Value-based care has evolved into a healthcare landscape of its own, with a wide range of organizations contributing to systematic changes that improve quality of care and outcomes while better controlling costs, McKinsey & Company writes.
Providers specializing in value-based care have become attractive to investors because of the distinctive quality of care that they can provide and the investable opportunity they present, with a diversity of risk levels and business models. By building on a decade of increasing value-based payment adoption—combined with enhanced value-based capabilities across payers, providers, employers, and other healthcare stakeholders—continued traction in the value-based care market could lead to a valuation of $1 trillion in enterprise value for payers, providers, and investors.
Stakeholders in the healthcare community define value-based care differently. The Health Care Payment Learning and Action Network (LAN) includes performance, reporting, and even infrastructure in its first step of value-based care, while others note that these models fall short of delivering value (in quality or affordability) because they don’t remedy the problems of fee-for-service healthcare. Read more.
