Health care costs are unsustainably high and health outcomes are suboptimal. To curb these trends, the incentive and movement toward value-based care is gaining momentum. Data is available to make the right decisions to transition into performance incentives and patient-centered care, but harnessing the value of that data may seem complex. This paper describes the transformative tools that use advanced analytics to assist health care organizations balance the goals of cost reduction and quality improvement through analysis of episodes of care.