Prevention Healthcare Economics

Calley proposes redirecting healthcare spending from treating chronic conditions to prevention by changing incentive structures and focusing on root causes. The opportunity lies in shifting the $4.5 trillion healthcare industry toward preventive measures and addressing fundamental health issues.

Key Points:

• Current Market Problem:

  • Healthcare industry profits from sick people, not prevention
  • 95% of healthcare dollars go to managing existing disease
  • System incentivizes treating symptoms rather than addressing root causes
  • Healthcare costs projected to reach 40% of GDP in next 20 years

• Business Opportunity:

  • Redirect healthcare spending toward prevention
  • Create incentives for healthy behaviors
  • Pay lower-income people to exercise
  • Fix food system incentives
  • Build companies that profit from making people healthy rather than managing illness

• Market Validation:

  • Japan spends 2x more per capita on food than US
  • Japan incorporates food into healthcare budget
  • European countries have stricter food regulations
  • Other countries successfully implement prevention-focused systems

• Economic Potential:

  • Current $4.5 trillion healthcare industry
  • Opportunity to redirect significant portion to preventive measures
  • Unsustainable current trajectory creates urgency for change
  • Growing market as current system becomes increasingly expensive

• Implementation Strategy:

  • Change incentive structures
  • Focus on root causes rather than symptoms
  • Create businesses that profit from prevention
  • Build systems that reward healthy outcomes