Why Has Value-based Care Grown in Popularity?

Traditional fee-for-service care has been the standard in the United States for years. However, medical providers have long sought alternative means of care delivery that could alleviate some of the burdens brought about by traditional care approaches. 

In 1967, the Patient-Centered Medical Home (PCMH) concept was introduced. A groundbreaking approach spearheaded by the American Academy of Pediatrics, PCMH put patients at the forefront of care. Research quickly emerged to suggest that a patient-centered, value-based system could improve outcomes and increase patient satisfaction, all the while reducing the overall costs of healthcare. 

Although PCMH was the first “value-based” care system, many similar models have emerged since. These models show that the prioritization of quality care and a patient-based approach could be superior to the fee-for-service model, which was quickly wearing out its welcome. 

Slow Movement Towards Change 

Despite the initial success of the first attempts at value-based care, practitioners were slow to move from the traditional fee-for-service system. Despite the inefficiency, broad patient disapproval, and cost of the fee-for-service model, it remained the dominant approach throughout the 1970s, 80s, 90s, and up into the mid-2000s. 

Medical providers seemed hesitant to change, even if they recognized the benefits of value-based care. Fears regarding decreased reimbursement due to fewer procedures being performed, increased reporting, paperwork, and complications of shifting models likely came into play.

In 2008, Medicare began to emphasize value-based care strongly, seeking to provide quality care to patients over quantity of care. This shift kicked off a domino effect within the healthcare industry, elevating the popularity and the adoption of value-based care systems across the board. 

Growing Popularity

The growing popularity of value-based care systems is easy to quantify. By 2018, 10 years after Medicare began its push towards a value-based system, 36% of payments were for value-based care. By 2021, that number had reached nearly 50%. While providers may be slow to adapt to change, the feedback from the medical community has been largely favorable. Providers have reported happier patients, reduced costs, better health outcomes, and an overall reduction in medical errors once the value-based model was in place. 

A value-based approach encourages a healthier society, which could account for some of its growing popularity, especially with patients. Focusing on preventative medicine — like smoking cessation programs or maintaining a healthy diet — can lead to a more affordable healthcare system for all stakeholders. Because the value-based system is mutually beneficial for both provider and patient, as well as society as a whole, its popularity has gained steam as its benefits become apparent. 

An Ideal Value-Based Structure 

According to the American Medical Association, value-based care has several components that work together to bring about the best outcomes for the patient and the physician. These components include: 

• A patient-centered approach with a medical team that has a shared vision.
• Healthcare workers who approach care with professionalism and leadership. 
• A functional and robust IT system.
• Payment models that reward quality over quantity.
• Wide-spread care access.

The value-based model not only highlights patient-centeredness, but leaves room for technological advancements and improvements in care team rapport. Trust is built when patients don’t feel like their doctor is tacking on procedure after procedure or test after test. When there is trust on the part of the patient, and competency on the doctor's part, health outcomes are bound to improve immensely. 

Value-based care is not only here to stay, but all signs point to it continuing to grow in popularity as an increasing number of providers jump on board. As the medical community seeks to improve the health of Americans overall, the shift toward a value-based care majority is likely in the near future.