In an attempt to curb rising costs, the U.S. medical system is moving away from traditional fee-for-service healthcare. Traditional fee-for-service and volume-based healthcare models pay providers for the amount of healthcare services they provide, not the quality of that care. Value-based care is the new model: a system in which providers are paid for performance and patient outcomes.
Value-based care benefits every healthcare stakeholder:
- Patients benefit from improved outcomes at lower costs
- Providers benefit from better care efficiencies and, therefore, higher rates of patient satisfaction
- Payers benefit from stronger cost controls, plus risk is spread across a larger patient population
- Suppliers benefit from prices aligned with patient outcomes
- Society benefits from a reduction in overall healthcare spending plus improved overall health
These benefits have led to increased focus on value-based solutions in life sciences.