Companies doing business in the developing world have to contend with the staggering human and financial costs of HIV infection—and most would agree that conventional approaches to controlling the epidemic aren’t working. In our experience in the labor-intensive mining industries of Russia, South Africa, and Botswana, we’ve seen infection rates among workers exceeding 90% in extreme cases and productivity losses as high as 30%. Efforts to prevent the spread of HIV infection have been only modestly effective, and so treatment is vitally important. But antiretroviral therapies and their associated health maintenance programs are extremely expensive. In our work with the largest mining companies in the world, we’ve found few that can afford to fund the total lifetime cost of treating workers—which can range from $400,000 to $900,000 per person.
Cutting the Cost of HIV
Companies doing business in the developing world have to contend with the staggering human and financial costs of HIV infection—and most would agree that conventional approaches to controlling the epidemic aren’t working. In our experience in the labor-intensive mining industries of Russia, South Africa, and Botswana, we’ve seen infection rates among workers exceeding 90% in […]
Summary.
Reprint: F0609B
By approaching HIV infection among Russian and Botswanan miners as a financial problem, a Deloitte consultant and a mine executive created programs that improved employees’ health and reduced the costs to the mines.
A version of this article appeared in the September 2006 issue of Harvard Business Review.
New!
HBR Learning
Finance Essentials Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Finance Essentials. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Strengthen your fluency in financial statements.
Learn More & See All Courses
New!
HBR Learning
Finance Essentials Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Finance Essentials. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Strengthen your fluency in financial statements.