Definition

Value-Based Care

A healthcare payment model in which providers are compensated based on patient health outcomes and cost efficiency rather than the volume of services delivered (fee-for-service). Under value-based care contracts, a physician or health system receives a flat fee to manage a patient's health over a period of time — incentivizing proactive monitoring, preventive intervention, and efficient care coordination rather than maximizing appointment volume. Anish Sebastian identifies value-based care as a key catalyst for RPM adoption: when physicians are paid to keep patients healthy rather than to see patients, the economic case for investing in home monitoring tools becomes straightforward.