Why health care providers and facilities need to transition to value-based care

Margin pressures of a health system continue to grow, along with higher labor costs following the so-called great resignation of 2021. In fact, more than half of U.S. hospitals ended 2022 with negative operating margins. Financial sustainability, a depleted workforce and soaring inflation are the most common concerns of health care executives looking for alternative solutions.

The consequences of sitting out the transition to value-based operations are clear: lack of preparedness for mandatory value-based reimbursement programs, limited value proposition to employers, and market positioning with patients lagging behind best practices.