We often talk about value-based care (VBC) as a journey. But more than a destination, it represents a fundamental transformation that requires a holistic, enterprise-wide approach. To succeed, organizations must treat VBC as a strategic priority, aligning clinical, business, and enabling technology functions around a common vision. Without that alignment, health systems are left navigating the competing forces of fee-for-service and VBC, with conflicting incentives and fragmented operations that undermine growth and performance.
VBC is also a dynamic and highly tailored experience — no two organizations follow the exact same journey from a volume-based to a value-based system. Each path is defined by an array of relationships and collaborations between payers, providers, self-funded employers, brokers, and consultants in distinct healthcare delivery regions throughout the country. The transition is also characterized by the unique and varied needs of a population, and the specific industry forces that impact care costs, quality, and access. Success on a VBC journey depends on the ability to adapt — composing the programs and finding the solutions that lead to better outcomes for everyone.
A recent Becker’s Hospital Review interview with leaders from St. Louis-based BJC Health System highlighted how the organization approaches VBC practically, with a clear vision and understanding of their goals. For many organizations — even those with a vision of a value-based future — the challenges lie in building the capabilities needed to support the new functions and workflows that VBC demands. Key questions often include:
That’s where purpose-built value-based care software becomes essential. Below, we explore seven foundational principles that BJC executives highlighted as critical to their VBC success, and how a partner like Cedar Gate Technologies, an IQVIA business — with an end-to-end VBC platform — can help organizations at any stage of their journey operationalize these programs at scale.
VBC is not a single step from fee-for-service to full risk. It is a continuum, and organizations must build the capabilities to manage multiple payment models along the way. Taking that approach helps health systems align clinical, operational, and financial teams to succeed at each stage of the journey.
Population-to-Performance Software
Cedar Gate’s platform is designed specifically for this reality. It supports multiple risk models simultaneously, enabling health systems to manage heterogeneous contracts within a single operating framework. With the ability to customize performance measurement across diverse contract terms, organizations can operate efficiently along the continuum — rather than requiring a wholesale migration from FFS to VBC — while also providing tools to identify new opportunities and scale up or down in each area based on the unique needs of patient and member populations. VBC isn’t one-size-fits-all, so the ability to operate within the nuanced models and programs available is the clearest path to success.
Data is foundational to success in healthcare today, particularly in VBC programs. Organizations need timely, clean, consistent data from across the ecosystem to understand performance, identify opportunities, execute on insights, develop effective and responsible AI strategies, and act with confidence. Without a complete and connected view, they are limited to looking backward instead of improving outcomes in real time.
Unified Healthcare Performance Data
A data management system that unifies claims, clinical, eligibility, pharmacy, and financial data into a single longitudinal performance view builds that foundation for success. It eliminates fragmentation from disparate systems, while offering clean, consistent, timely insights for payer and provider partners in a VBC contract. Near–real-time data updates ensure physicians and care teams will have access to information to influence outcomes — supporting continuous performance improvement rather than after-the-fact reconciliation.
With more than a decade of learning and experience, we’ve learned that VBC works best when accountability is clear and clinicians help shape the model. Success depends on transparent goals with access to underlying data used to determine goal attainment, measurable performance, and a shared commitment to continuous improvement across the organization.
Actionable Performance Transparency
Technology tools built for VBC can better enable this through role-based performance views that translate system-wide program goals into provider-level quality and cost benchmarks. Cedar Gate’s end-to-end platform takes it further, by translating the information into actionable insights for populations and care teams. By linking attribution, utilization, quality, and financial performance, these tools foster clinician ownership of outcomes, and support accountability with near-real-time data and specific next steps.
VBC cannot succeed in primary care alone. To improve outcomes and reduce costs, organizations must coordinate care across the full network, including specialty, acute, ambulatory, post-acute, and home-based settings. That requires connected workflows, strong coordination, and the right technology to support care across the continuum.
End-to-End Population Management
Software tools for VBC must support performance tracking and population health management across all care settings, enabling health systems to measure things like variations in care, potentially avoidable utilization, and downstream leakage. That approach must include tools to align network strategy and care management workflows with financial accountability. Most importantly, any decisions that impact population health must map directly to outcomes and contract economics — not just utilization trends — ensuring sustainability as risk increases.
Applying VBC in commercial populations can be challenging, but it also creates new opportunities. Models such as direct-to-employer arrangements offer clearer accountability, more defined populations, and stronger alignment around cost and quality. Success requires a tailored approach and the ability to build high-performing networks that support these models effectively.
Contract Intelligence & Attribution
The first step toward effective direct-to-employer contracts is software that can perform contract modeling and scenario analysis across fully insured, Medicare Advantage, MSSP, Medicaid, and employer-sponsored populations. Cedar Gate’s advanced Contract Modeling application provides attribution and population segmentation capabilities. This allows organizations to identify which cohorts are truly ready for VBC, and design financially viable programs before assuming risk — addressing some of the most common reasons health systems and providers are hesitant to explore these contracts.
Reducing variation is essential to VBC success. Organizations need the ability to identify potentially avoidable clinical and operational variations, understand their root causes, and take action to improve consistency, quality, and financial performance. Doing that well requires trusted analytics and a shared view across the enterprise.
Performance Variance Analytics
Advanced analytics can identify existing cost and quality variation at the provider, practice, and population levels. When advanced healthcare analytics software is combined with powerful and responsible AI, it can also anticipate future variation and risk. By directly linking variation to contract margin, quality scores, and performance trends, Cedar Gate’s VBC analytics solution helps organizations transform rigid, static care pathways into more predictable and standardized workflows, creating a powerful clinical and financial improvement lever. Once the standardization is in place, our tools support continuous process improvement to adapt to ever-changing population needs and VBC contract goals.
Moving toward full risk requires more than willingness. It requires trust, transparency, and strong alignment between payers and providers. With the right partnerships and capabilities in place, organizations can take on greater risk with confidence, accelerating the shift.
A Purpose-Built VBC Operating System
Cedar Gate offers an advanced end-to-end platform a VBC future. The platform was purpose-built to improve visibility across providers, finance, and payer-facing teams, enabling proactive performance management instead of retrospective reconciliation. When you have confidence in performance, margins, and outcomes, your health system can scale VBC efforts in every line of business — from MSSP, Medicaid, and MA to commercial value-based programs — deliberately and sustainably.
Value-based care success today and in the future hinges on having the “operational muscle” to succeed in any alternative payment model. Your technology partner provides the foundation on which to build out those capabilities and continually adapt and improve as VBC evolves.
Talk to Cedar Gate today about our scalable, composable platform to help you continue your journey toward a value-based future.