Radio Advisory 243: What’s now and what’s next in value-based care
Mar 18, 2025
Erik Johnson, a leader in value-based care at Optum Advisory, joins Clare Wirth, an Advisory Board expert, to dive into the shifting landscape of healthcare payment transformation. They discuss the complexities and rising adoption of value-based care, particularly post-pandemic. The conversation explores the role of specialty care, the impact of Medicare Advantage, and the importance of bundling arrangements. They also highlight emerging trends in provider attitudes toward risk and the optimistic financial outcomes seen in VBC models.
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Value-Based Care is Growing
- Value-based care payments now represent about 14% of U.S. healthcare payments, doubling since 2021.
- Despite uncertainty, the drivers for VBC like high costs and disaligned incentives have worsened, suggesting growth ahead.
VBC is a Long Journey
- Value-based care progress is slower than expected because it's a long-term cultural shift, not a quick switch.
- The industry will operate with multiple payment models rather than one dominant system.
Make VBC a Core Priority
- Treat value-based care as a core organizational priority, not a side project.
- Executive commitment and daily focus by dedicated teams are essential for success.