Written by: Dr. Wyatt Decker
Published: Dec. 9, 2025

The term “value-based care,” was popularized in the early 2000s as a way to advocate for the transition from a volume-based health system to one that is more focused on what is valuable for the patient: outcomes.

Two decades later, it’s a term that is frustratingly misunderstood, even though its definition has changed very little.

The term “value-based care” is imperfect. Most people I talk to dislike it. It's broad enough to insert your own definition. For some, it carries the implication of "cheap" rather than better care.

For others, it’s just another corporate buzzword. The consensus is that there is no consensus — we have yet to identify a term that better resonates with patients, clinicians, and the broader public, and provides the clarity we need.

Unfortunately, with misunderstanding comes distrust and skepticism. But despite the flaws of the label, “value-based care” represents something important: a long overdue reorientation of how we deliver and pay for health services.

The U.S. health system spends more than any other developed nation while achieving worse outcomes. The core idea behind value-based care — rewarding health outcomes rather than volume of services — represents a way forward.

In our current fee-for-service system, providers are paid based on the number of services they provide, regardless of whether those services result in better health outcomes. Value-based models flip this equation: Reimbursement is tied to keeping people healthy, detecting problems early and coordinating care effectively. Value is derived by the patient.

Peer-reviewed research shows this approach works. Patients in the most comprehensive value-based care arrangements were 43% less likely to be hospitalized for a chronic condition and 19% less likely to go to the emergency department — because their health is managed proactively.

Realignment to value-based care matters most for those who struggle under the current system, including rural Americans facing limited access, low-income patients navigating fragmented care and people with chronic conditions needing coordinated management.

The Health Care Transformation Hub exists to tackle these challenges: moving beyond semantic debates to examine what actually works, grounded in peer-reviewed research and diverse perspectives.

We’re focused on evaluating and uplifting systems that serve patients, support providers and build a more effective health system. Call it what you want — it's work worth doing.