An elderly man laughs with his healthcare provider

You’ve probably heard a lot of value-based care, but what is it exactly?

Value-based care (VBC) is a healthcare delivery model that prioritizes improving patient care and outcomes, through cost-efficiency and provider performance. Let’s go back to the basics so you can more richly understand exactly what it is.

Learn more about VBC terminology

Strategic advantages of VBC

VBC reimburses providers based on how well they improve patient health, which encourages providers to focus on care quality, patient satisfaction and overall performance. The fee-for-service reimbursement structure incentivizes costly and often unnecessary procedures—focusing on "sick care" rather than health maintenance, leading to misaligned incentives.  

Types of value-vased care models

Bundles

Healthcare providers charge a fixed fee, regardless of how many providers treat the patients.

Shared savings

Providers are reimbursed using a fee-for-service model, but payment is based on quality and cost targets. 

Shared risk

Often referred to as the downside-risk model because the provider is accountable to the Accountable Care Organization (ACO), this model allows providers to share savings.

Global capitation

Providers assume 100% of the risk and are paid a set amount per patient. Providers can keep any savings remaining, but they must also take on all losses.

85% of value-based care patients vs only 75% of non-value-based care patients saw their PCP at least once in 2023.
Regular appointments mean better prevention and healthcare maintenance.

Your VBC journey starts here

For administrators

See our 7 steps for success for overcoming challenges of data management systems, organizational culture and more.

Explore VBC for positive change

For providers/clinicians

Learn how implementing VBC into your practice can reduce burnout and improve job satisfaction for providers.           

Discover the benefits of VBC

For policy makers

Promoting value-based care within your community helps drive better population health and reduced healthcare costs.

Learn about healthier communities

Take the next step toward value-based care