Why Public Health Makes Business Sense

In the increasing competition between cities, regions, and states for the highly desirable jobs and industries driving economic growth in these difficult times, community health has become a key ingredient in attracting employers.

2 minute read

December 12, 2012, 7:00 AM PST

By Jonathan Nettler @nettsj


We've recently heard about the dubious tax incentive arms race being undertaken to lure companies to locales throughout America. In the race to hand out more and more money, locales are missing out on an emerging ingredient in their "credit score": their community health index. "More and more companies, in their efforts to contain employee health-care costs, are making a community's obesity rate the most important factor in their business-location decisions, Dr. James Johnson of the University of North Carolina at Chapel Hill told attendees at a Center for Digital Government gathering last month."

Dr. Mark Funkhouser, a former Kansas City mayor and auditor, and director of the Governing Institute, says that "a community's health index is like an individual's credit score. It tells those considering doing business with you how big a risk you are." And just as there are ways for individuals to view their credit scores, the Robert Wood Johnson Foundation's County Health Rankings and Roadmaps presents health rankings for every county in America.

"The realization that there are also economic-development consequences for policies that make communities healthier ought to make allies of two powerful constituencies--the health and wellness advocates and the economic-development lobby--and give public officials a stronger hand in getting those policies in place," argues Funkhouser. "In the end, cities and states that improve their health rankings will win more than just a moral victory for a better quality of life for their citizens; they'll get a leg up in the global competition for jobs."

Monday, December 10, 2012 in Governing

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight