Value Based Healthcare - Overview, Benefits, Future Prospects and More

What are the Future Prospects of Value Based Healthcare? A detailed overview along with its key benefits

The value based healthcare model is built on a triple aim, which includes better care for individuals, better population health, and lower healthcare costs. Clinicians undertaking the system of value-based care in healthcare are provided with incentives to promote the percentage of healthy patient outcomes.

This move has ensured that patients can lead healthier lives after recovering from the disease and has reduced the burden of chronic diseases. This system also promotes the use of evidence-based medicine amongst clinicians.

Find out more about value-based healthcare and its various aspects in this blog!

What is Value Based Care?

Value based healthcare is a system where hospitals and doctors get paid based on how well the patients are doing after receiving treatment. The term "value" in value-based care is a measurement of the health outcome as compared to the cost of the outcome.

What are the Benefits of Value-Based Healthcare?

The advantages of value based care in healthcare are not only limited to patients, but also serve the healthcare providers, health insurance providers, medical suppliers and society as well. Some of them have been listed below:

1. For Patients

Recovering from chronic conditions like chronic obstructive pulmonary disease (COPD), diabetes, cancer, high blood pressure, etc., requires long-term management, which can be expensive. Value-based healthcare focuses on faster recovery and prevention of such conditions in the future, leading to patients spending less on healthcare costs.

2. For Healthcare Providers

Healthcare providers will have to focus more on preventive care under the value-based healthcare model. However, this will make managing chronic conditions less time-consuming, and the overall patient satisfaction and quality of services would improve significantly.

Moreover, the providers following a value-based care system would be incentivized in the long run.

3. For Health Insurance Providers

As the value-based healthcare model aims at improving patient outcomes, it reduces the overall risk of diseases in a population. Thus, health insurance providers will have to pay less for claims, which enhances their efficiency in providing coverage for patients with chronic conditions. 

4. For Medical Suppliers

In the value based healthcare model, medical suppliers will be influenced to tie the prices of drugs and other pharmaceutical products to their actual value to patients. This will help reduce overall costs, which is especially necessary given the rising medical costs.

5. For Society

Managing chronic conditions and accessing quality health care would become more affordable. Value-based healthcare promises to significantly reduce the overall costs of healthcare.

Fee-For-Service Model or Value-Based Healthcare Model: Which is Better?

To date, the Fee-For-Service (FFS) model of healthcare is being used. The value-based healthcare system differs greatly from the FFS model, under which the healthcare providers are compensated depending on the amount or volume of services delivered. These services include:

• Doctor’s office visits
• Tests
• Procedures
• Other Treatments
   

In the FFS model, clinicians are paid for each service separately. Meanwhile, the value based healthcare model is more focused on providing quality services rather than increasing the number of services provided.

What Does the Future of Value-Based Healthcare Look Like?

The traditional FFS model of healthcare has been in place for several decades now. Transitioning to a newer model will surely take time, and one of the major challenges for the value-based care model is that providers are expected to face a transient financial hit before the costs in the longer term decline.

However, it has been established that shifting from fee-for-service to fee-for-value is the most effective method of lowering healthcare expenses and providing patients with quality care services.

Nonetheless, having health insurance still remains crucial to deal with the financial strain associated with chronic disease management and medical emergencies. Trust in reputed providers like Star Health to enjoy comprehensive coverage, cashless treatment in 14,000+ network hospitals, telemedicine services and more.

Call us today and safeguard your health and finances!