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Published on: Nov 06, 2021
2 minute read
By: Second Medic Expert

What Is Value-based Care?

Value-based care is a payment system that incentivizes quality and cost outcomes, rather than merely rewarding procedures or volume of care. Value-based care emphasizes patient health outcomes over speed and quantity of services, with incentives to improve both the value and the economics of healthcare delivery.

Value-Based Care (VBC) is an American healthcare payment model in which hospitals, doctors, and other providers are paid based on patient care quality metrics. Value-based care has five core components to create successful systems that serve patients better at a lower cost. First, it includes increasing accessibility of information about the costs and quality of treatment options through an easy-to-navigate "medical marketplace." Second, providers are reimbursed for wellness work critical for detecting disease earlier in its course when treatment often works best -- so long as they accept shared accountability in achieving outcomes. Value-based care shifts incentives on payment from volume to value. Value is the metric on which you are graded, not volume.

Value-based care is "an approach to health care that emphasizes measurable outcomes, coordinated care, and shared accountability." The idea is that the cost of healthcare should reflect the value it provides.

Value-based care includes incentivizing patients via alternative payment models (APMs) to influence behaviors that lead to patient outcomes. The incentives are not provided directly for the desired behavior but instead are designed to promote the best possible outcomes, which then drives financial savings for all parties involved.

Value-based care or “shared risk” arrangements between healthcare providers have been shown to be much more cost-effective than traditional fee-for-service approaches because they shift some of the financial risks onto providers and away from consumers. Many providers are now seeing value in adopting these new contracts as many stakeholders prefer its approach of shared responsibility for addressing higher costs before passing on the burden along with a downline supplier chain. Value-based care is a method that fuses health care with economics to optimize measurable clinical and economic outcomes while supporting the patient's goals.

Value-based healthcare generates increased value while decreasing costs, an updated approach using a broader set of quality and cost metrics to manage health care decisions. Physicians are compensated not just for providing or ordering a service, but rather on providing improved health outcomes.

Value-based care is the new science behind healthcare. It's about measuring outcomes, not procedures. And it's more than just following guidelines or cutting costs-it means substantially improving quality and lowering cost for about 30% of the population who are both out of control on cost, and “out of care” because they're high risk (the disabled, sick young adults). VBC requires systematic redefinition of patients' goals for care; broader use of cheaper treatments; using results to do what has never been done before--measurement; looking at four major objectives; reducing cost without reducing quality (e.g., by prevention); streamlining delivery through primary rather than specialized providers; making prevention one objective.

Value-Based Care is a strategy that incentivizes healthcare providers to provide the best care possible while reducing unnecessary and costly treatments. Under traditional fee-for-service models, providers get paid for each test they perform and every procedure they perform -- so their incentives are not focused on delivering the most appropriate treatment at the right time. Under value-based care, providers get paid if their patients' health improves - no matter whether hospitals, doctors' offices, or other settings where patients receive care.

Value-Based Care has been proven to reduce readmissions and eliminate unnecessary hospitalizations by 15%. It also reduces costs by 20?cause it's all about targeting what really matters -- service delivery with measurable outcomes for consumers of healthcare services.

Value-based care is a model of healthcare payment in which a clinician does not get paid for the number or type of procedures performed, but rather based on how well they manage a patients' disease. The goal is to incentivize excellent, high-value care by rewarding quality and eliminating insurers' financial incentives to encourage overtesting and overtreatment.

Value-based care is a new term that can be seen as a version of population health management. Value-based care aims to align the incentives of providers and payers with those who bear the most cost from healthcare, which traditionally have been patients. In other words, value-based care is designed for high-level profit by encouraging preventive practices and sharing resources with community members. The goal is to make a profit off a healthy person rather than unhealthy people seeking treatment for medical emergencies.

It's very much related to prevention and seeks not to reward investments in unnecessary treatments but instead reward solid preventative health practices like diet, exercise, etc.

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20% Health Time | A Smarter Way to Build Workplace Wellbeing

Modern workplaces are increasingly recognising that employee health is not separate from performance—it is foundational to it. Long work hours, constant digital connectivity and rising stress levels have led to burnout, lifestyle diseases and declining engagement across industries. In this context, the concept of 20% Health Time has emerged as a forward-thinking approach to workplace wellness.

20% Health Time allows employees to dedicate a portion of their paid working hours specifically to activities that support physical, mental and preventive health. Rather than treating wellness as an after-hours responsibility, this model integrates health directly into the work culture.

What Is 20% Health Time?

20% Health Time is a structured workplace initiative where employees are encouraged or allowed to spend approximately one-fifth of their working time on health-related activities.

These activities may include:

physical exercise or movement breaks
mental wellness practices
health education sessions
preventive health screenings
stress management and recovery

The core idea is simple: healthier employees perform better and sustain productivity longer.

Why Traditional Wellness Programs Fall Short

Many organisations offer wellness benefits such as gym memberships or annual checkups. While valuable, these programs often fail because:

employees lack time to use them
wellness is seen as optional
participation remains low
benefits are disconnected from daily work

20% Health Time addresses these gaps by embedding wellness into regular work hours.

Why Health Time Matters in Today’s Workplace

Rising Lifestyle Disease Burden

Public health data shows increasing rates of:

diabetes
hypertension
obesity
mental health disorders

These conditions affect working-age adults and directly impact productivity and healthcare costs.

Burnout and Mental Fatigue

Constant pressure and lack of recovery time lead to:

chronic stress
disengagement
absenteeism
high attrition

Health Time creates space for recovery and resilience.

Sedentary Work Culture

Desk-bound work contributes to:

musculoskeletal problems
cardiovascular risk
low energy levels

Dedicated health time encourages movement and prevention.

How 20% Health Time Benefits Employees

Improved Physical Health

Regular movement and preventive care reduce long-term health risks.

Better Mental Wellbeing

Time for mindfulness, rest and stress management improves emotional balance.

Higher Energy and Focus

Healthy routines improve concentration and reduce fatigue.

Empowerment and Autonomy

Employees feel trusted to manage their wellbeing, increasing engagement.

How Employers Benefit from 20% Health Time

Increased Productivity

Healthy employees work more efficiently and make fewer errors.

Reduced Absenteeism

Preventive care lowers sick days and health-related disruptions.

Lower Healthcare Costs

Early detection and healthier habits reduce long-term medical expenses.

Stronger Employer Brand

Wellbeing-focused policies attract and retain top talent.

Sustainable Performance

Health Time supports long-term performance rather than short-term output.

Activities That Fit into 20% Health Time

Organisations can tailor activities based on workforce needs:

guided fitness or yoga sessions
walking or movement breaks
mental health workshops
preventive health checkups
nutrition education
stress and sleep management programs

Flexibility ensures inclusivity across roles and work models.

Evidence Supporting Health Time Initiatives

Workplace health research consistently shows that:

preventive health improves productivity
employee wellbeing programs reduce burnout
time invested in health yields measurable returns

According to WHO and workplace wellness studies, integrated health initiatives deliver better outcomes than standalone benefits.

Addressing Common Concerns

“Will this reduce working hours?”

No. Health Time improves efficiency, offsetting time spent through better performance.

“Is it suitable for high-pressure roles?”

Yes. High-stress roles benefit the most from structured recovery time.

“How do we measure impact?”

Metrics may include:

reduced absenteeism
improved engagement scores
lower healthcare claims
better retention

Implementing 20% Health Time Effectively

Successful implementation requires:

leadership support
clear guidelines
flexible scheduling
inclusive activity options
regular feedback

Health Time works best when seen as a cultural shift, not a perk.

Long-Term Impact on Organisational Health

Over time, organisations adopting Health Time observe:

healthier workforce
improved morale
reduced burnout
stronger team cohesion
sustainable growth

These benefits compound year after year.

Conclusion

20% Health Time represents a progressive shift in how organisations view employee wellbeing. By dedicating work time to health, companies acknowledge that productivity and wellbeing are deeply connected. Rather than reacting to burnout and illness, Health Time promotes prevention, balance and resilience. In a future where talent, performance and sustainability matter more than ever, integrating health into the workday is not a luxury—it is a strategic necessity.

References

World Health Organization (WHO) – Workplace Health Promotion Guidelines
Indian Council of Medical Research (ICMR) – Lifestyle Disease and Work Health Reports
NITI Aayog – Preventive Healthcare and Workforce Wellbeing Strateg
Lancet – Workplace Wellness and Productivity Studies
Harvard Business Review – Employee Wellbeing and Performance Research
Statista – Corporate Wellness Trends and ROI Data

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