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Improved health equity to add $2.8 trillion to U.S. GDP by 2040?
Health equity improvement could yield $763 billion in corporate profits and prevent 5 million people from leaving the workforce due to health issues.
Improving health equity isn't just an ethical imperative; it could be a financial one, according to a new report from Deloitte showing that health equity improvements could add $2.8 trillion to the U.S. gross domestic product by 2040.
The report also indicated that a boost in health equity could yield an estimated $763 billion in corporate profits for U.S.-based businesses and prevent 5 million people from leaving the workforce due to premature death or severe disability.
Health equity is a huge, costly problem in the U.S.
In one June 2023 report from The Leapfrog Group and the Urban Institute, researchers found that health disparities are steep even at the nation's top-rated hospitals. A separate report from the Commonwealth Fund indicated that the U.S. has the worst geographic health disparities in the developed world.
All said, health inequities cost the U.S. $451 billion, according to a report from the National Institutes of Health. That number is mostly driven by the cost of disparities in premature deaths, as well as the cost of lost work productivity.
A separate Deloitte report showed that direct medical costs linked to health inequities total $320 billion for the healthcare system. By 2040, this number could be $1 trillion if health disparities remain unaddressed, Deloitte previously estimated.
"Public and private organizations could gain from the economic growth and have a direct role to play by making health equity a strategic priority in their workforce resources and operations, products and services, community engagement, and cross-sector collaborations," the Deloitte researchers argued. "Sectors from agriculture, manufacturing, retail, technology, to transportation and many more could reap the commensurate economic benefits that come from a healthier population and workforce."
Health equity improvement can improve U.S. corporations
Deloitte's projections show that addressing health equity would be a good multi-industry investment. As noted above, the U.S. GDP could grow to $2.8 trillion, which is 9.5% higher than expected if health equity remained unaddressed. The $763 billion estimated corporate profits are 9.9% higher than expected if health equity remained unaddressed.
Said otherwise, the U.S. economy and corporate profits would actually be better if there was a cross-sector business effort to address health equity.
These figures are, in part, driven by an expected increase in workforce productivity, the Deloitte researchers explained.
"Healthy employees are more likely to show up for work consistently and perform better," the report authors wrote. "For businesses, that tends to mean increased productivity and reduced costs associated with absenteeism and health care needs."
Considering that 80% of health is affected by social determinants of health, businesses need to participate in the nation's push to improve health equity.
Business strategies to improve health equity
First, businesses can examine their own health benefits packages, the needs of their employee populations and the health inequities that may affect their employees. From there, businesses can alter their benefits packages appropriately to protect against and ideally mitigate existing inequities. Additionally, workplace wellness programs should be tailored to the health needs of a given business's employee population.
Businesses must also look outside their employee population and toward the products and services they sell. By better understanding the SDOH that affect their target audiences, businesses can tailor their products.
For example, leveraging data about the food and nutrition insecurity affecting the population a grocer serves could help the grocer better design its product, pricing, access and messaging. This could help close food insecurity gaps, furthering the cause of health equity.
From there, businesses can identify key community partners to both help inform business practices and scale impact. Understanding specific community needs by connecting with community leaders can help organizations support public and community health.
Finally, businesses should leverage cross-sector partnerships to build on resources and scale. These types of collaboratives can help businesses enhance economic value and improve health equity, Deloitte said.
"In an era in which business growth, talent retention, and productivity are top concerns for many C-suites, health equity has emerged as an influential driver of all of the above, according to our research," the report authors concluded. "Whether focusing internally or externally, within health care or across various sectors, advancing health equity is a business imperative and could help foster a more prosperous society."
Sara Heath has covered news related to patient engagement and health equity since 2015.
