When it comes to risk-based payment, success depends on a modern strategy for meeting patients’ whole-health needs and the analytical and operational support to drive performance.
Investment in value-based care quadrupled during the pandemic, and continued growth is expected across all lines of business. In Medicare Advantage alone, where the penetration rate climbed to 51% in 2023, compared with 42% in 2020 and 32% in 2015, value-based care arrangements dominate contracts between payers and providers. By conservative estimates, Medicare Advantage is projected to overtake traditional Medicare by 2030.
Yet even as the appetite for value-based payment grows among physicians and health plans, hospitals and health systems — and especially those highly reliant on fee-for-service reimbursement — risk being left behind in the climb to value.
