A new Deloitte analysis reveals that addressing health inequities could add a staggering $2.8 trillion to the U.S. economy by 2040. This potential windfall underscores the urgent need for systemic changes to reduce disparities that disproportionately affect marginalized populations, particularly people of color, low-income individuals, and those living in rural areas.
The study highlights the significant economic burden of health disparities, which currently cost the U.S. economy approximately $320 billion annually. If left unaddressed, this figure could skyrocket to $1 trillion by 2040. These costs stem from various factors, including higher rates of chronic conditions, reduced workforce participation, and increased healthcare spending on preventable diseases.
For healthcare organizations, prioritizing health equity could yield substantial returns on investment. Providers and payers could see reductions in uncompensated care, fewer hospital readmissions, and improved patient outcomes – all contributing to lower healthcare costs.
Technology is poised to play a crucial role in reducing health disparities. Telehealth, which saw a surge in usage during the COVID-19 pandemic, has the potential to expand care access for those in remote or underserved areas. However, disparities in broadband access and digital literacy remain significant barriers.
David Rabinowitz, principal at Deloitte Consulting, emphasizes the importance of addressing biases in healthcare data. “If the data we use is based on underlying biases, then tools and solutions could exacerbate inequities,” he warns. Rabinowitz suggests that health IT and analytics can help address data gaps and provide more useful insights to tackle health equity issues.
As the healthcare industry grapples with these challenges, it’s clear that improving health equity is not just a moral imperative but a significant economic opportunity. The potential $2.8 trillion boost to GDP by 2040 serves as a powerful incentive for policymakers and healthcare leaders to take decisive action in addressing health disparities.
See “Improving health equity could add $2.8 trillion to GDP by 2040” (October 2, 2024)