A study says eliminating racial/ethnic health disparities would reduce healthcare costs by $230 billion and indirect costs of excess disease and mortality by more than $1 trillion over four years.
Despite the strong links between health and social conditions, inequities in the social determinants of health have traditionally been viewed as beyond the purview of healthcare. That sentiment is rapidly changing amid growing recognition among payers and providers that inequities in employment, housing, environment, transportation, and education limit the benefits of healthcare, drain resources, and make it challenging for healthcare organizations to operate efficiently. Making sure everyone has a fair and just opportunity to live the healthiest life possible would benefit society and the healthcare sector.
Studies find that low-income people and racial and ethnic minorities experience worse health because of inequitable social conditions. One study estimates that eliminating racial/ethnic health disparities would reduce healthcare costs by $230 billion and indirect costs of excess disease and mortality by more than $1 trillion over four years. Inequities in healthcare—such as lack of health insurance, unaffordable medical expenses, and structural racism in healthcare—create disparities in care and make the system more costly and less effective. Healthcare providers and healthcare systems must play a major role in advancing health equity to prevent needless suffering, premature deaths, and avoidable costs.
Initiatives described in the report include making healthcare institutions more equitable, improving the social conditions of individual patients, and improving social conditions in communities, for example: