From cost centre to growth engine
Aging populations threaten fiscal balance, but prevention and precision care can turn marginal costs into productivity gains. The dividend arises when health systems reduce avoidable admissions and employers keep older workers productive with targeted benefits and flexible roles.
| Lever | Evidence of benefit | Business model |
|---|---|---|
| Preventive screenings, GLP-1 and cardio-renal protocols | 10–20% fewer costly events | Value-based benefits; insurer incentives |
| Remote monitoring, hospital-at-home | Shorter stays; lower readmissions | Device + care bundles; shared savings |
| Cognitive & mobility programs | Reduced disability claims; longer tenure | Employer wellness tied to KPI bonuses |
| Longevity finance products | Annuities, pooled risk, LDI | Pension solvency, retiree income stability |
The productization of prevention
Canada can lead in bundling devices, coaching, and pharmacy protocols with financing. Think mortgage-style health products: fixed monthly payments for prevention kits and digital check-ins, underpinned by outcomes-based contracts with payers and employers.
What leaders can do
- Build prevention P&Ls: treat avoided claims and absenteeism as revenue-equivalents.
- Offer longevity-linked benefits: screenings, GLP-1 eligibility, cardiac checks, musculoskeletal support.
- Stand up hospital-at-home pilots with regional providers; target specific DRGs.
- In finance, expand annuity and longevity-swap offerings; integrate liability-driven investment.
- Redesign workplaces for 60–75: ergonomics, mentorship, micro-scheduling.
Arcus Insight: The cheapest healthcare is the care you never need. The firms that monetize prevention and extend productive years will enjoy a structural cost and talent advantage.