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The CHEST Foundation and the Kellogg School of Management
Case Competition 2010

C a s e   B a c k g r o u n d

Chronic diseases, including diabetes, affect more than 162 million individuals (55.8%) in the United States. These conditions shorten lives, reduce quality of life, and create considerable burden for caregivers. In 2003, the total cost (treatment expenditure plus lost productivity) was $1,323.7 billion, and it is projected to be $4,130.0 billion by 2023 if no improvements are made to the current system.1 The design of innovative methods for the care and management of chronic illnesses will have a significant impact, both on patients and the US economy.

The 2010 Social Entrepreneurship in Health & Wellness Competition will focus on diabetes, the prevalence of which continues to rise (a 9.8% compound annual growth rate from 2003 to 2009).1,2 Diabetes is being called the epidemic of the 21st century.3 As a chronic illness with many interrelated influence factors, diabetes is a difficult disease to manage.

One method for improving outcomes and reducing economic burden is by applying a chronic care model, as developed by the Institute for Healthcare Improvement (IHI). The chronic care model uses evidence-based, guideline-driven models of care for primary care physicians and other health-care providers that encourage high quality chronic disease management.4

Research also has indicated that management of chronic illness results in improved outcomes when there are links between the provider, patient, and community resources.4 Chronic care treatment models often seek to achieve patient compliance through empowerment. Successful examples of empowering patients to participate in their care include the development of the insulin pump and education aimed at understanding food labels. Despite these successes, diabetes proves particularly challenging to manage due to the multiple lifestyle changes required.


  1. An unhealthy America: the economic burden of chronic disease. http://www.chronicdiseaseimpact.com/ebcd.taf. Accessed November 11, 2009
  2. Centers for Disease Control and Prevention. Diabetes: successes and opportunities for population-based prevention and control. http://www.cdc.gov/nccdphp/publications/aag/pdf/diabetes.pdf. Accessed November 11, 2009
  3. Diabetes becoming epidemic of 21st century. http://www.cbc.ca/health/story/2006/12/04/diabetes.html. Accessed November 11, 2009
  4. Institute for Healthcare Improvement. How to improve. http://www.ihi.org/IHI/Topics/ChronicConditions/Diabetes/HowToImprove/. Accessed November 11, 2009