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Why Companies Need to Tackle the Rising Costs of Chronic Disease

With chronic health issues increasing, Dr. Shaan Chugh says companies must act now to support employee well-being and control rising costs
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{Photography: iStock}
By Dr. Shaan Chugh
Aug 22, 2025

Companies are facing a quiet but costly healthcare crisis: a surge of chronic diseases among employees. Nearly half of all Canadians–46 per cent–live with at least one chronic disease such as cancer, diabetes, stroke, arthritis, asthma, or heart disease. These long-term illnesses last a year or more, require ongoing medical care, and limit daily functioning. The impact is profound–chronic diseases not only reduces quality of life but also hampers work performance, costing employers more than $120 billion in lost productivity each year. 

Chronic disease prevalence is projected to nearly double between 2020 and 2040, driven by aging populations, poor diet, stress, smoking, inactivity, obesity, and social inequalities. These forces are reshaping the workforce. Younger employees are being diagnosed earlier, while older workers may remain in the workforce longer for both financial security and cognitive health. In the face of this growing epidemic, Canadian organizations can no longer afford to sit still.

Employer programs focused on reducing chronic disease risk have emerged as an effective response to this challenge. These programs allow employers to proactively support their workforce, especially when access to care is limited by systemic barriers or low awareness of preventive health. By implementing these programs, companies showcase their commitment to employee well-being and strengthen their reputation as supportive employers.

Working across both the public and private sectors of healthcare, I’ve seen how chronic conditions affect workforce outcomes. As an internal medicine specialist at one of Ontario’s busiest hospitals, I see the toll of chronic disease and the daily pressures it puts on patients and providers. I am also a lead for Cleveland Clinic Canada’s Global Corporate Advisory Services program, helping organizations develop strategies to support workforce well-being. Through this program, I serve as chief medical director at Purolator, advising on health policy and employee wellness for one of Canada’s largest logistics companies. This broad exposure gives me a unique perspective on bridging the gap between clinical realities and corporate responsibility.

If employers don’t address chronic disease in their workforce now, they’ll face rising costs, higher absenteeism, and lower productivity. But targeted prevention and disease management strategies can help mitigate these risks–supporting employee well-being and long-term organizational success.

Create company-specific plans

One-size-fits-all approaches don’t work for chronic disease prevention. Each organization has unique workforce demographics, education levels, and job risks. To create solid plans, companies must engage employees at all levels—from the shop floor to the C-suite—to understand their specific health needs. Demographic factors like culture, age, and race help identify key health risks and shape targeted, cost-efficient strategies. For example, companies with younger female employees may focus on cervical cancer and hypertension, while those with many men aged 50 to 65 may prioritize colon and prostate cancer education. In workplaces with large South Asian populations, diabetes prevention should be a focus due to its higher prevalence.

Employers can further review health and wellness claims to identify common conditions and gaps in care. They can also appoint doctors to facilitate discussions, uncover issues, and implement targeted strategies. For example, at Cleveland Clinic Canada, our corporate medical directors work with multidisciplinary teams of clinicians, researchers, and business consultants to develop customized, prevention-focused health and wellness programs that reflect each company’s unique profile. 

 Prioritize early detection

Early detection of diseases like cancer and diabetes can improve employees’ quality of life and reduce the need for aggressive treatments with significant side effects. It also benefits organizations by lowering costly medical interventions and minimizing unplanned absences.

Our clients at Cleveland Clinic Canada across industries like logistics, construction, banking, nuclear power, insurance, and telecommunications, have adopted various approaches to employee health and early disease detection. For example, Purolator offers on-site biometric clinics where employees can check their blood pressure and receive rapid finger-prick testing for diabetes diagnosis and LDL (or bad) cholesterol–a heart disease risk factor. Catching these issues early enables timely intervention and limits complications.

Other companies also provide annual blood tests or encourage employees to receive them through their doctors–often including the Hemoglobin A1C test, which monitors and diagnoses diabetes. This proactive approach allows employers to educate employees about available health benefits, intervene early, and support the prevention—or even reversal—of diabetes progression.

Empower employees with tools and tech

Companies should actively engage employees and provide targeted benefits to manage chronic disease. For example, Hatch, a global engineering firm and Cleveland Clinic Canada client, uses wearable technology to show employees how lifestyle affects performance and disease risk. One initiative provides continuous glucose monitors to help those with diabetes or prediabetes track blood sugar spikes, identify food triggers, and better manage—or prevent—disease progression. With the right diet, exercise, and medication, consistent blood sugar control can greatly improve health outcomes.

Similarly, mobile apps let employees photograph meals to receive nutritional and calorie information, helping them make healthier choices and lose weight. Our clients report significant benefits from these and other chronic disease interventions. It’s no surprise—engaged employees make more informed decisions and adopt healthier behaviours that lead to better outcomes and lower costs.

Engage employers on their own terms

Health awareness strategies should reflect a company’s structure and operations. We work with clients whose front-line employees often lack email access, don’t work 9-to-5 hours, and aren’t based in office towers. To reach them, we–as doctors–go where they are: into lunchrooms, onto work sites, and even to 6 A.M. shift changes. These face-to-face interactions build trust and engage employees in meaningful conversations about health. 

These engagements take many forms–delivering  talks on mental health at construction sites, distributing pulse surveys, or simply listening to employees. While every company is unique, all must meet their employees where they are to ensure care reaches everyone. Raising awareness about chronic disease–through doctor-led townhalls, lunch-and-learns, and integrating health discussions into training and performance reviews—can be lifesaving. The more accessible and relevant the information, the more likely employees are to engage and act.

Other proven strategies include helping employees find primary care doctors, using digital nudges from apps to support medication adherence, and analyzing benefit claims to make use of wellness programs. The key is knowing which tools will work best for the given workforce.

Get executive buy-in early

In today’s climate of limited resources and mounting pressures—from tariffs to rapid technological change—Canadian companies may find it difficult to prioritize investments in disease detection and prevention. These competing demands can make it even more challenging to secure buy-in from the C-suite, especially when immediate business outcomes are top of mind.

However, demonstrating early return on investment can help shift the conversation. Tangible results build momentum and reinforce the long-term value of proactive efforts in chronic disease education, early detection, and targeted benefits.

Related: The Case for Protecting Virtual Care

Closing the gap

Chronic diseases are rising in Canada, but resources for comprehensive care remain limited. For example, diabetes is one of the fastest-growing chronic diseases in the country, but the healthcare system often struggles to keep up. Effective management typically requires a coordinated team, including a dietitian, diabetes educator, family doctor, and endocrinologist. 

But forward-thinking companies are stepping in to help close that gap. By integrating innovative models of chronic disease awareness, prevention, and management in the workplace, they help employees improve their health, boost productivity, and enhance morale, while also reducing operational, financial, and cultural risks. When companies improve the health of their workforce, everyone benefits.

Dr. Shaan Chugh
Dr. Shaan Chugh
Dr. Shaan Chugh, MD FRCPC MSc, is a practicing Internal Medicine Specialist, the interim physician lead for Global Corporate Advisory Services at Cleveland Clinic Canada, and Chief Medical Director at Purolator.

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