Healthcare as an Investment, not a Cost

Authors

• Farid Baddache

  Former Managing Director, BSR

With the fervor around the U.S. health care debate rivaling that of the carbon tax debate in France, it's worth taking a look at lessons learned on this side of the Atlantic.

Today, public health is a major priority for the European Union, and as a result, health care and its broader umbrella of social protection systems (programs that address disability, unemployment, and old age) are highly developed. In fact, European countries spend on average 27 percent of GDP on social protection.

And these investments are made for good reason. Studies—both in the EU and globally—repeatedly show that investing in healthcare improves productivity. A recent study in Belgium showed that work-related stress could generate up to 9 million days of sick leave a year in that country alone. As such, companies with leading human resources practices are embedding wellness programs into their offerings.

However, there is still more to be done. All European countries are facing common challenges due to aging populations, rising inequality, changing labor markets, and challenges in financing health care due to increased costs. As a result, countries need to continue to adapt and build innovation into their systems.

There are two areas where business can play a constructive role in defining a new sustainable health care system:

First, define clear roles and duties in the way the public and private sectors accept and share responsibilities. The private sector cannot focus solely on highly profitable areas. Through innovative public-private partnership and new business models, quality and impactful health care can be delivered and secured at a reasonable cost.

Second, continue to innovate and improve public health in increasingly complex environments. Over the last few decades, threats to health (health security, communicable diseases, and climate change) and health determinants (lifestyle, socio-economic determinants, environment, and genetics) have all undergone significant changes. This rate of mutation shows no abatement. As a result, stakeholder engagement must break from traditional models and look to other fields and sectors to better predict and anticipate future needs.

Bottom line: health care and social protection deal with human dignity, productivity, and well being in society. As such, they need to be viewed as an investment, not a cost. The more all actors in the chain—policymakers, businesses, and consumers—are able to demonstrate collective intelligence, sense of citizenship, and a spirit for innovation, the more health care and social protection systems can be developed in a responsible and cost-effective way.