In response to escalating healthcare costs, increasing service demands, and significant variability in clinical outcomes, Value-based healthcare (VBHC) has emerged as a transformative model aimed at improving patient outcomes while optimizing resource use. Introduced by Porter and Teisberg, VBHC redefines healthcare success by measuring the value delivered to patients—defined as the health outcomes achieved per dollar spent—rather than the volume of services provided. This chapter explores the foundational principles of VBHC, including outcome and cost measurement, integrated practice units, outcome-based reimbursement models, digital innovation, patient-centered care, and value-based competition. It discusses the operational and cultural shifts required to implement VBHC and the key role of standardized outcome metrics, such as those developed by ICHOM. The chapter provides an in-depth analysis of the model’s advantages, such as improved outcomes, cost efficiency, and enhanced patient engagement, while also addressing the associated risks, including equity concerns, data infrastructure demands, and resistance to change. Finally, it highlights the continued relevance of VBHC in promoting financial and clinical sustainability amidst rising chronic disease burdens and technological evolution. By aligning incentives with long-term patient well-being, VBHC presents a viable path toward more effective, equitable, and sustainable healthcare delivery in the decades to come.