Health and Productivity

NHS Commissioning

Theory: The healthier we are the more productive we will be; but increased productivity does not necessarily entail increased health.

Assumptions:
1. Health = quality of life x life expectancy
2. Clinical commissioning is based on the value of an average unit of health.
3. Human capital = intellectual capital + social capital + material assets.
4. Productivity (GDP) is an estimate of the value of an average unit of human capital.
5. Like health, the value of your human capital depreciates over time.
6. Like health, the rate of depreciation is faster the lower the value of your human capital.
7. Like health, your past productivity is the best predictor of your future productivity.
8. Like health, any over production in the system causes a devaluation of your human capital.

Therefore, Clinical Commissioning based on productivity can only work if the minority get healthier and richer while the majority get more sick and less well off.