The global value-based health care services market is expected to be driven by existence of intense competition amongst market players and overwhelming pressure to lower cost.
The global value-based health care services market is expected to be driven by existence of intense competition amongst market players and overwhelming pressure to lower cost. Increasing demand to provide improved care is another factor that is likely to offer growth opportunities for the global value based health care services market in years to come. According to NEJM Catalyst, a weekly medical journal, nearly 40% of the respondents who were health care providers believe that value-based health care services would emerge as the main revenue model in the healthcare industry in the US. These factors are likely to fuel the growth of the global value-based health care services market over the assessment tenure.
It is a well-known fact that the cost of healthcare has burdened many, even drove many on the verge of and into actual bankruptcy. Particularly middle-class and low-middle class families find it too hard to bear the burden of treatment everywhere in the world. As the treatment costs continue to rise sharply with each passing year, increasing number of insurance companies are shifting toward value-based healthcare service model that fixes payment for the provider based on the result of the treatment. This new system of value-based treatment rewards healthcare providers, nurses, and physicians assist patients in reducing chronic illness and regaining health.
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Increased Pressure to Reduce the Cost of Treatment to add Fillip to the Market
Health care infrastructure has witnessed massive change since the implementation of Affordable Care Act in 2011.Value-based healthcare also go by another name, value-based care. It refers to a payment model that pays depending on the quality of the care provided to the patients. Based on this approach, healthcare providers look for offering improved care to the patients with lower cost.
On the other hand, absence of the high-speed and continuous internet connection coupled with required healthcare infrastructure is likely to impede growth of the global value-based health care services market in years to come.
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).
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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.
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