Value-based healthcare

Value-based healthcare is a healthcare delivery model in which providers are paid based on patient health outcomes. Under value-based care agreements, providers are rewarded for helping patients improve their health, reduce the effects and incidence of chronic disease, and live healthier lives in an evidence-based way. Value-based care differs from a fee-for-service or capitated approach, in which providers are paid based on the amount of healthcare services they deliver. The “value” in value-based healthcare is derived from measuring health outcomes against the cost of delivering the outcomes and, thus, the primary focus is to improve outcomes that are delivered and then deliver superior outcomes at a reduced cost.