Health inequity is costing the U.S. health system billions of dollars annually, and could reach $1 trillion by 2040, according to a new report from Deloitte.

But, according to the report's authors, there is one bright spot on the horizon. Boards of health companies are increasingly focused on addressing inequity.

Health equity became a popular phrase during the pandemic and following the murder of George Floyd as calls grew to address systemic inequities in the U.S.

For years, studies have underlined the need to address health inequities, and numerous pilot programs have been tested to provide more efficient health care, but no scalable solutions have ever been realized.

Deloitte estimates that health inequities account for $320 billion in annual health care spending today, or cost about $1,000 per American annually. Its analysis projected the trajectory of unnecessary healthcare spend that is higher among poorer populations and minorities. Researchers analyzed five diseases that predominantly affect these populations, including heart disease, diabetes, breast cancer, colorectal cancer and asthma.

The researchers analyzed five high-cost diseases — diabetes, heart disease, asthma, breast cancer, and colorectal cancer — and determined common health disparities among the patient populations. They then used this data to establish the proportion of spending that could be attributed to health inequities.

Neal Batra, a principal in Deloitte’s Life Sciences and Health Care practice, said the key to tackle the issue is pressure from consumers and investors.

"You have more energy and attention around it than ever before. What we also know is that this topic is a genuine topic of discussion at the board and C-suite level in a way it's never been before," Batra said.

"I think boards care about this because investors care about this. I think investors care about this because they genuinely believe consumers care about this. And they believe consumers care about this, in large part, because of...George Floyd," he added.