The transition to value-based care (VBC) has begun to shape the face of the U.S. healthcare market and will do so increasingly in the coming years. Rising medical costs, regulatory pressures, and consumer demand for superior care have pushed providers to change the way they deliver and charge for medical services. While value-based care is at times narrowly defined as the transition from fee-for-service to bundled payments, we view VBC as a broader set of services, initiatives, and capabilities focused on shifting the quality/cost dynamic in healthcare. As such, VBC includes such services as population health management, evidence-based care, and quality measurement. The VBC transition represents a sea change for the market, and industry participants would do well to understand the near- and long-term implications of this trend.
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