The market for value-based healthcare services is expected to be worth $20.5 billion by 2033. As payment models such as accountable care organisations, bundled payments, pay for performance, and patient-centered medical homes become more popular, the demand for value-based healthcare services grows. The services they provide are frequently dependent on the needs of the users. Furthermore, the increasing use of social tools, mobile apps, and real-time analytics is expected to drive the global value-based healthcare services market during the forecast period.
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Government initiatives are pushing healthcare service providers to rely on value-based care which is further proliferating the need for value-based healthcare services. For many countries, value-based care is at the forefront of future medical regulations and treatments. For instance, the U.S. government is implementing value-based care model across the country to treat the overall health of a patient rather than only reacting to symptoms of the disease.
Proliferation of value-based healthcare services will be strongly related with its cloud-based deployment. As per FMI, the cloud-based deployment segment is expected to account for around 61% of global market and is anticipated to remain dominant throughout the forecast period.
Key Takeaways of Value-Based Healthcare Services Market Study
- FMI has predicted the global value-based healthcare services market to rise at a CAGR of ~21% between 2021 and 2031
- Backed by presence of highly advanced healthcare infrastructure, the U.S. is expected to account for 64% of sales in North America
- Rising aging population will enable the U.K. exhibit 24.4% y-o-y growth in 2021
- The demand for advanced healthcare services will boost growth opportunities in France and Germany
- Government initiatives aimed at improving patient care will fuel demand in China, Japan, and South Korea
“Aligning the incentives between payers and providers has proven beneficial to ensure best quality and cost-efficient outcomes. When correctly done in-home medical care, telehealth can help in medical loss ratio reduction, utilization reduction, risk adjustment factor increase and others. Such factors are boosting the adoption of value-based healthcare services,” says an FMI analyst.
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COVID-19 Pandemic Impact Analysis
Health concerns are increasing around the world and causing significant business impact due to the on-going COVID-19 pandemic —particularly when it comes to delivering healthcare services. Amid the COVID-19 outbreak, the demand for value based healthcare services has decreased in 2020. In response to the COVID-19 pandemic, cloud service providers are taking special measures to meet the customer demand for cloud usage, due to sudden shift to a remote-first workforce.
According to estimates, almost 70% CIOs agree “cloud services” would become a priority in 2020, and they expect to reduce on-premises workloads to 35% in 2021, as compared to almost 60% in 2019. With this trend to continue, pubic cloud services market revenue is estimated to increase by 1.6X during 2019-2021. Thus the value-based healthcare services market is anticipated to gain back its momentum by second half of 2021.
Assembled Deployment of Solutions to Enhance Market Attractiveness
Significant growth in the wearable devices market is expected to lead to greater opportunities for the integration of IoT in the healthcare sector to develop smarter solutions for patient monitoring and diagnostic purposes. The integration of other connectivity platforms such as Bluetooth, RFID, ZigBee, and HomeRF to connect IoT in healthcare to network infrastructure in households and workplaces.
This way, more IoT sensors in healthcare can be added to the system and remote access distance can be increased. A well-managed IoT services and solutions provider can focus holistically on a healthcare institution and deduce a suitable end-to-end approach. This approach can include device management, connectivity, network management, deployment, and logistics processes for the provider and present lucrative growth opportunities.
Who is winning?
Some of the leading players operating in the market are Deloitte, Siemens Healthcare GmbH, NextStep Solutions, McKesson Corporation, NextGen Healthcare, Genpact Limited, Athena Healthcare, Boston Consulting Group and others.
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More Valuable Insights on Value-Based Healthcare Services Market
In its latest report, Future Market Insights offers an unbiased analysis of the global value-based healthcare services market, providing historical data for period of 2016-2020 and forecast statistics for the period of 2021-2031. To understand opportunities in the value-based healthcare services market, the market is segmented on the basis of model (Accountable care organization (ACO), Patient-centered medical home (PCMH), Pay for performance (P4P), Bundled payments), deployment (cloud, on-premise), end-user (hospitals, clinics, insurance companies, government, others) across six major regions.
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Future Market Insights (ESOMAR certified market research organization and a member of Greater New York Chamber of Commerce) provides in-depth insights into governing factors elevating the demand in the market. It discloses opportunities that will favor the market growth in various segments on the basis of Source, Application, Sales Channel and End Use over the next 10-years.
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