What Is Value Based Care, And Why Is The Healthcare Industry Suddenly So Interested In It?

Value-based care (VBC) is a healthcare delivery model emphasizing the quality and value of patient outcomes rather than the quantity of care provided, shifting incentives from fee-for-service (FFS), which pays providers per service rendered. Proponents argue VBC improves health by rewarding providers for positive patient outcomes, while critics see systemic challenges and time constraints for providers. Despite these hurdles, startups like CareBridge and Somatus are actively investing in VBC with initiatives in chronic disease management. Traditional payors, such as Aetna, are also adopting VBC, focusing on a team-oriented, holistic approach led by primary care doctors and multidisciplinary teams. The goal is to manage total health proactively, but significant infrastructure and buy-in across the healthcare industry are necessary for widespread adoption. Hybrid models combining the best aspects of both VBC and FFS might emerge as a compromise to effectively serve patients.