Why are Health and Health Care
Important to Economic Development?

Health care services is the fastest growing industry in practically every local economy across America. This is also true for many local economies in other countries. The demand for skilled health care workers and professionals is beyond the ability of most local labor markets to satisfy. Nursing shortages exist in most communities today, even with stepped up education and training efforts by nursing schools and hospitals.

Health is the top personal concern to most people, even beyond their jobs. And yes, paying the bill for health care is a major concern for employers and individuals in all age groups.

So, what is wrong with this picture? Very simply, we have not articulated the "value" and importance of health and health care to our economy. We have too many separate thoughts on this issue and we need an integrated picture of this connection.

That's why I want to share an interesting article written by Steward Ngandu, a Masters in Economics student at the University of Zimbabwe, who says: "The link between health and economic growth can also be illustrated as follows: healthy workers are more productive than sick workers. Since labour is a direct input in the production process, falls in the quality of labour will lead to decreases in the output. This is assuming that all other inputs are constant. Now if this output is aggregated across all firms in the country the result is the gross aggregate output of the nation which in economics is called Gross Domestic Product and the growth in this measure of national output is what is referred to as economic growth,will decrease." Go here to read more of what the author has to say.

We are living longer. My article a couple weeks ago discussed the implications of the global aging trend. Health care works. People are living longer, and if other aspects of quality of life are in place, they are living happier and more fulfilling lives--even amidst all the turmoil and uncertainty that has engulfed the world at this time.

What's the hottest industry across the world from an economic development? It's the biosciences, which is a close relative to health care.

As I look into the future, the "market for health" will continue to be of great importance. Holistic medicine, "wellness," gene therapy, nano-medicine and many new things will grow in importance. The Internet will play a much greater role in helping people to "manage" their health, which is a growing reality for all of us. Whether you know it or not, you are a "health care manager."

Somehow we must solve the problem of how we pay for health care. Partisan ideas abound, ranging from the government taking over control of the health system to the accelerated "marketization" of health care. Quality care is not cheap, but who wants anything less than world-class care when you are dying?

I urge the economic development community to put some brainpower into this issue. Health and health care are vitally important to our economic well-being, or as some would say our "economic health." Step up to the plate with some new ideas.

To prime the pump, read this paper by Gerald Doekson and Thomas Harris entitled "Relationship of Health Care to Economic Development." Get it here. Here's another good one by the Conference Board of Canada. Go here.