Healthcare DIVE May 19, 2025
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Healthcare is undergoing a major shift. Rising costs, a growing number of chronic disease cases and an aging population have revealed the limitations of the traditional fee-for-service (FFS) model. Under FFS, providers are paid based on the volume of services rendered—regardless of the outcomes. This has led to inefficiencies, fragmented care and increasing financial pressure on both patients and payers.
In contrast, value-based care (VBC) models prioritize outcomes over output. Instead of rewarding the number of procedures, VBC encourages preventive care, improved patient outcomes and coordinated treatment plans. This approach is gaining traction across the healthcare ecosystem as a more sustainable and effective way to deliver care.
The payer’s crucial role in advancing value-based care
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