Why Value-Based Care in the U.S. Is Still Stuck in First Gear
Despite years of momentum, most U.S. value-based care efforts remain fragmented and small-scale—yet organizations like CHESS Health Solutions are proving that scalable, physician-led models can drive real transformation.
Winston-Salem, NC, July 30, 2025 (GLOBE NEWSWIRE) -- America’s health care system is facing a reckoning. Costs are climbing. The population is aging. Workforce shortages persist. Health disparities are widening. These pressures are pushing providers, payers, and policymakers to rethink how care is delivered, and value-based care (VBC) has been one of the most talked-about solutions.
In theory, VBC is simple: improve patient outcomes while reducing costs. In practice, it’s been anything but easy.
A recent review of 50 global value-based care initiatives published in the Journal of the American Medical Association Health Forum found that most programs, especially in the U.S., are still small in scope, siloed in departments or individual hospitals. Despite nearly two decades of promotion, we’re still a long way from a full systemwide transformation.
What’s Working and What’s Not
Since its introduction in 2006, value-based care has gained ground as a strategy to reward better results, not just more services. Bundled payment programs, integrated care pathways, and patient-reported outcomes are showing promise in areas like joint replacement and cardiac care. But these examples are the exception, not the rule.
In the U.S., most VBC programs:
- Focus on narrow disease groups or specialties.
- Operate within a single hospital or health system.
- Rely on short-term pilots or grant-funded models.
- Struggle to scale due to fragmented payer structures and lack of policy coordination.
Even national programs like the Comprehensive Care for Joint Replacement (CJR) or Bundled Payments for Care Improvement (BPCI) are largely carried out at the provider level, rather than being integrated into broader regional or national strategies.
Still, there are bright spots. Organizations like CHESS Health Solutions are proving that physician-led, value-focused models can scale when clinical transformation is paired with strategic contracting, robust data infrastructure, and a commitment to outcomes.
Why Scaling Is So Hard
One of the biggest barriers to value-based care in the U.S. is structural fragmentation. Multiple payers, disconnected data systems, and fee-for-service incentives make it difficult to coordinate care or align around shared goals.
Additionally, most value-based initiatives lack the digital backbone and real-time analytics needed to track outcomes, costs, and equity metrics. Without transparent benchmarking, it's hard to know what’s working, or how to replicate it at scale.
CHESS Health Solutions has tackled this challenge head-on by investing in care management infrastructure that supports proactive, high-touch patient engagement and population health analytics. CHESS has helped practices transition from volume to value with measurable success in quality metrics and patient outcomes.
Culture also plays a role. Shifting from volume to value means rethinking how success is measured, how teams collaborate, and how patients are engaged. That kind of change requires more than clinical tweaks. It needs long-term investment, top-down leadership, and incentives that reinforce alignment across the entire system.
What Needs to Change
To unlock the full potential of value-based care in the U.S., we need to move from a patchwork of programs to a cohesive strategy. That includes:
- Data systems that connect the dots across providers, payers, and settings of care.
- Payment reform that rewards value, not volume, beyond limited bundles or performance bonuses.
- Policies that push for equity and sustainability—not just cost containment.
There’s also an opportunity to look beyond hospitals. Many successful VBC models are emerging in community settings, primary care, and Medicaid programs. These are often overlooked but are critical to scaling value-based approaches nationally.
CHESS’s work across diverse communities, particularly in primary care transformation, demonstrates how local clinical leadership combined with centralized data and contracting support can drive real, sustainable change.
The Bottom Line
Value-based care in the U.S. isn’t new—but it's still far from where it needs to be. We’ve proven that better outcomes and smarter spending are possible. The challenge now is making those results the norm, not the exception.
That will require more than innovation. It demands coordination, investment, and the political will to build a health system that rewards what matters: health, not just care.
Yates Lennon, MD, MMM, has served as the President at CHESS Health Solutions since 2021. Prior to this, he served as the Chief Transformation Officer, engaging physicians and their staff to drive practice transformation. He is nationally known for his work in quality, previously serving on the American Medical Group Association (AMGA) Quality Leadership Council and the National Association of Accountable Care Organizations (NAACOS) Quality Committee. Before joining CHESS, Dr. Lennon served as Chief Quality Officer for Cornerstone Health Care and practiced OB/GYN for 23 years.
CHESS Health Solutions is a physician-led value services company dedicated to improving patient outcomes while reducing healthcare costs. With a focus on innovation and quality, CHESS continues to be at the forefront of transforming healthcare delivery. Through sustained clinical innovation, contract negotiation expertise, and high-touch care, CHESS is committed to success in quality improvement, cost reduction, and most important, better patient outcomes. Visit chesshealthsolutions.com for more information.
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Thomas Royal CHESS Health Solutions 336-821-7065 troyal@chesshealthsolutions.com
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