Investing in Healthcare: breaking down

the silos

Brussels, 16 October 2013

With the endorsement of the Lithuanian Presidency of the Council of the EU

In partnership with the European Economic and Social Committee

Co-chaired by Antonyia Parvanova MEP & Gianni Pittella, Vice-President, EP

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Investing in Healthcare: breaking down the silos

Prof Stephen Bevan Founding Co-President, Fit for Work Europe

Director, Centre for Workforce Effectiveness – The Work Foundation

“The case for a cross-governmental budgeting

(the case of RMDs)”

Return on early intervention

The Case for Cross-Governmental Budgeting

The Case of RMDs

Stephen Bevan Director, Centre for Workforce Effectiveness, The Work Foundation (UK)

Honorary Professor, Lancaster University, UK

Founding President, Fit for Work Europe Coalition

A Reminder – MSDs in the EU

Major cause of

incapacity in the

workforce

Over 40m EU

workers have

MSDs

MSDs – cause

49% of absence

from work

MSDs cost €240

bn each year –

2% of GDP

Some workplace

risks for MSDs

growing

Pre-existing MSDs

& psycho-social

factors

understated

Major & growing impact on

productivity, labour market

participation & social

inclusion as the workforce

ages & health spending is

scrutinised

Sustainability?

• Across the EU, only 3% of health spending is devoted to Prevention – with over 70% of spending now on chronic illness, this is unsustainable

• Early intervention for people of working age with chronic conditions such as MSDs can be a form of prevention which ensures patients pay rather than consume tax

• However, early diagnosis & treatment is still too slow

• Too many clinicians fail to consider Work as a clinical outcome

• Social Security systems are poor at supporting people with chronic conditions to remain in work

• Employers need to play a part too.

MSDs & Lost Productivity

UK 300k people move from

long-term absence to permanent disability benefits – 822 a day:

13% have MSDs 35m working days lost to

MSDs each year

If early interventions can reduce temporary work

disability by 25% the

equivalent of an extra 640k EU workers would be

available for work each day If TWD was reduced by 39% this figure rises to 1 million additional workers each day

A Win:Win for Policymakers? Healthcare interventions which help people remain in work reduce welfare payments,

avoid lost tax revenues & avoid social exclusion

BUT we still focus on health as a COST

MSDs & Work Ability - UK

• National Audit Office has calculated that improved clinical outcomes for people with rheumatoid arthritis could be achieved if early intervention was increased by 10 per cent. However, these gains would be need to be achieved by first increasing expenditure in the health care system (NHS) by £11 million over 5 years.

• A productivity ‘payoff’ – estimated to be £31million over 5 years from reduced sick leave and lower unemployment – would accrue to individuals, employers and to the Department of Work and Pensions.

• This elegant and apparently persuasive economic argument was put to, and accepted by the Public Accounts Committee – an influential group of MPs in the House of Commons. Despite wide support the political argument has yet to be won and no action based on this NAO example has yet been taken.

Invest to Save

• By 2030 up to 45% of the EU workforce will have a long-term or chronic health condition which will affect their productivity

• Are we just going to wait for them all to get ill so we can then make them better or keep them functional, at massive cost?

• Joined-up, coordinated, cross-government action with a preventative focus and an ‘Investment’ mind-set is desperately needed

• ‘Every Minister is a Health Minister’

Thank you for attending the Fit for Work

Summit 2013.

Follow us on Twitter @FfWEurope

Check our website www.fitforworkeurope.eu

Take a look at our blog www.blog.fitforworkeurope.eu