Value-based purchasing in healthcare

As healthcare moves to a more patient-centric and value-driven delivery model, a shift toward value-based purchasing in healthcare emerges. Because "value" in value-based healthcare, or VBHC, is defined as improving patient outcomes throughout the entire healthcare journey, it stands in stark contrast to the traditional fee-for-service healthcare delivery model. Every value-based model's central tenet is the switch from treating illnesses to addressing patients' needs; as a result, funding for health services are based on successful patient outcomes rather than on the volume of procedures carried out. To accomplish these objectives, the entire healthcare delivery system must change, including a move towards value-based purchasing. This involves how medical equipment, services, and treatments are bought. 70% of all medical technology, according to MedTech Europe, are obtained through procurement, which is the "formal process (tender) by which public entities. Value-based care has already become a major focus in healthcare, and it is expected to continue to be a priority in the coming years. The traditional fee-for-service model is gradually being replaced by value-based care models that prioritize quality of care over quantity of services provided. Value-based care aims to improve patient outcomes while reducing costs by incentivizing healthcare providers to deliver high-quality, coordinated care that focuses on prevention and wellness. This approach aligns incentives between payers, providers, and patients, and has the potential to improve patient outcomes and reduce costs across the healthcare system. While there are still challenges to implementing and scaling value-based care, it is likely to remain an important priority for healthcare organizations and policymakers in the years to come.