More organizations are investing in VBC

For the report, Innovaccer and NAACOS surveyed 168 executive and clinical leaders at 142 healthcare organizations, including health systems, accountable care organizations, specialty care providers, federally qualified health centers, and more.

According to the report, over 60% of organizations have increased their participation in VBC programs, suggesting that there is growing momentum toward VBC adoption across the healthcare industry. When asked to rate the momentum toward VBC, most respondents said there was medium momentum, both internally and across the industry. 

Although the revenue impacts of VBC are still relatively modest for many organizations, 64% of respondents said they expect to see a positive revenue shift toward VBC in 2025 compared to 2024. Currently, 30% of organizations say that at least 25% of their revenue is associated with VBC contracts, and 13% have already passed the 50% revenue mark.

To accelerate their transition to VBC, organizations are investing in several areas, including data analytics and AI (31.2%), care management solutions (30%), and staff training and development (22.6%).

Barriers to VBC adoption remain

Although interest in VBC continues to grow, there are also several barriers to adoption. According to the respondents, the top four obstacles to VBC adoption are financial risk (87%), provider resistance (80%), lack of data interoperability (75%), and regulatory complexities (69%).

"Adopting a value-based care (VBC) strategy is no small feat; it comes with unique challenges, roadblocks, and uncertainties that can make the transition from the fee-for-service model difficult and unnerving," said Benjamin Cassity, director of research and strategy, VBC at KLAS Research. "In the provider world, this uncertainty is compounded by shrinking margins and growing demands on time and resources."

To help accelerate the adoption of VBC, respondents said greater financial support and incentives were needed, as well as better data sharing capabilities with payers and better technology solutions. 

The report also included four tips to help organizations ease their transition to VBC:

1.       Take a patient-centered approach to care, focusing on care coordination, health outcomes, and service

2.       Support your clinicians to avoid burnout and improve engagement

3.       Carefully manage your financial risk across your different populations

4.       Implement an integrated platform to unify data sources and provide actionable insights throughout your organization

"As the shift to value-based care accelerates, the research highlights a critical truth: successful transformation demands more than just intent, it requires deep investments in data, technology, and partnerships," said Abhinav Shashank, cofounder and CEO of Innovaccer. "This joint report with NAACOS provides clarity and direction for healthcare leaders navigating the complexities of modern reimbursement models."