On Sept. 28, 2022, the White House held its first Conference on Hunger, Nutrition, and Health in over 50 years, marking an important milestone in addressing the connections between diet, health, and economic strength. Two years later a Food Is Medicine Policy Update conference was hosted by Validation Institute, Inc.  The conference reflected an increased understanding of how poor nutrition, and the resulting diet-related diseases contribute to the U.S. healthcare crisis, creating a ripple effect on economic productivity, healthcare spending, and global competitiveness. With its significant purchasing power and policy influence, the U.S. government has a unique opportunity to address nutrition-related issues that contribute to high healthcare costs — a drain on the economy that Warren Buffett has aptly called a “tapeworm.”

Despite spending more on healthcare than any other high-income country, the United States has the lowest life expectancy at birth, and the highest rates of multiple chronic diseases among wealthy nations. Buffett has highlighted the economic strain that high healthcare costs place on American businesses. Since 1960, healthcare spending as a share of GDP has surged from 5% to about 18%. This disparity means U.S. companies face a significantly higher financial burden compared to businesses in countries with lower healthcare costs, putting them at a global disadvantage.

The U.S. spends nearly 18% of GDP on healthcare, a figure vastly higher than the 10-12% average of other OECD countries. The difference between what the US spends, and what other nations in the Organization for Economic Co-operation and Development spend is money that could be invested in America without having to raise taxes or cut programs. This disparity suggests significant room for improvement. These high costs make American companies less competitive globally, reducing their ability to invest in innovation, wages, and growth, as they bear a heavier financial burden,

The economic impact extends beyond direct healthcare costs to lost productivity. Chronic illnesses linked to poor nutrition, such as obesity, diabetes, and cardiovascular diseases, contribute to an estimated $260 billion in lost productivity each year due to factors like absenteeism, disability, and reduced work performance. Addressing these health issues through better nutrition is essential to reducing these costs and enabling businesses to reallocate funds to critical areas like employee development and technology.

In response to these challenges, the federal government has been exploring “Food is Medicine” initiatives, which emphasize the role of nutrition in preventing and managing diet-related diseases. These programs integrate nutrition into healthcare by promoting access to healthy food as a form of medical treatment, prescribing food-based interventions to prevent or treat chronic conditions. For example, some healthcare providers now offer “produce prescriptions” that allow patients to purchase fruits and vegetables instead of relying solely on medications. This approach has shown promise in reducing disease severity, cutting healthcare costs, and improving patients’ overall quality of life. The Food is Medicine model represents a shift toward preventive healthcare, where nutrition plays a central role in maintaining health and reducing reliance on costly medical interventions.

The U.S. ranks among the highest for certain nutrition-related health issues, such as obesity and diabetes. The Global Nutrition Report shows that about 36.2% of American adults are categorized as obese — significantly higher than the global average — largely due to dietary factors like high consumption of processed and calorie-dense foods. If the U.S. were to improve its nutrition outcomes to align with other high-income countries, it could achieve substantial cost savings in healthcare. Here’s how enhanced nutrition could reduce healthcare spending and boost the economy:

Reduction in Chronic Disease Rates

Chronic diseases, driven largely by poor diets, account for about 90% of the $4.1 trillion spent annually on healthcare in the U.S. The CDC estimates that improving diet quality and reducing obesity and related conditions could significantly decrease the need for ongoing treatment, hospitalizations, and medications, resulting in billions of dollars in savings each year.

Lower Demand for Acute and Long-Term Care

Diet-related diseases like diabetes and cardiovascular disease increase the likelihood of acute events such as heart attacks and strokes, which require costly treatments and often result in long-term care needs. According to the American Heart Association, cardiovascular disease costs are projected to reach $749 billion by 2035 if current trends continue. Improved nutrition could mitigate these conditions, reducing the demand for both immediate and extended healthcare services.

Increased Workforce Productivity and Reduced Absenteeism

Healthier diets contribute to better physical and mental health, resulting in fewer sick days and increased productivity in the workplace. By reducing chronic conditions such as type 2 diabetes and metabolic syndrome, businesses could see fewer productivity losses, which indirectly benefits the economy and strengthens American competitiveness.

Reduced Government Healthcare Expenditure

With Medicare and Medicaid covering a large share of chronic disease treatment, improved nutrition would reduce financial strain on public health programs. This could lower the taxpayer burden and free up resources for other priorities or improve healthcare services without increasing overall spending.

Preventive Healthcare Cost Savings

Countries with better nutrition outcomes have shown that investing in preventive health yields long-term savings. For every dollar invested in public health initiatives targeting lifestyle diseases, the CDC estimates a return of $5-$10 in reduced healthcare costs. By shifting toward preventive strategies, the U.S. could lower per capita healthcare spending over time, making the system more sustainable and equitable.

In Finland, public health campaigns emphasizing dietary improvements successfully reduced heart disease rates, demonstrating the power of government-led initiatives to improve population health. Similarly, Singapore has incorporated nutritional programs into community health systems, often leveraging technology such as mHealth apps to support dietary compliance and monitor health outcomes. These efforts have improved health markers across populations, reduced healthcare spending, and fostered a culture of health consciousness that benefits both individuals and the broader economy.

Ed Gaskin is Executive Director of Greater Grove Hall Main Streets and founder of Sunday Celebrations.