How Value-Based Care Contracts Improve Health Outcomes
Data around value-based care shows it leads to improved quality, heightened patient and care provider satisfaction, and better access to more affordable healthcare. To help drive these outcomes, we've invested in value-based contracts for more than a decade.
By supporting care providers with carefully designed innovative economic incentives, data insights, and expert consultation, we’re able to help them improve their patients’ whole health and succeed under agreed-upon levels of shared risk. A shared-risk arrangement is an agreement between healthcare providers and payers where both parties assume financial risk for the cost and quality of care.
In 2024, 65.5% of our total medical expenditure was allocated to value-based care, with 37% in shared risk, an increase of 4% from the prior year.1
By recognizing high-quality, efficient care through appropriate value-based arrangements, we’ve seen positive health outcomes across all populations and lines of business. Additionally, value-based arrangements enable financial success for care providers; in 2024, value-based care providers earned more than $1.2 billion in additional payments from our affiliated health plans.2
Advancing the Conversation
In value-based care, everything really surrounds data. So being able to transparently share data between our care teams and your care teams at Elevance Health is super important. [We have] really great collaborative, equitable agreements, and it's been really fun to do that work together.
President, TriHealth Population Health Organization, TriHealth
Driving Better Quality of Care While Lowering Costs for Millions of People
Contributing experts: Salma Khaleq and Ariel Bayewitz
In 2023, healthcare spending in the U.S. climbed to $4.8 trillion, accounting for 18% of the gross domestic product, yet Americans experience poorer health outcomes compared to other high-income countries.
We’re helping drive better health and lower costs by ensuring that our affiliated-health plan members receive high-quality, cost-efficient care, and outstanding experiences. This is achieved through our value-based payment arrangements.
Aligning Reimbursement and Quality of Care Supports Patient Safety
Contributing experts: Eugene Hsu, MD, and Sai Ma
Protecting the safety of our members while they receive care is one of our most important responsibilities.
Our affiliated health plans received approximately $1.1 billion in claims in 2023 related to preventable adverse events. Employers who pay medical expenses directly on behalf of their employees shouldered 40% of these costs.3
This is why we design payment arrangements that reward safety efforts and recognize care providers who keep patients from harm.
Comprehensive Care Improves the Member Experience
Contributing experts: Matt Miller, MD, and Carolyn Langer, MD, JD
Access to advanced primary care is a critical need in the United States with more than 100 million people lacking a primary care provider. To help address this crucial gap in care, Elevance Health is working with external partners to develop a primary care platform that supports whole health.
Collaboration Creates Meaningful Value for Care Providers and Members
To help drive better outcomes through our value-based care efforts, we collaborate with care providers by tracking and sharing quality and health metrics for their practices. This ensures our partners have the right data, at the right time to help improve healthcare for patients, care providers, and payers.
Supporting Care Providers
Discover how being active partners that go beyond the contract can have a real impact on health. By working closely together with our care provider partners, we can make a meaningful difference.
Committing to Whole Health
Together with care providers, we’re working to address people’s physical, behavioral, and social needs — and improve healthcare quality, outcomes, and experience.
Collaborating for Success
Supporting care providers with tools, resources, and data enables timely, informed decisions to help improve the health of the people in our communities.
Connecting for Health
The right tools and solutions can connect the dots between care providers, health plans, employer groups, and consumers to deliver whole health more affordably.
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How Can a Company Like Elevance Health Help Improve Patient Safety in Hospitals?Even though employer-sponsored health plans use value-based care* (VBC) agreements widely, they have limited effect on patient safety unless contracts are explicitly designed to reward it. How can patient safety measures be better integrated into VBC contracts and line up financial incentives with quality performance?
Elevance Health Impact
A Focus on Quality Drives This Successful Value-Based Care ProgramData shows value-based care leads to better and more equitable health outcomes, increased patient and care provider satisfaction, better access, and more affordable care. When delivery and payment models are aligned around quality of care rather than quantity, they drive better health outcomes and help curb overall healthcare costs.
A Whole Health Story
Fee-For-Service vs Value-Based Care: What’s the Difference Between the Two Models?Fee-for-service has been the primary way to pay care providers for decades. As the healthcare industry continues to evolve, another payment and care delivery methodology has emerged: the value-based care model.
1 Elevance Health, internal reporting (January 2025).
2 Elevance Health, internal reporting (January 2025).
3 Elevance Health, internal analysis (January 2024).