Value-based healthcare is a delivery model in which providers are compensated based on patient health outcomes. Under value-based care agreements, providers (including hospitals and physicians) are recognized for helping patients improve their health, reduce the ramifications and incidence of chronic disease, and live a healthier lifestyle in an evidence-based process.
Value-based care is different from a traditional fee-for-service (FFS) approach. FFS 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.