• Health Tech

Is Value-Driven Care Getting a Booster from Large Corporations?

February 14, 2023

On December 2nd, The Wall Street Journal reported that Amazon, CVS, and Walgreens had committed millions of dollars to primary care practices to transition the U.S. healthcare system into a value-based structure.

In recent months, healthcare disruptors have been making major headlines due to their revolutionary deals — One Medical, Signify Health, and Summit Health. These agreements are revolutionizing the $4 trillion global healthcare market!

The healthcare market traditionally relies on a fee-for-service approach. However, recent deals are emphasizing the importance of value-based care. This model incentivizes patients to maintain their health by providing rewards instead of compensating medical professionals for each service rendered as in a fee-for-service system. 

Criticisms aimed at the fee-for-service model have it that healthcare providers recommend additional services to get paid. Walgreens, Amazon, and CVS are embracing a progressive approach of value-based care to prioritize patient wellness while reducing time spent by patients in hospitals – effectively shifting the paradigm away from incentivizing more treatments for payment.

Healthcare experts have ongoing reservations about the value-based care model, including that patients may be denied timely access to specialists. What’s more, a severe shortage of primary-care physicians is hindering the implementation of this new system – but healthcare disruptors are ready to combat this issue by investing massively in primary care services. This could revolutionize how we approach health and wellness!

By acquiring various private practices, Optum of UnitedHealthcare is actively disrupting the healthcare landscape. This move has enabled them to shift care away from traditional hospital-based treatment and focus instead on delivering virtual and at-home services – ultimately resulting in lower costs for patients while simultaneously improving patient outcomes!