Tag: Global Healthcare Exchange (GHX)

New Ways To Close the Health Equities Gap

Karen Conway

By Karen Conway, vice president of healthcare value, Global Healthcare Exchange (GHX).

The cost of healthcare disparities has been long and deeply felt by patients and their families, but it wasn’t until the high rates of COVID-19-related hospitalizations and deaths among persons of color made headline news that the broader societal impacts of health disparities became more widely known.  In response, health systems are prioritizing health equity and leveraging new tools and data to support their work.

At a physiological level, the presence of underlying chronic disease increases the risk presented by COVID-19. The incidence of chronic disease(s) is increasing among all Americans, but the prevalence is much higher among the poor, which includes a higher percentage of individuals of color compared to the overall White population.[1] Health inequities among communities of color are further exacerbated by structural and institutional racism, which experts say “harms health” because of negative factors in their physical, social, and economic environments and a propensity to develop maladaptive coping behaviors (e.g., smoking, alcohol, etc.)[2].

A Community-Level Issue

Increasing rates of chronic disease create a self-reinforcing cycle that threatens the well-being of entire communities (and the health systems that serve them). Individuals suffering from chronic disease have higher rates of absenteeism,[3] which limits their wealth building potential, the productivity of their employers and the tax base of their communities. This, in turn, increases poverty and the impact of the social determinants of health (SDOH) that contribute to higher rates of chronic disease. The combination of chronic disease (as an inflammatory condition) and the psychological stress of racism have been shown to cause physiological changes that raise the risk of contracting additional chronic diseases.[4]

Hospital performance is also tied to economic well-being. Research documents a correlation between the quantity and quality of local economic resources and the clinical performance of hospitals, which under value-based payment models, can also impact financial performance.[5]  With chronic disease responsible for nearly 90% of national health expenditures,[6] it’s continued rise threatens our national economy and the ability to fund needed healthcare for the poor and aging. In other words, this is not just a social issue; it is an economic imperative. A 2021 Institute for Healthcare Improvement (IHI) study found that 58% of healthcare executives ranked health equity as one of their organization’s top three priorities, up from 25% in 2019.

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Supply Chain Hits Home On Health Equity

Karen Conway

By Karen Conway, vice president of healthcare value, Global Healthcare Exchange (GHX).

The COVID-19 pandemic exposed the true costs, human and otherwise, of health disparities, as low income and minority populations suffered disproportionately from the virus. Blacks, Native Americans and Hispanics were 2% to 3.3% more likely to be hospitalized or die from the virus compared to non-Hispanic Whites, primarily because of a higher prevalence of underlying disease states (hypertension, obesity and Type II diabetes) caused by relative lack of access to the so-called social determinants of health: good paying jobs, healthy food, safe housing, and transportation, among others.

As with so many aspects of the pandemic, supply chain is front and center in the fight, which is playing out on their home turf, literally. Once again, supply chain is also getting noticed in the executive suite, as the boards of trustees for America’s hospitals prioritize health equity in preparation for taking on more risk for the populations they serve under value-based reimbursement programs. Here are few ways they are making a difference.

1. Bringing Diversity Home
Supply chain professionals have long sought to increase their spend with diverse suppliers, defined primarily as those that are women, minority, veteran, or LBGTQ-owned. That data is tracked and often used to support grant applications. More recently, transparency around that spend is being mandated. In California, for example, Assembly Bill 962 (AB 962) requires all hospitals meeting a certain threshold to report how much they spend with diverse suppliers each year.

But for many health systems, diversity is not enough. They want to make sure they are using their purchasing power to support the health and well-being of local communities where the patients they serve live. Spending in local communities has a multiplier effect. For example, investing in a local business supports job creation; in turn the wages for those employees generate local tax dollars and increase their ability to spend and generate wealth in their own communities.

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