Value-Based Care Trends in 2024 and Beyond - Vim

Value-Based Care Trends in 2024

As healthcare paradigms continue to evolve, value-based care (VBC) stands out as a transformative approach aimed at enhancing patient outcomes while controlling costs. At its core, VBC reimagines healthcare delivery by incentivizing providers to prioritize the value and effectiveness of care over the quantity of services deployed. 

In this blog post, we explore the value-based care trends shaping healthcare. From changing regulations to technological innovations, the industry is set for significant transformation by embracing value-based care.

What is Value-based Care?

VBC is a method of delivering healthcare to patients while incentivizing the provider to maximize the value of that care. Unlike traditional fee-for-service (FFS) models, where providers are paid based on the number of services they deliver, value-based care focuses on the quality and effectiveness of the care provided.

Providers engaged in VBC agreements are incentivized using a variety of different methods, including:

  • Bundled payments – providers receive a fixed payment for all services related to a particular patient, incentivizing them to deliver care efficiently and effectively to avoid unnecessary costs
  • Shared savings contracts – providers share in the cost savings they generate by delivering high-quality, cost-effective care.
  • Accountable Care Organizations (ACOs) – ACOs are groups of providers who collaborate to improve the quality of care to specific patient populations and are financially rewarded for meeting quality and cost targets for their patients 

Overall, value-based care benefits both patients and providers by improving the overall health of patient populations, enhancing the patient experience, and reducing healthcare costs while providing financial incentives to providers.

What is the Value-based Health Care Trend?

Traditional healthcare models are structured so that providers are reimbursed based on the number of services they provide. In these FFS models, every action taken and service rendered at a healthcare provider’s office is billed (e.g., consultations, tests, vaccinations, procedures, hospitalizations, etc.). In this model, the quantity of patient engagements is financially incentivized over the quality of patient care. 

However, due to the US’s historically high costs and poor healthcare outcomes, there has been an increased focus on improving patient outcomes, including the transition towards value-based care solutions.

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What is the Growth Rate of Value-based Care?

Value-based care is projected to grow significantly in the coming years. This growth is fueled partly by ambitious goals set by organizations like the Center for Medicare and Medicaid Innovation (CMMI). For example, the CMMI is aiming to shift 100% of Medicare beneficiaries into an accountable care relationship by 2030.

Initiatives such as this offer a clear path toward value-based care adoption. McKinsey research from 2022 suggests that the number of patients treated within the value-based care landscape could double by 2028, with an estimated annual growth rate of approximately 15%. 

As more and more providers embrace VBC models, they encounter value-based care elements they must manage and incorporate into their operations, such as contracting, reporting, reimbursement, and VBC-specific data.

This data can complicate the administrative process if not embedded into provider workflows efficiently. Technology solutions like Vim help to alleviate the burden on providers by making valuable patient data readily available in the existing EHRs directly at the point of care. 

Value-Based Care Trends to Watch in 2024

1. The shift away from FFS models expedites

In 2022, nearly 70% of Medicare Advantage enrollees opted for VBC providers, exemplifying the growing patient interest in such models. VBC will continue to gain traction as healthcare organizations seek to improve care quality, reduce costs, and enhance patient outcomes.

2. Long-term VBC strategies will prove beneficial

As VBC continues to prove itself as a legitimate method for providing cost-effective, valuable patient care, it will become increasingly imperative for providers to embrace a larger VBC strategy built to last.

3. Regulatory and policy changes will impact the industry

Regulatory and policy changes will continue evolving at the federal and state levels, impacting value-based care initiatives. The White House’s new Social Determinants of Health (SDoH) strategic playbook is one example of current government policy evolving beyond traditional care methods.

4. Leveraging data and technology advancements will create more efficiency in care

VBC agreements involve a more complex system of checks and balances than FFS models because they require frequent data analysis and reporting to be shared across stakeholders to ensure care standards are being met. Therefore, leveraging sophisticated technology can enable providers and lessen the administrative load of engaging in VBC. 

5. Traditional healthcare processes will continue to be reimagined

As the healthcare industry continues to evolve, there will be a push for more innovative partnerships between healthcare stakeholders to improve value and transparency. Some examples of this are value-based employer purchasing and telehealth.

Conclusion

In conclusion, the landscape of healthcare delivery is undergoing a profound transformation driven by the principles of value-based care. With a focus on quality, effectiveness, and patient-centeredness, VBC is poised to revolutionize how healthcare is delivered and experienced.

As we look ahead to 2024 and beyond, it’s evident that the momentum behind value-based care will only continue to grow. Embracing the principles of value-based care, healthcare stakeholders have the opportunity to drive positive change and improve the overall health and well-being of patient populations.

At Vim, we understand the complexities of the transition to value-based care from a fee-for-service model. As such, Vim has developed solutions specifically designed to support providers in operationalizing value-based care initiatives.

Our solutions are built on a deep understanding of the value-based care ecosystem gained through extensive experience working with providers across various settings. We recognize that providers are at the forefront of delivering patient care, making them critical drivers of value-based care programs’ success.

Madison Duffy

Madi is a digital marketer with a background in marketing operations, content creation, and graphic design. With experience at organizations spanning from small non-profits to larger SaaS companies, she brings a variety of perspectives to her work with an overarching goal of driving positive change through impactful and innovative solutions. Currently, she is the Marketing Associate at Vim where she develops content and executes campaigns that showcase Vim’s EHR integration software and its impact on provider workflows and the quality of patient care.

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