Since 2015, healthcare Smart Money VCs have invested $5.4B in startups driving value-based care. From population health management software to tech-enabled Medicare Advantage plans, we examine top investors’ deal activity across the space.
Since its inception in 2010, value-based care (VBC) has served as a critical part of US healthcare reform.
Under the VBC structure, providers are paid for the quality of their patients’ health outcomes rather than the quantity of services provided. This contrasts the traditional fee-for-service (FFS) arrangement, which compensates providers according to the number of services performed.
Recent regulatory changes have lowered barriers to adopting the VBC model, such as difficulty reporting program outcomes and misaligned incentives between payers and providers.