Hospitals and health systems are under increased pressure to compete on cost as Big Tech and retail giants continue to expand into healthcare.

With more competitors entering the sector, Becker's reports some health systems are accelerating their shift away from fee-for-service medicine. They see value-based care models as the key to ensuring long-term financial sustainability, even as their margins have improved from the tumultuous years of COVID-19.

Value-based partnerships are making headlines.

In October, Altamonte Springs, Fla.-based AdventHealth joined forces with Wellvana to redesign its primary care strategy. They share the objective to improve outcomes, reduce the cost of care and expand access by empowering primary care physicians to focus on high-quality preventive care.

Under the partnership, primary care will offer a more balanced approach that focuses on wellness and prevention rather than being driven by sick care, according to Bryan Stiltz, CEO of AdventHealth's primary care network. 

"That starts with integrated, accessible and affordable primary care," Stiltz said. "Guiding our high-performing network through the transition to full risk requires a dependable and innovative partner. Wellvana has the skilled team, actionable technology and customized delivery model to help us provide whole-person care to more people."

Some health systems are attempting the transformation through other partnership models directly with payers.

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