Well-being as ROI

Helping people stay healthier will have a big return on US health care investment.

Research by Deloitte has found that the focus on well-being in US health care could yield significant savings by 2040. It requires treating the whole patient: from their physical and mental health to their social, emotional, equitable, spiritual, and even financial health.

The goal is to lower the incidence of disease and decrease the need for medical interventions, which will have obvious benefits at the societal level. And this tech-enabled, prevention-focused, consumer-empowered health care model also could yield significant savings for the US economy. Communicators will be responsible for sharing this widely to stakeholders.

Deloitte’s health care actuaries collaborated with leaders from its health sector to develop models projecting the potential impact of care based on well-being. They found that by 2040, US health care spending could reach $8.3 trillion — $3.5 trillion lower than projections based on numbers from the Office of the Actuary at the Centers for Medicare & Medicaid Services focused on traditional health care.

Health care spending will likely see a marked decline by 2040. (Numbers in parentheses are health spending as a percent of GDP). Source: Deloitte analysis based on national health spending from the Office of the Actuary at the Centers for Medicare & Medicaid Services.

It is estimated that spending on well-being–based care will constitute 18.4% of the US gross domestic product in 2040. This would be seven percentage points lower than if current health care spending trends were to continue. This will only happen if enough organizations, individuals, and health care professionals understand the opportunity and embrace the necessary cultural shift.

The $3.5 trillion difference between a model based on well-being care versus traditional care could be considered a “well-being dividend”: the return on investment for tools, systems, or protocols that help consumers take an active role in their health and well-being. Communicators will have important role in helping consumers understand this and change their behavior.

Historically, the US health care system has been geared toward treatment. For every $100 spent on health care, about $80 currently is spent on the diagnosis and treatment of patients after they become sick. By 2040, Deloitte expects spending on well-being to account for two-thirds of total health expenditures.

By 2040, two-thirds of health care spending will likely be on well-being and early detection of diseases. Source: Deloitte analysis based on national health spending from the Office of the Actuary at the Centers for Medicare & Medicaid Services.

While this projection runs counter to historic trends, Deloitte believes the US health care system’s transformation is already underway. Investments will increase in data and algorithms that help generate health and well-being insights. This will include devices and apps that nudge behavior promoting well-being, which will be an extension of the greater communication program. It will also include initiatives that address the drivers of health and help address disparities in health outcomes, such as housing, transport, and diet.