There is a new trend towards value-based healthcare, in which healthcare practitioners are compensated based on patient outcomes rather than the number of patients treated. Traditionally, healthcare practitioners are paid on a fee-for-service basis in which the volume of patients seen can increase the amounts they receive. However, many want to move away from this standard to a value-based approach.

Value-based models link healthcare payments with improvements in patient care. Additionally, it can help to cut back on the amount of care given, which in turn can reduce costs, while also holding healthcare practitioners accountable for treatment and services rendered.

This is a trend that is anticipated to gain momentum as various health insurers shift much of their reimbursements to value-based models. As such, a higher portion of reimbursement to physicians will be provided through bundled payments, pay-for-performance deals, and accountable care organizations (ACOs).

Overall, patient health and wellness following medical care play an important role in compensation with value-based healthcare.

Pros and Cons of Value-Based Healthcare

Value-based healthcare has a handful of advantages and disadvantages to consider, including the following.


Better patient outcomes. A clear advantage for patients is that they may come to expect treatment protocols that are specifically designed for improved health and wellness. While that is already the goal of healthcare practitioners, a value-based model may provide more incentive to ensure that their patients have a positive experience following medical care, which in turn will translate to higher payouts from health insurers.

Reduced costs. The medical industry can realize cost savings with a value-based model in place. Healthcare providers can more closely assess treatment plans and understand where the money is being allocated. With a better understanding of appropriate care and treatment, healthcare practitioners can tweak their services appropriately so better value is given to their patients.

Physicians can also monitor their patients on a regular basis to gain a clearer understanding of how certain changes may improve patient outcomes and handle current healthcare issues more effectively.

Healthcare practitioners can be held more accountable. With a value-based model in place, healthcare practitioners can be held more accountable for both quality of care and cost. With improved healthcare, the prevalence of litigation can be reduced while also cutting down on deductibles and any discrepancies in charges.

man on couch meeting with doctor
Patients are becoming more proactive in their approach to choosing how and where to obtain medical care.


Lots of data accumulation is required. Moving to a value-based care plan can require a lot of data to be gathered and manipulated. With so many metrics at play and various ways to manipulate data, it can be difficult to determine whether or not these standards are being adequately met.

Complicated cases can pose challenges. A more complex medical situation can prove difficult, which can place physicians at greater risk, particularly when it comes to hospital and home health value-based purchasing.

Patients can be misled in terms of lower-cost care. Value-based care can put patients at risk of being directed to healthcare practitioners who might not be charging the lowest prices.

Health Sharing Ministries Save Americans Money in Health Care

One of the main goals of value-based care is to help reduce healthcare costs. Another way Americans can take steps to cut costs for medical care is through membership with a health sharing ministry.

These programs have become increasingly popular among Americans looking for more freedom, flexibility, and cost-savings for their health care. In fact, over 2 million Americans are currently enrolled in a health sharing program, saving as much as 30% to 40% for health care compared to conventional health insurance plans.

Why not find out for yourself how much your family can save with a health sharing program right now? Health sharing saves money.