In the life sciences and healthcare industries, value-based care is the predominant enabling model that offers the potential to bring together life sciences companies, providers, payers and patients to improve both financial and health outcomes. At the same time, it requires robust platforms to measure, benchmark, report and optimize those outcomes. Success in this new environment requires all stakeholders to collaborate and develop frameworks that can be digitized into agile technology platforms and systems of intelligence to gather data and distill meaning.
The basic idea of value-based care is that reimbursements are based on the quality of the outcome of a healthcare procedure, episode of care, use of a device or therapy. Life sciences companies, from biopharma to medical device manufacturers, are rewarded for improving health outcomes and/or reducing the costs to achieve those outcomes — but paid less when their therapies are less efficacious than expected.