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Value-based care has been cited as a way to reduce healthcare costs and improve outcomes. However, adoption has been slower in rural communities, with rural providers facing several uphill challenges, according to one health company executive.
“Providers I’d say have been a bit more resistant in rural areas to take on risk, to take on value-based care. And it’s understandable. Many of them are struggling to stay afloat, stay viable,” said Amar Kendale, co-founder and president of Homeward Health, during a recent interview at CES 2024. “So they’re really optimizing what they know well, which is fee-for-service, in order to do that. There also aren’t the same kind of market pressures that you have in urban or suburban areas where the health plans can be a bit more assertive in terms of pushing their networks towards value.”