Value-based healthcare represents a system where those who provide care get remunerated with reference to the results in the patient, the quality, and the cost, rather than to the quantity of the services. Its main objectives are to improve care coordination, patient experience, and treatment standardization and, at the same time, to decrease unwanted expenses and inefficiencies. The major factors behind its implementation are the increasing healthcare costs and the ever-growing demands of patients. Besides that, its implementation is facilitated by public financing, the use of technology, and policy measures that support the interaction of different sectors in the healthcare ecosystem.
Key Growth Drivers and Opportunities
Rising Healthcare Expenditure: The escalating healthcare costs are the reason why value-based healthcare market is getting bigger. By this the market grows up over and over. With the spending getting higher, healthcare providers as well as governments are looking for models that connect payments to quality outcomes and cost-effectiveness. This, in turn, is fostering the usage of value-based systems that not only save money but also improve patient outcomes and guarantee the rational use of resources.
Challenges
The value-based healthcare (VBHC) seeks to overcome limitations as difficulties in the implementation, absence of standardized outcome measurements, problems with data interoperability, and resistance to change of providers. Furthermore, insufficient infrastructure, low level of awareness, and difficulties in getting incentives alignment among stakeholders also act as barriers to its diffusion and performance.
Innovation and Expansion
India’s First AI and Value-Based Pricing Partnership for Cancer Care Launched in Goa
In August 2025, to lower the cost of life-saving medicines, Goa has started a ground-breaking healthcare initiative that combines artificial intelligence (AI) screening with a cutting-edge drug pricing mechanism. The first framework of its kind in India, the Pricing Policy for Innovative Lifesaving Therapies (PPILT), was adopted by the state and gives the government the authority to negotiate outcome-linked, confidential prices for expensive medications, gadgets, and diagnostics.
With the help of Qure.ai and AstraZeneca, this project seeks to lower the cost and increase the accessibility of necessary medications and medical resources for all patients. The initiative, which initially targeted lung cancer, will assist Goa in obtaining patented treatments at significantly lower costs than the market. As a result, more patients can receive care within the same budget, and those who require longer-term care can do so without incurring additional costs.
IHH Healthcare will expedite the Transition to Value-Based Care
In May 2025, According to IHH Healthcare, it would step up its efforts to switch from the conventional fee-for-service approach to a value-based care model. Through its “Value-Driven Outcomes” initiative, which monitors more than 360 quality indicators across eight high-volume operations, the group is making use of this.
The goal of the action is to optimize resources and cut down on needless healthcare expenses while upholding high standards of treatment. In the meantime, the company held its 15th Annual General Meeting for the fiscal year that concluded on December 31, 2024, and all ten of the ordinary motions that were presented were approved by the shareholders and their proxies.
Inventive Sparks, Expanding Markets
The key players operating in target market includes Genpact Limited, Athena Healthcare, NextGen Healthcare, Siemens Healthcare, Allscripts Healthcare LLC, and among others. Companies have increased their overall production of critical care equipment due to the sudden COVID-19 outbreak in order to fulfill the increased demand for this equipment globally.
About Author:
Prophecy is a specialized market research, analytics, marketing and business strategy, and solutions company that offer strategic and tactical support to clients for making well-informed business decisions and to identify and achieve high value opportunities in the target business area. Also, we help our client to address business challenges and provide best possible solutions to overcome them and transform their business.
