The transition to value-based care (VBC) is fundamentally transforming the healthcare landscape, and 2025 is poised to be an inflection point to see whether the promise of VBC can be realized. For healthcare professionals – and especially for ambulatory care practices – embracing the nuances of this dynamic environment is essential not only for delivering high-quality care at scale, but also for ensuring the viability of a wide range of ambulatory care models to ensure access.
The Transition to Value-Based Care
Value-based care (VBC) payment models are revolutionizing the way we manage healthcare in the U.S.
Each year, athenahealth administers a nationally representative survey to about 1,000 U.S. physicians measuring sentiments around the biggest issues affecting the healthcare industry. Our 2024 survey revealed that while fee-for-service (FFS) remained the predominant payment model, nearly half (49.2%) of physicians were utilizing at least one VBC payment model. While hesitations exist, healthcare trends suggest that incorporating VBC payment models may no longer be optional in the future. And while academic medical have been slower to alter practice models due to their current clinical workflows, physical infrastructure costs, and other economic incentives specific to inpatient care, ambulatory care practices have the agility and incentives to invest in VBC programs.
Economic Advantages of Value-Based Care
Physicians recognize the potential economic advantages of VBC, with 15.1% citing it as a key factor in managing U.S. healthcare costs, second only to price transparency. Notably, there were no statistically significant differences in sentiments toward price transparency between VBC and FFS physicians, suggesting a widespread interest among healthcare providers in aligning cost and quality through transparency, regardless of their payment model.
The Importance of Interoperability
Furthermore, physicians using at least one VBC payment model were 2.3 times as likely as exclusively FFS physicians to believe that enhanced connectivity between information systems could have a significant impact on healthcare cost management. Nearly a quarter (23.1%) of physicians using VBC expressed this view, compared to 11.5% of FFS physicians. This finding aligns with prior research indicating that effective interoperability streamlines workflows, reduces complexity around data silos, and shifts the focus to delivering high-quality care, all of which are essential for successful VBC implementation.
EHRs as Vital Solutions
For physicians using at least one VBC payment model, electronic health records (EHRs) are not simply documentation tools, but vital solutions for patient care management and administrative burden reduction. Physicians utilizing VBC models were nearly twice as likely to agree that their EHR is reducing the time spent on administrative tasks. This observation aligns with previous research which has found that FFS models can create a higher cost for patients, individual practices, and the broader healthcare system (e.g., through multiple transactions, potential physician-insurance disputes).
Embracing Technology and Innovation
Additionally, VBC physicians exhibit a greater receptiveness to adopting artificial intelligence (AI) and other emerging technologies. Compared to FFS physicians, those using VBC models were 2.1 times as likely to agree that AI is beneficial in reducing their workload. This trend is particularly relevant given recent findings from the American Medical Association (AMA), which suggest that AI can enhance operational efficiency, cost-effectiveness, and patient outcomes within VBC practices.
The Future of Value-Based Care
In conclusion, physicians are recognizing the transformative power of VBC payment models in revolutionizing the way we manage healthcare costs in the U.S. and alleviating administrative burdens that often bog down practices. These findings suggest that physicians committed to VBC tend to be more agile and eager to adopt new technologies to meet the demands of a changing healthcare landscape.
Physicians are recognizing the transformative power of value-based care. They understand the potential of these payment models to revolutionize the way we manage healthcare costs in the U.S. while incentivizing proactive, patient-centered care. But hurdles to successful participation – from administrative and documentation burdens to the need for effective, interoperable technology to achieve a comprehensive view of patients – are holding too many back. Our findings suggest that physicians committed to VBC tend to be more agile and eager to adopt new technologies to meet the demands of a changing healthcare landscape.
The Journey Ahead
The journey to fully embracing VBC, however, is still in its early stages. Many practices are hesitant to take on the financial risks and responsibilities for patient populations. Soon, athenahealth will release the results of the fourth annual Physician Sentiment Survey, providing an update on how these attitudes have evolved in the last year. We look forward to sharing those results in the coming months.
*Note: Data came from the 2024 Physician Sentiment Survey of 1,003 physicians nationwide, commissioned by athenahealth and fielded by Harris Poll, Jan 2024. For more information, visit https://www.athenahealth.com/resources/blog.
Jennifer Mandelbaum
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