or healthcare system. In value-based care, health spending is linked to achieving specific patient outcomes, where financial incentives are provided for delivering positive results such as improved health, lower hospital readmissions, and better chronic condition management. For instance, the Centers for Medicare & Medicaid Services' 2021-2030 National Health Expenditure report projected that national health spending would grow by an average of 5.1% per year from 2021 to 2030, reaching nearly $6.8 trillion. Additionally, Medicare spending is expected to grow at an annual rate of 7.2%, while Medicaid spending is anticipated to increase by 5.6% annually during this period. As a result, rising health spending is fostering growth in the value-based care payment market.

Leading companies in the value-based care payment market are increasingly focused on launching innovative products, such as those powered by artificial intelligence (AI), to gain a competitive advantage. AI involves developing computer systems capable of performing tasks that typically require human intelligence, including learning, reasoning, and problem-solving. For example, in March 2024, MedeAnalytics, a U.S.-based healthcare analytics company, introduced its Value-Based Care Administration solution. This AI-enabled contract management, payment, and billing solution is the first comprehensive, end-to-end analytics platform designed specifically for value-based care. It supports payers, providers, and healthcare administrators by enhancing quality, cost management, health equity, patient satisfaction, and other critical outcomes.

In March 2022, Signify Health, Inc., a Texas-based value-based healthcare platform, made an undisclosed acquisition of Caravan Health. This strategic move enables Signify Health to achieve a broader range of value-based and shared savings models, including advanced primary care, specialty care bundles, and total cost of care programs. Caravan Health, a U.S.-based company specializing in value-based payment healthcare, is now part of Signify Health through this acquisition.

Major companies operating in the value based care payment market include McKesson Corporation, Change Healthcare, Premier Inc, NextGen Healthcare Inc., FinThrive, Inc., Unitedhealth Group Inc., Edifecs, Nuna Inc., OM1, Relias, JD Health, Alibaba Health Information Technology Ltd, Ping An Healthcare And Technology Co. Ltd., Tencent Holdings Ltd, Wedoctor Holdings (Zhejiang) Co. Ltd., Huma, Cera, Lumeon, Helios Gesundheit, Doctorlink, Cigna, GE Healthcare, Siemens Medical Solutions USA, Inc., Etyon Health, Fresenius Medical Care, Medtronic PLC, 3M Healthcare Service Group, F. Hoffmann-La Roche AG, Dickinson And Company, Acelity L.P., Dupatri, Vibe Saúde, Butterfly, Plim, Guepardo Sistemas, Afya Ltd, Glic, Iclinic Desenvolvimento De Software Ltda, Glucare Integrated Diabetes Center, Clalit Health Services, Nextstep People Solutions, Athena Health.

North America was the largest region in the value-based care payment market in 2024. Western Europe was the second largest region in value-based care payment market share. The regions covered in the value based care payment market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the value based care payment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

A value-based care payment is a form of compensation for healthcare providers that takes into account both efficiency and effectiveness, linking payments to the level of care they provide. In this system, providers such as hospitals receive payments based on the health outcomes, quality, efficiency, cost, and overall experience of the patients they serve.

The primary models within the realm of value-based care payment include Accountable Care Organizations (ACO), Bundled Payments, Patient-Centered Medical Homes (PCMH), and Pay for Performance (P4P). An Accountable Care Organization is a healthcare entity where provider compensation is tied to quality metrics and measures aimed at reducing costs. These models aim to connect payments with the value and outcomes of healthcare services delivered.

The value-based care payment market research report is one of a series of new reports that provides value-based care payment market statistics, including value-based care payment industry global market size, regional shares, competitors with a value-based care payment market share, detailed value-based care payment market segments, market trends and opportunities, and any further data you may need to thrive in the value-based care payment industry. This value-based care payment market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The value-based care payment market includes revenues earned by entities by providing hospital value-based purchasing programs (VBP) and value-based care services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 3-5 business days.