Healthcare leaders project revenue gains from value-based care despite persistent hurdles

Editor's Note

Nearly two-thirds of healthcare organizations expect increased revenue from value-based care (VBC) arrangements in 2024, signaling growing confidence in the model despite concerns over financial risk and infrastructure gaps, according to a May 19 report in Healthcare Finance. The findings are based on a nationwide survey of 168 leaders across 142 healthcare organizations conducted by Innovaccer and the National Association of Accountable Care Organizations (NAACOS).

As detailed in the article, 64% of respondents anticipate higher revenue from VBC contracts compared to the previous year. This uptick comes as more systems tie a larger share of income to capitation and downside risk agreements. About 30% of organizations said at least a quarter of their revenue now stems from VBC contracts, and more than 20% reported that half or more of their revenue is tied to fully capitated or risk-based models.

However, the shift remains challenging. The survey revealed that 87% of respondents see financial risk as the biggest obstacle to adoption. Other barriers include provider readiness (80%), lack of interoperability (75%), and high technology costs (67%). Despite these concerns, 74% of leaders said increased financial support and incentives would significantly speed VBC adoption, and 70% are optimistic about AI’s role in advancing predictive analytics and scaling VBC programs.

The article quotes Innovaccer CEO Abhinav Shashank, who argues that successful VBC transformation requires more than intent—it demands investment in data infrastructure, interoperable technology, and strategic partnerships. NAACOS President Emily D. Brower added that population health management hinges on integrated data use that can illuminate both community- and individual-level needs.

The full report also contextualizes the trend with broader data. For example, a 2022 report from the Medical Group Management Association found VBC revenue remains limited across many specialties—averaging just 6.74% in primary care, 5.54% in surgical specialties, and 14.74% in nonsurgical fields. However, a JAMA Network study in 2023  found that Medicare Advantage VBC models were linked to improved outcomes and reduced emergency department visits and readmissions.