As health systems seek to improve access, reduce costs, and enhance patient outcomes, many are turning to value-based models that reward prevention and coordination over volume and procedures.

A recent Becker’s Hospital Review article on Banner Health’s ambulatory growth illustrates this movement in action. Banner is investing heavily in large outpatient facilities, an expansion that reflects more than just physical growth: the goal is to build a comprehensive, integrated network that supports wellness, early intervention, and population health management.

Similarly, research from EY underscores that value-based strategies are now central to long-term sustainability for health systems nationwide.

The Rise of Outpatient Care

The forces fueling this outpatient surge are both economic and patient-driven. Technological innovation has made many procedures safer and faster to perform outside hospital walls. Payors are incentivizing lower-cost care delivery settings, while patients increasingly demand convenience and accessibility. According to McKinsey & Company, ambulatory and home-based care settings are expected to outpace hospital growth as insurers and providers encourage site-of-care shifts toward more efficient environments. Outpatient volumes continue to rise as systems pursue diversification and operational efficiency, creating opportunities to integrate clinical care, technology, and community-based health delivery.

Banner Health’s Outpatient Strategy

Banner Health provides a compelling example of how strategic outpatient investment can drive value-based outcomes. “We are growing our health plans and networks to create more affordable care and make significant investments in wellness,” said Amy Perry, Executive Vice President at Banner Health, in Becker’s Hospital Review.

In addition to expanding its Banner Health Care Plus facilities, Banner recently acquired VillageMD in Northern Colorado — an important move that deepens its physician alignment and expands coordinated primary care access. EY’s analysis reinforces that such partnerships and acquisitions are key to strengthening value-based networks, enabling providers to better manage risk, control costs, and enhance care coordination.

How Outpatient Growth Advances Value-Based Care

At its core, value-based care ties reimbursement to quality and outcomes rather than the volume of services delivered. This model encourages early intervention, chronic disease management, and care continuity— areas where outpatient and primary care networks excel.

According to Optum’s “The State of Value-Based Care in 2025,” 14% of U.S. healthcare payments are now in capitated risk arrangements — double the level seen in 2021. This rapid acceleration underscores how payment reform and outpatient expansion go hand in hand.

Challenges and Market Sentiment

Despite strong momentum, the transition to value-based care is not without challenges. Many providers still face significant hurdles related to data integration, payor alignment, and operational transformation.

A 2025 MGMA report found that only 40% of medical group leaders express a positive outlook on value-based care, citing the complexity of payor contracts and infrastructure limitations as key barriers. Yet, examples like Banner Health demonstrate that sustained investment in outpatient and primary care infrastructure can help overcome these obstacles, creating the foundation for scalable, high-value care delivery.

Real Estate Implications

Healthcare’s outpatient transformation has significant implications for the real estate landscape. The growing emphasis on ambulatory care and decentralized service delivery is driving demand for medical office buildings, surgery centers, and community-based clinics designed with flexibility and patient access in mind.

Developers and investors are responding by creating spaces that are not only operationally efficient but also integrated into local communities, supporting the value-based goals of accessibility and coordination. As health systems reduce reliance on large inpatient campuses, strategic real estate planning becomes a critical tool for achieving both financial and clinical objectives.

The Future of Value-Based Healthcare

The expansion of outpatient care represents far more than a facilities trend — it is a cornerstone of healthcare’s ongoing value-based transformation. Health systems like Banner Health are setting the pace by combining physician alignment, primary care investment, and strategic ambulatory development to build sustainable, patient-centered networks.

As payment models evolve and patient expectations continue to rise, the ability to deliver high-quality, affordable care through accessible outpatient platforms will define the next era of healthcare delivery.