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Deloitte: Health equity top priority but faces headwinds

Deloitte's latest report shows that health equity remains a top priority for executives, but efforts are stymied by organizational and regulatory challenges.

Sara Heath
By
Published: 28 Jan 2025

Healthcare and life sciences executives' focus on health equity doesn't match their organizations' overall investment in the area, with a new report from Deloitte showing a need for better progress reporting and measurement to move the needle on health equity.

Indeed, healthcare and life sciences leaders set far greater priority on health equity than their organizational investment might let on. While 75% of life sciences executives and 65% of healthcare executives said they expect an increased focus on health equity moving into 2025, the report detailed key headwinds that limit progress.

Health and life sciences executives should work to align their health equity priorities with operational processes, the Deloitte report authors said.

After all, there's a serious economic and business case for building better health equity. Right now, the consulting firm pegs the cost of health inequities at around $320 billion in excess healthcare spending; by 2040, Deloitte says that number could grow to $1 trillion.

Conversely, addressing health inequities could add $2.8 trillion to the U.S. gross domestic product and boost corporate profits by $763 billion.

"For life sciences companies, health equity initiatives help ensure that products are accessible, affordable, and meet the needs of all who can benefit from them. For health care organizations, health equity involves providing people with the health care services or medications they need, when they need them," Deloitte explained.

"While the specific business cases might differ by stakeholder, the overall benefits to health care consumers are aligned."

To that end, healthcare and life sciences executives do expect their organizations' health equity efforts to move forward full steam ahead. Around 90% of executives said they expect their companies to either increase or maintain last year's investments in health equity.

But challenges still lay ahead, the report noted, as organizations exclude health equity leaders from overall strategic planning and face headwinds with a new presidential administration skeptical of diversity, equity and inclusion (DEI) programming.

Health, life sciences executive retool health equity programming

Despite a commitment to ending health inequities, nearly half of health (48%) and life sciences (43%) leaders say doing so is an uphill battle. That's likely because organizations aren't tapping their health equity experts when doing overall strategic, financial and operational planning.

Currently, only 34% of health equity leaders say they are highly involved in organizational strategy, and only 24% are involved in product design.

"Health equity leaders often operate either independently or as part of a small team, which can limit their influence on organizational decisions. In some sectors, the role of the health equity leader is more externally focused, while internal activities might be managed by workforce or human resources leaders."

Deloitte indicated that integrating health equity leaders into overall strategic decision-making is a good first step in integrating equity into company culture and product design.

However, there's room to grow in other areas, as well. For example, 40% of life sciences and healthcare executives report challenges in tracking the progress of initiatives designed to reduce health disparities.

Lack of progress reporting limits health equity leaders tasked with proving return on investment for health equity programming, Deloitte noted. Currently, 32% of health equity leaders said they are either not measuring or are unaware of the impact their health equity programs have on the organization's bottom line.

Deloitte recommends organizations zero in on the four domains of action: the organization (measurement and evaluation), its offerings (data and outcomes), its community (external initiatives) and its ecosystem (collaboration and sustainability of programs).

Some health and life sciences companies are already working on this approach.

Around half (56%) of health equity leaders said they're prioritizing research, evaluation and measurement strategies, while another 56% said they're working to improve the quality of their org's health equity data. Meanwhile, 52% are focusing on community programs to address social determinants of health (SDOH), and 70% are planning to collaborate with other stakeholders to boost health equity efforts.

As organizations forge ahead with health equity programming, Deloitte encourages organizations to ask themselves the following questions:

  • How is equity considered when looking at the socioeconomic and environmental needs and challenges of the community?
  • How do we invest in SDOH within communities?
  • How can we shift our narrative to stress the importance of health equity?
  • How can we advance public policies and advocate to improve health equity?
  • How can we hold our partners accountable for promoting health equity?
  • How do we create sustainability of programs?

Navigating uncertain regulatory landscapes

The report authors also predicted headwinds with the new administration.

"The new administration and Congress could introduce new complexities for health equity initiatives through legislation and regulations," they wrote. "However, life sciences and health care organizations that are dedicated to improving health outcomes for all, especially historically vulnerable populations and communities, might be well-positioned to achieve their revenue and growth objectives this year and in the years to come."

For example, there is a lack of clarity around the enhanced premium assistance tax credits, which help people buy health insurance through the ACA marketplaces. With these enhanced credits slated to expire at the end of 2025, Deloitte said it could make for a murky future for the insured rate. If the enhanced credits are not extended, there could be higher Medicaid enrollment and overall higher uninsured rates.

"State and local activity is likely to continue to be important in driving and implementing health policy," Deloitte advised. "Health equity leaders should track not only federal activity, but also local and state initiatives."

Organizations should also monitor presidential appointees, evaluate legislative control and how it could affect health policy, and monitor regulatory and compliance strategies at all levels of government.

Health equity programming is maintaining momentum in the healthcare executive suite. A continued focus on growth, progress reporting and an uncertain regulatory future will be key to prioritizing health equity moving forward.

"Addressing health inequities is a moral and economic imperative and can be addressed using business solutions to advance growth and meet mission and purpose goals for life sciences and health care organizations," the Deloitte authors concluded.

"By prioritizing equitable access for everyone to high-quality, affordable health services, therapeutics, diagnostics, and medical devices, organizations might be able to enhance their financial performance while helping to make care more accessible and equitable."

Sara Heath has covered news related to patient engagement and health equity since 2015.

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