Is value-based care the right choice for your employees?

Making healthcare decisions for your employees isn’t just about cutting costs—it’s about ensuring they get the right care at the right time, without unnecessary delays or expenses. That’s exactly what value-based care (VBC) is designed to do.

Unlike the traditional fee-for-service (FFS) model, which rewards more tests, procedures, and doctor visits, VBC is different. It focuses on patient outcomes, meaning doctors and hospitals are paid based on how well they improve a patient’s health—not just how many services they provide. This approach prioritizes preventive care, chronic disease management, and better coordination among healthcare providers.

For employees, this means less stress, fewer unnecessary medical visits, and more effective treatments (in addition to lower costs). For employers, it translates to lower costs, a healthier workforce, and a more productive workplace.

If your company still operates on a fee-for-service model, you’ve likely noticed ongoing challenges—rising insurance premiums, employees struggling with delayed or fragmented care, and an endless cycle of medical tests that don’t always lead to real solutions. Value-based care helps change that by offering better treatment plans, stronger care coordination, and lower costs for everyone.

According to the Centers for Medicare & Medicaid Services (CMS), companies that have switched to value-based care have seen a 10% decrease in hospital readmissions and a 15% improvement in chronic disease management. Carrum Health, which has driven the shift to VBC in the commercial market, has been proven to direct 30% of patients to less-invasive treatment and reduce post-surgical readmissions by 80%. Employees become healthier, more productive, and take fewer sick days, while employers benefit from more predictable healthcare expenses

4 examples of how value-based care works in real life

To understand how value-based care transforms healthcare experiences, let’s look at real people who have benefited from this model. These stories highlight how better coordination, efficient treatments, and smarter cost management improve both employee health and business operations.

Value-based care example #1: Frank’s hip replacement

Frank had severe hip pain that affected his ability to work and enjoy daily activities. Under a traditional fee-for-service system, he would have faced months of waiting, multiple referrals, and unnecessary tests before getting surgery. Instead, with value-based Care, his case was handled by a coordinated team that scheduled his surgery at a top-rated facility, arranged physical therapy, and monitored his recovery. The process was smooth, allowing him to heal faster with fewer complications. The result? A shorter hospital stay, quicker rehabilitation, and lower medical costs for both him and his employer. Read Frank’s full story

Value-based care example #2: David’s spinal fusion surgery

David suffered from chronic back pain that made sitting at a desk all day unbearable. If he had gone through traditional healthcare, he likely would have received temporary fixes—painkillers, repeated scans, and multiple referrals—before finally getting the right treatment. But with value-based care, David was immediately referred to a top spinal surgeon who designed the best approach for his condition. His post-surgical rehabilitation was included in the care plan, ensuring a smooth and affordable recovery. Thanks to this efficient model, he returned to work sooner than expected, without unnecessary medical bills or financial stress. Read David’s full story

Value-based care example #3: Abbie’s cancer care journey

Abbie’s cancer diagnosis was overwhelming, and navigating treatment options only added to her stress. Typically, people diagnosed with cancer face long waits for referrals, insurance approvals, and unexpected medical bills. But under value-based care, Abbie’s journey was different. She was quickly connected to a specialized oncology team that developed a personalized treatment plan. Her chemotherapy, radiation, and follow-up care were all handled under a single, well-organized process. With no delays and clear cost structures, she could focus on her recovery instead of worrying about finances. Her employer also benefited by avoiding the higher costs associated with late-stage treatments. Read Abbie’s full story

Value-based care example #4: Sue’s knee surgery

Sue had chronic knee pain that limited her movement and affected her daily routine. In a traditional healthcare model, she would have dealt with long wait times, multiple unnecessary imaging tests, and unclear pricing before finally getting surgery. With value-based care, her experience was much simpler. She received clear, upfront pricing for her knee replacement, ensuring no surprise medical bills. Her post-operative care and physical therapy were included in the treatment plan, leading to a smooth recovery and a quicker return to normal activities. The structured, cost-efficient approach meant she could move forward with confidence, knowing she was receiving the best care without unnecessary expenses. Read Sue’s full story

Why employers should embrace value-based care

These stories show how value-based care benefits both employees and businesses. Instead of encouraging more tests and procedures, this model rewards high-quality, cost-effective care that actually improves patient health. For companies, this means lower healthcare costs, a more productive workforce, and predictable spending on employee benefits.

Switching to value-based care gives employers the ability to reduce unnecessary treatments and hospital visits while ensuring that employees receive the best care possible. Healthcare is evolving, and businesses that adopt value-based care now will be better positioned for the future. This model doesn’t just cut costs—it creates a healthier workplace where employees feel supported and valued.

If you’re looking for a way to enhance employee well-being while controlling healthcare spending, value-based care is the solution you need. Would you like help in transitioning your business to a value-based care model? Let’s explore how your employees can get better healthcare while your company saves money.