Value Based Healthcare Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Model (Accountable Care Organization, Patient-Centered Medical Home, Pay for Performance, Bundled Payments), By Deployment (Cloud, On-premises), By End User (Hospitals, Clinics, Insurance Companies, Government, Others), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 1.89 Trillion
CAGR (2026-2031)	7.64%
Fastest Growing Segment	Cloud
Largest Market	North America
Market Size (2031)	USD 2.94 Trillion

Market Overview

The Global Value Based Healthcare Market will grow from USD 1.89 Trillion in 2025 to USD 2.94 Trillion by 2031 at a 7.64% CAGR. Value-based healthcare is a delivery model in which providers receive compensation based on patient health outcomes and the quality of care delivered rather than the volume of services rendered. The primary drivers propelling this market include the urgent necessity to curtail escalating healthcare expenditures and the rising prevalence of chronic diseases that require coordinated management. These factors necessitate a structural shift toward financial efficiency and improved patient results that is distinct from temporary technological trends. According to the National Association of ACOs, in 2025, 64% of healthcare organizations expected higher revenue from value-based care arrangements compared to the previous year.

One significant challenge hindering broader market expansion is the substantial financial risk associated with the transition from traditional reimbursement models. Providers often encounter difficulties in managing the potential downside liabilities inherent in value-based contracts because they lack the necessary capital reserves or advanced data infrastructure. This financial exposure creates hesitation among smaller organizations to abandon guaranteed fee-for-service revenue streams and consequently decelerates the widespread adoption of accountable care frameworks across the global market.

Key Market Drivers

Government initiatives and legislative mandates promoting value-based models serve as the foremost catalyst for market expansion. Federal bodies are aggressively steering the industry away from volume-based care by implementing programs that penalize poor performance and reward cost efficiency. These regulatory frameworks reduce the burden of escalating national health expenditures while forcing healthcare institutions to adopt accountable care structures. The continued success of these mandates provides a compelling business case for participation; according to the Centers for Medicare & Medicaid Services, September 2025, in the 'Medicare Shared Savings Program' performance results, the program generated $2.4 billion in net savings for the government during the 2024 performance year, reinforcing the financial viability of state-led interventions.

The strategic alignment of payer and provider incentives for better health outcomes is effectively accelerating the transition from fee-for-service to pay-for-performance reimbursement. Payers are increasingly structuring contracts that offer substantial upside potential to providers who can demonstrate superior clinical results and population health management. This financial synchronization encourages physicians to prioritize preventive care and chronic disease management over episodic treatment. According to Humana Inc., February 2025, in the 'Value-Based Care Report', providers in value-based Medicare Advantage arrangements earned up to 241% above the standard Medicare fee schedule, highlighting the lucrative nature of these aligned incentives. Furthermore, this structural pivot is gaining momentum market-wide; according to Optum, in 2025, approximately 14% of United States healthcare payments were tied to capitated risk models, representing a twofold increase since 2021.

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Key Market Challenges

The substantial financial risk associated with transitioning from traditional reimbursement models to value-based care stands as a critical impediment to the expansion of the Global Value Based Healthcare Market. Under value-based agreements, providers must often assume downside liability, meaning they are financially responsible if the cost of care exceeds established benchmarks. This model requires significant upfront capital reserves to absorb potential losses and necessitates expensive infrastructure to track patient outcomes accurately. For many healthcare organizations, particularly smaller independent practices and rural hospitals, the possibility of owing money back to payers creates an untenable hazard that outweighs the potential for shared savings.

This aversion to financial exposure directly slows the market's growth momentum by discouraging widespread participation in accountable care frameworks. When providers remain tethered to fee-for-service models to ensure predictable revenue, the scalable adoption of value-based contracts stalls globally. The impact of this barrier is evident in recent industry findings. According to the National Association of ACOs, in 2025, 87% of healthcare organizations cited financial risk as the primary barrier preventing the adoption of value-based care arrangements. Such high levels of apprehension indicate that until financial liabilities are better mitigated, the market will struggle to achieve its projected growth rates.

Key Market Trends

The Integration of AI-Driven Predictive Analytics for Risk Stratification is fundamentally reshaping how providers manage population health by enabling the early identification of high-risk patients before costly complications arise. Unlike basic data aggregation, these advanced algorithms analyze historical claims and clinical patterns to forecast adverse events such as hospital readmissions or chronic disease progression, allowing care teams to intervene proactively. This technological capability is becoming a standard operational requirement for maximizing shared savings; according to the Office of the National Coordinator for Health Information Technology, September 2025, in the 'Hospital Trends in the Use, Evaluation, and Governance of Predictive AI' report, 71% of hospitals reported using predictive AI integrated into their electronic health records in 2024 to enhance clinical decision-making.

Simultaneously, the Incorporation of Social Determinants of Health into Reimbursement Frameworks represents a critical evolution in value assessment, acknowledging that non-medical factors like housing stability and food security drive the majority of clinical outcomes. Payers are progressively adjusting contract terms to reimburse for social interventions, moving beyond traditional fee-for-service codes to reward comprehensive patient support that reduces long-term utilization. Despite this strategic pivot, the accurate capture of social risk data remains a significant growth area; according to Net Health, April 2025, in the 'Using ICD-10 Z Codes to Identify Social Determinants of Health' report, only 1.9% of inpatient hospital admissions documented SDOH Z codes, highlighting the immense opportunity for organizations to improve revenue capture by formalizing these critical data elements.

Segmental Insights

The cloud deployment segment represents the fastest-growing category within the global value-based healthcare market, driven by the necessity for scalable data integration and real-time analytics. As the industry shifts from fee-for-service to outcome-based models, stakeholders require robust platforms to aggregate disparate patient data across the continuum of care. This demand is further amplified by mandates from regulatory bodies such as the Centers for Medicare & Medicaid Services, which emphasize interoperability and transparent data exchange. Consequently, cloud infrastructure is essential for providers to efficiently track performance metrics and manage population health risks while maintaining operational cost-effectiveness.

Regional Insights

North America holds a dominant position in the Global Value Based Healthcare Market, largely due to the systemic shift from fee-for-service to outcome-based payment models. The Centers for Medicare & Medicaid Services plays a central role in this transition by implementing programs that penalize poor performance and reward high-quality patient care. Additionally, the widespread implementation of health information technology facilitates the data collection necessary to measure clinical efficiency. These regulatory pressures and infrastructure capabilities establish North America as the primary hub for value-based care adoption.

Recent Developments

• In November 2024, Emory Healthcare entered into a strategic partnership with Guidehealth, a value-based care enablement company, to scale its primary care services across Georgia. The collaboration involves deploying AI-enabled "healthguides" and predictive analytics to support more than 350,000 patients within the health system’s clinically integrated network. This initiative aims to alleviate administrative burdens on providers while improving clinical outcomes and closing care gaps for patients with complex needs. By leveraging these advanced technologies, the organization seeks to enhance the delivery of value-based care while ensuring the financial sustainability of its participating practices.
• In November 2024, the Health Assurance Transformation Corporation (HATCo), a subsidiary of the venture capital firm General Catalyst, signed a definitive agreement to acquire Summa Health for $485 million. This transaction is designed to transition the health system into a for-profit entity focused on advancing value-based care models. As part of the agreement, the acquiring firm committed to investing $350 million in capital funding for routine improvements and an additional $200 million for strategic innovation over the initial years. The acquisition aims to stabilize the organization’s operations and implement a proactive, technology-driven approach to community healthcare delivery.
• In October 2024, Oracle Health unveiled its next-generation electronic health record (EHR) platform, which integrates advanced artificial intelligence to accelerate the adoption of value-based care. The newly launched system is designed to automate clinical workflows, provide real-time patient insights at the point of care, and streamline information exchange between payers and providers. By consolidating data from clinical, claims, and social determinants sources, the platform enables healthcare organizations to identify care gaps and improve performance in risk-based contracts. This development reflects the company's strategy to reduce administrative costs and enhance the quality of patient outcomes through improved data intelligence.
• In August 2024, CVS Health launched a new store format that integrates Oak Street Health primary care centers directly alongside its pharmacy locations. The initiative, which began with openings in the Chicago market, is part of a broader expansion strategy to deliver accessible value-based care to seniors with chronic conditions. This co-located model facilitates enhanced collaboration between pharmacists and primary care providers, allowing for better medication management and coordinated patient support. By combining these assets, the company aims to lower the total cost of care while providing a more personalized and integrated healthcare experience for Medicare-eligible patients.

Key Market Players

• UnitedHealth Group
• Kaiser Permanente
• Aetna Inc.
• Optum
• Cleveland Clinic
• Mayo Clinic
• Cigna
• Humana
• BCBS
• DaVita

By Model	By Deployment	By End User	By Region
Accountable Care Organization Patient-Centered Medical Home Pay for Performance Bundled Payments	Cloud On-premises	Hospitals Clinics Insurance Companies Government Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Value Based Healthcare Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Value Based Healthcare Market, By Model:

• Accountable Care Organization
• Patient-Centered Medical Home
• Pay for Performance
• Bundled Payments

• Value Based Healthcare Market, By Deployment:

• Cloud
• On-premises

• Value Based Healthcare Market, By End User:

• Hospitals
• Clinics
• Insurance Companies
• Government
• Others

• Value Based Healthcare Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE