New Business School Head of Health talks sugar tax and the future of healthcare

Professor Franco Sassi, a world-leading health economist is Head of the Health Group and will oversee a new research centre that opens next year.

Before coming to Imperial, Professor Sassi was a Senior Health Economist at the Organisation for Economic Co-operation and Development (OECD) in Paris, where he led the Organisation’s Public Health Programme.

His work focuses on assessing the impact of public policies designed to tackle  major chronic diseases and the lifestyle choices that cause them such as poor nutrition, physical inactivity, alcohol and tobacco use.

Professor Sassi spoke to Laura Singleton about his vision for advancing health research at the Business School.

You’ve recently joined the Business School’s Health Economics, Policy and Management Group. What does the group work on?

Our work covers the economic dimension of global health challenges. This includes the efficiency and sustainability of healthcare systems around the world as well as policies that can improve people's health by changing what they eat and drink, the air they breathe and their social and economic conditions.

Our research covers the governance, financing, resource allocation and delivery of health services and informs policy-makers at global, national and local levels. It covers areas such as the role of innovation and new technology in improving the quality of health services and how this needs to adapt to a rapidly changing environment. We look at how health policies affect people’s wellbeing and how competition and regulation of hospitals affects the quality of patient care.

Which areas of health research do you see as a priority for the Business School, in line with the new health research centre?

Health is a very emotive subject, but it goes beyond preventing and curing diseases and illnesses. The quality of care people receive from the NHS is a big concern for a lot of people. As ninety percent of care actually happens outside hospitals, we need to focus more on how people are affected by the issues surrounding primary, community and social care. The new research centre, which opens next year, will build on our existing expertise in measuring the economic impact of health, combined with a strong focus on the innovations needed to address the big global health challenges such as ageing and rising chronic disease.

We want to move the focus away from ‘healthcare’ to ‘health’ in its broadest sense, to emphasise the impact of health on the economy and business as well as the environmental factors that affect people’s wellbeing. We are also looking to bring a health dimension to some of our other research areas in the Business School, such as climate change, and to build on our relationships with other health researchers across Imperial.

What is the economic case for promoting public health?

Good health is essential for people’s wellbeing, but a healthy workforce can also increase productivity and boosts the economy. Ensuring consumers get good value for money from their health services is important, but from an economic viewpoint it’s better for countries to invest in public health services, rather than just investing in drugs and healthcare products. Cuts in public funding can have serious consequences on the long-term future of the wellbeing and productivity of a nation, which is why the financing of healthcare is so important.

Would introducing a sugar tax help the UK government solve the obesity crisis?

I can see the value of introducing a sugar tax in Britain, where obesity is becoming a serious problem, as it would provide an incentive to people to change their unhealthy habits and for businesses to take a key role in tackling the problem.

However, I don’t think introducing a tax alone, will solve the problem. I think the UK government could do more to send out positive messages about the value of healthy lifestyles so that people are more motivated to change their habits in the long-term. Consumers also need clearer factual information on the salt, sugar and fat content in their products, as currently a lot of people are being misled by the information they see on labels at the supermarket. We also need stronger regulation of the messages put out by advertisers, particularly to children.

What measures need to be introduced to tackle chronic diseases and illnesses caused by unhealthy lifestyles (smoking, alcohol consumption, lack of exercise etc)?

Governments and businesses need to work more closely together to come up with positive solutions that will motivate people to change their habits in the long-term. We also need to make the delivery of public healthcare more efficient and give consumers more power over their health. The UK also needs to invest more in healthcare innovation.

What types of technology could help improve public health services in the UK and around the world?

People need information and incentives to make the right lifestyle choices and to make the most of the healthcare services available to them. For instance, in the past few years, we’ve seen the emergence of “EHealth” solutions – such as healthcare information provided to individuals via the internet or by mobile phones and apps.

EHealth empowers people to take control over their own health, by helping them track the progression of their illnesses, provide health information and reminders for when to take medication. However, as the technology is still new, it hasn’t yet been proven to help people on a wider scale and it still only appeals to consumers who are already conscious about managing their health, rather than helping those who urgently need to improve their health but aren’t willing to make lifestyle changes.

Technology is valuable for delivering accurate information to consumers, but I don’t think it substitutes for face-to-face advice from a healthcare professional. Technology is also one of the biggest causes of physical inactivity, which is a prime cause of obesity and isn’t helped by people’s sedentary working lifestyles. I think the best solution is a combination of better public information, financial and non-financial incentives, more consumer choice and more action from businesses and governments to help people change their habits for the long-term.

The new health research centre will open at Imperial College Business School early next year, followed by a major conference on healthcare and business in March.

Healthcare is also covered by the Business School's executive education programmes, which you can read about on this website.