Prevention Valuation: Fund Health, Not Just Savings

By Rene Pretorius

May 9, 2025

Prevention promises healthier lives, but how should we value it? Prevention valuation is critical for funding in value-based care systems. The proverb “prevention is better than cure” underscores prevention’s edge: stopping diseases cuts suffering and costs versus treating illness. Prevention delivers immediate health gains and long-term savings, yet competes with treatment’s urgent budget and short-term benefit evidence demands. A systems perspective shows short-term cost focus skewing resources toward treatment. Misjudging prevention’s value risks underfunding effective strategies or overinvesting in ineffective ones.

Systemic Barriers to Prevention

Pryor and Volpp (2018) urge a paradigm shift for prevention, citing the Diabetes Prevention Program’s cost-effectiveness and smoking cessation incentives. Adoption lags due to barriers: insurers favor short-term savings amid member turnover; providers prefer prescriptions over behavioral interventions; prevention faces stricter cost-effectiveness scrutiny than treatments (e.g., Medicare hesitates on prevention but covers costly therapies like Avastin). Equal evaluation standards, digital platforms (e.g., online DPP), and payment reforms could scale prevention and align incentives.

Challenging Cost-Saving Myths

Baicker and Chandra (2025) refute the myth that prevention must save money, advocating health-focused valuation, like treatments. Most prevention, except vaccinations, fails to cut costs due to high costs or large numbers needed to treat (NNT). A $400-per-month wellness program with 1% heart failure risk reduction costs $960,000 to avert a $22,000 case (NNT=100). Trials show workplace wellness lacks benefits. Low costs, high averted expenses, and low NNT define cost-saving prevention. Cost-effectiveness should guide funding.

A Unified Valuation Approach

Both perspectives agree: judge prevention like treatments—by health benefits per dollar spent. Pryor et al.’s reforms, like targeting high-risk groups, could lower NNTs, addressing Baicker et al.’s cost-effectiveness concerns. Baicker et al.’s trial-based metrics ensure Pryor et al.’s solutions are evidence-backed. Short-term priorities and cost-saving myths misallocate budgets, favoring cure. Consistent standards and aligned incentives unlock prevention’s potential.

Actionable Steps Forward

Valuing prevention like treatments ensures equitable decisions. Policymakers should mandate uniform cost-effectiveness standards across interventions. Payers must adopt value-based payments to fund proven prevention, like vaccinations or DPP. Evidence generators should conduct rigorous trials to validate health benefits for market access. Health professionals can integrate digital tools, such as online DPP, into workflows to scale delivery, driving sustainable health gains.

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