Value-based care (VBC), which rewards providers for improving patient outcomes rather than billing for procedures, is a key driver of the digital health market’s growth. Digital tools—such as EHR analytics platforms, population health management software, and outcome-tracking wearables—are enabling hospitals and clinics to measure and enhance quality metrics, reducing costs associated with readmissions and ineffective treatments. In 2023, VBC contracts accounted for 35% of U.S. healthcare spending, up from 15% in 2020, with payers like Aetna mandating digital health integration for providers to qualify.

Digital health investments in VBC are surging. Companies like Cerner (owned by Oracle) offer analytics tools that identify high-risk patient cohorts (e.g., diabetes patients with poor adherence) to target preventive interventions. Startups like Health Catalyst develop AI models that predict readmission risks, allowing providers to adjust care plans proactively. Market Research Future’s value-based care digital health analysis projects that VBC-driven digital solutions will capture 45% of the global market by 2030, as payers increasingly prioritize cost-effective, outcome-focused care.

Challenges include aligning incentives across stakeholders. Providers must invest in expensive digital tools, yet VBC reimbursements may not fully offset these costs, particularly for smaller clinics. Data standardization is also critical; without consistent metrics, outcome tracking becomes unreliable. Patient engagement is another hurdle; even with tools, 30% of patients fail to use wearables or apps consistently, undermining data accuracy. Addressing these requires collaborative partnerships between payers, providers, and tech firms to share costs and design user-friendly tools.

The future of VBC in digital health lies in deeper integration. As payers adopt "total cost of care" models, digital tools will become essential for tracking long-term outcomes (e.g., 5-year cancer survival rates) and optimizing resource allocation. Innovations like real-time outcome dashboards, which display patient progress across care teams, could enhance coordination. Market Research Future’s report provides insights into VBC contract structures, key digital tools, and strategies to boost patient engagement, guiding stakeholders to thrive in this outcome-driven healthcare landscape.