Accountable Care Solutions Market, By Product Type (Healthcare Payer Solutions, Healthcare Provider Solutions, Services), By Delivery Mode (Cloud Based and On-premises), By End User (Payer and Provider), By Geography (North America, Europe, Asia Pacific, Latin America, Middle East and Africa)

Published In : Apr 2024

Code : CMI6913

Pages :174

Formats :

Excel and PDF

Industry : Smart Technologies

Market Concentration and Competitive Landscape

Accountable Care Solutions Market Concentration By Players

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Rising Healthcare Costs

One of the drivers for the growth of the accountable care solutions market is rising costs of healthcare across the world. Healthcare spending has been increasing at a rate much higher than general inflation in most countries for various reasons. Aging population coupled with people living longer has increased the burden of chronic diseases on healthcare systems. Advancement in medical technology has improved treatment options but also increased costs. Major diseases like cancer, heart disease and diabetes require prolonged and expensive treatment over months or years.

Governments and private insurers are finding it increasingly difficult to manage such rising costs through the traditional fee-for-service model. This model has an inherent risk of over-treatment and unnecessary tests being conducted for financial incentives of providers. There is a need for lower costs and improved health outcomes simultaneously. Accountable care solutions are emerging as an attractive option to address this challenge. By implementing value-based models that reward providers for quality and efficiency instead of volume of services, the per capita costs can be controlled. This helps in managing budgets while still providing best in class treatment to patients. Various countries have started accountable care programs and seen early promise in bending the healthcare cost curve through coordinated care models.

Shift Towards Value-Based Care

Another major driver for the growth of accountable care solutions has been the shift from traditional fee-for-service payment models to value-based care models. Traditionally, healthcare providers were reimbursed based on volume of services delivered rather than health outcomes achieved. This resulted in lack of coordination between different providers and accountability for overall patient health. With rising affordability challenges, policymakers and payers are now moving towards models that focus on keeping populations healthy instead of sick. Value-based models align incentives of providers with quality goals through mechanisms like bundled payments, shared savings programs and global payments.

Early programs of accountable care organizations, bundled payments for episodes of care, medical homes and other such models have demonstrated cost savings as well as improved quality benchmarks across different geographies. Providers also view population health management as a chance to embrace greater risks and rewards. This encourages them to put more resources into preventive care and work closely with other parties to improve people's health results. International healthcare leaders are working towards large scale adoption of such value-based payment systems combined with care delivery transformation. Accountable care solutions powered by digital and analytics tools are crucial enablers for the shift towards outcomes-focused and coordinated healthcare.

Key Players Insights