A new Actuary article highlights how value-based care could reshape healthcare in Asia, improving outcomes, lowering costs, and addressing challenges from ageing populations to rural gaps.
Healthcare systems across Asia are under increasing strain from demographic shifts, rising chronic disease burdens, and uneven access to care. According to The Actuary, the fee-for-service model that dominates much of the region is proving financially and operationally unsustainable. Experts argue that value-based care (VBC), which links payments to patient outcomes rather than service volume, could provide a pathway to more sustainable and equitable health systems.
VBC has already shown promise in the United States and Europe, where it has reduced readmission rates, encouraged preventive care, and generated billions in savings. In Asia, early adoption is emerging through initiatives such as India’s Ayushman Bharat programme and Indonesia’s Jaminan Kesehatan Nasional. These models have demonstrated potential for lowering out-of-pocket costs, expanding access to rural populations through telemedicine, and reducing overcrowding in hospitals.
The article also highlights the important role actuaries can play in supporting the transition. By leveraging data analytics, actuaries can forecast demand, evaluate financial risks, and measure the effectiveness of VBC interventions. With targeted reforms, investment in digital infrastructure, and public-private collaboration, Asia could harness VBC to build resilient, efficient, and patient-centred systems for the future.
