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Brad Bollinger: Study finds high return on health care prevention efforts

The saying goes that an ounce of prevention is worth a pound of cure. For health care, that can be translated into an investment of $1 in prevention could yield $5.60 in savings.

That’s according to a recently released study by the Washington, D.C.-based Trust for America’s Health, a nonprofit that focuses on disease prevention.

The study concluded that an investment of $10 per person per year in “proven community-based programs to increase physical activity, improve nutrition and prevent smoking and other tobacco use could save the country more than $16 billion annually within five years” – or $5.60 for every $1 spent.

For California specifically, the trust estimated a return on state health spending of 4.8-to-1, a savings of $1.7 billion in five years.

The study provides a benchmark for what Sonoma County’s emerging Health Action campaign could achieve.

Health Action’s 2020 goals are much the same – better nutrition, more exercise and a primary care or a “medical home” for all residents. One could easily imagine smoking cessation efforts as a part of the campaign.

For employers who may be asking what the benefits to them would be of investing in a community-wide, long-term prevention program, the study estimates some enticing savings for employees and insurers.

“Private insurers and individuals (through reductions of out-of-pocket costs) could see the biggest savings, with nearly $2 billion annually in the first one to two years, more than $9 billion annually within five years and more than $10 billion annually in 10 to 20 years,” the study concludes.

More than 90 million Americans live with chronic conditions such as diabetes and heart disease. Overall, chronic diseases account for seven out of 10 deaths, the majority of which are preventable.

“America continues to accept that people will inevitably become sick,” the Trust said. “Rather than concentrating primarily on treatment, we need to prevent illnesses in the first place.”

Many companies are already invested in improved employee health and prevention programs. What is becoming increasingly clear is that it pays significant returns both financially and in quality of life.

***

An aside: Barrie Graham surprised even those closest to him with his resignation last month as chief executive officer at Exchange Bank.

But anyone who has seen him recently can’t help but notice he looks rested and fit, having taken the time to return to his distance-running regimen.

***

Last word: For those who have been busily searching for evidence of a national recession, it was another bad week.

On Friday, the Commerce Department reported that second-quarter growth in gross domestic product – the measure of all goods and services produced – increased not 1.9 percent as previously reported, but a respectable 3.3 percent.

The day before, Commerce reported orders for big-ticket manufactured goods jumped 1.3 percent, reflecting strong exports and orders for capital equipment.

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Brad Bollinger is editor in chief and associate publisher of the Business

Journal. He can be reached at bbollinger@northbaybusinessjournal.com or 707-521-4251.