• Embed Doc
  • Readcast
  • Collections
  • 1
    CommentGo Back
Download
 
Outsourcing Healthcare
‘First-World Care’ at ‘Third-World Prices’
An MKThink Research Publication
1 December 2006For further information, please contact:Chloe Lauer at 415 288 3394
As healthcare and medical insurance costs skyrocket in the United States, Western Europe, and other developed regions,patients are increasingly seeking treatment abroad. And they do not have to look far to find qualified doctors and hightech facilities in developing (and often exotic) countries that offer a full spectrum of comparable services at a fractionof the price. While there are some potential hurdles for the international health care industry to overcome, hospitals like Bumrungrad in Bangkok, Thailand, showcased here as a Case Study, demonstrate the successes already achieved and the vast potential for the industry’s future growth.
 
© MKThink 2006. Reproduction prohibited without permission.Outsourcing HealthcarePage 2
Globalization is the language of the day, and the health careindustry is no exception. In the past, foreign patients soughtadvanced care in the United States or Western Europe. Today,the fl ow of patients is shifting. With the costs of care skyrocketingand waiting lists lengthening, patients in the U.S. and Europeare seeking care in places like India and Thailand. And peoplewho came to the U.S. for high-tech care in the past are findinginternationally renowned hospitals in Asia that offer comparableor even better care for a fraction of the price (without theheadache of post-9/11 U.S. foreign policy or red tape).Traveling abroad for medical treatment is not a new occurrence—people have made pilgrimages to hot springs or famous healthresorts since antiquity. But the trend has grown significantly inthe past five years for two important reasons: the push factorand the pull factor, according to Businessworld’s December 22,2003 article, “The Health Travellers.” The push factor is the largesurge in demand for health care in developed nations as lifeexpectancy continues to rise and the proportion of the elderly (incomparison to the total population) is rapidly increasing. The pullfactor is the excellent doctors and sophisticated facilities in exotic,developing countries like Thailand, Malaysia, and India.The push and pull factors can be broken down into the sevenprimary drivers of this global outsourcing evolution: cost, timing(waiting lists or lack thereof), quality of care, cutting-edgeprocedures, privacy, the opportunity for pre/post-op tourism, andefficiency.
Cost:
approximately. 1/3-1/10 the cost in the U.S. orEurope, including airfare and lodging.
Timing:
nearly immediate care instead of six to nine-monthwaiting lists.
Quality:
complete competency; more RNs per patient; newfacilities; better rooms; state-of-the-art technology.
Cutting-Edge Procedures:
life-changing operations not yetthrough the U.S.’s tedious FDA approval process.
Privacy:
recuperate away from friends and co-workers.
Tourism:
a change of scenery does wonders for the body,mind, and spirit during recovery.
Efficiency:
Many patients don’t have a lot of vacationtime/sick leave, so the possibility of combining surgery with atropical vacation is appealing.
POTENTIAL HURDLESQuality.
Western patients may at first be wary at the prospectof traveling half way across the world for a surgery that couldmean the difference between life and death. After such initialdoubt, many patients will be convinced by statistics andanecdotes alike that outsourced care is high-class. Take thestory of Naresh Trehan, a heart surgeon at Escorts hospitalgroup in India, for example. Formerly earning $2 million/year inManhattan, Trehan recently returned to Delhi, where his hospitalcompleted more heart operations (4,200) than anywhere elsein the world in 2004 with death and infection rates well belowfirst-world averages (.8% and .3% compared with 1.2% and 1%,respectively). “Nobody questions the capability of an Indiandoctor, because there isn’t a big hospital in the United States orBritain where there isn’t an Indian doctor working.”
1
And what about the patient experience? Byron Bonnewellof Louisiana, who received a quintuple bypass surgery atBumrungrad Hospital in Bangkok, Thailand, raved about histreatment: “In Thailand, I bet I had eight RNs just on my section ofthe fl oor alone. First-class care.”
2
These international hospitals pride themselves on creating anatmosphere of luxury. It’s no mistake that the facilities look morelike a five-star hotel than a hospital. Kim Atwater of Oregonexplains, “It’s much nicer than any hospital I’ve ever stayed in theUnited States.
2
Outsourcing Healthcare
‘First-World Care’ at ‘Third-World Prices’
 
Outsourcing HealthcarePage 3© MKThink 2006. Reproduction prohibited without permission.
Nicer is an understatement. Think private room with private bath,plus massages and yoga classes. And you can stay as longas you want. Anne Bell of the British High Commission in NewDelhi is happy that her baby was born in India instead of theUK: “There’s no pressure to go home after the delivery. We’vebeen welcomed to stay as long as we want…Often in the UK, you might be out of the hospital within five hours if you’ve had anormal delivery.
2
Insurance.
Very few medical insurers, whether public or private,currently extend health coverage to another country, with theexception of emergency services during travel. For this reason,most patients seeking overseas care are self-financed. People whohave medical insurance typically choose to stay at home wheretheir coverage is accepted. However, when the wait is too longor the procedure unavailable, even insured patients will opt foroverseas services.
3
 
Law.
It is unclear what recourse patients have in the case ofmalpractice since the legal structures in the countries known formedical tourism differ from those in the United States and GreatBritain. In any case, most patients are very satisfied with theirexperiences, so the need to resort to legal measures is minimal,according to our research thus far.
Accreditation.
Some international hospitals are seekingaccreditation from the groups that administer medical facilitiesin Britain and the U.S. Bumrungrad (Bangkok, Thailand) isaccredited by the U.S.-based Joint Commission on Accreditationof Healthcare Organizations, and the British Standards Institutehas given Escorts (near Delhi, India) its stamp of approval.The Apollo Group hospitals and Escorts are in the process ofbecoming certified by the Joint Commission.
Pre- and Post-Op Care.
So you make it to India and havea successful kidney transplant. What happens once you’reback home and need a post-operative check-up? What aboutcomplications and side affects that you didn’t anticipate? This isa valid concern. A successful surgery is just the first step towardbetter health. The recovery process is completes the procedure.
5
Digital technology is one part of the solution to the distancebarrier. With the ease of communication enabled by today’stechnology, doctors and patients can be in touch both before andafter the procedure. Web-cams and video conferencing help toease the physical divide, but nothing compares to a face-to-faceconsultation.
Local Population.
Some argue that the medical tourism boomwill reduce the care available for the local populations wherethese international hospitals reside. Critics are concerned thathospitals will cater to the wealthier patients from out of townwhile neglecting those from the other side of town. Whilethese concerns should not be dismissed lightly, it seems thatthe opposite may be true. The local population can stand tobenefit from the state-of-the-art care offered by an internationallyrecognized hospital as long as both local and internationalpatients have equal access to care and local patients continueto represent a significant percentage of those treated. AtBumrungrad Hospital in Bangkok, Thailand, for example, Thairesidents still accounted for 63% of the hospital’s 2002 revenues.And the Bumrungrad Hospital Foundation, founded in 1990, isdedicated to improving the health care for underprivileged Thais.In India, Apollo Hospital Enterprises responded to criticism fromIndia politicians by reserving beds for those unable to pay forcare, setting up a trust fund, and pursuing remote telemedicinethroughout India.
4
Perception of this region as breeding ground for infectiousdiseases.
The avian fl u and SARS epidemic may keep some ofAsia’s would-be patients at home, but these scares will causeonly minor downturns in an ever-strengthening global healthcaremarket.
Government Regulation.
In the free market as in health care,government interference is at an all-time low. Going abroad forhealth care is becoming more and more commonplace, andgovernments are likely to at least allow—if not encourage—innovations that bring affordable, high-quality health care to moreof their populations.
of 00

Leave a Comment

You must be to leave a comment.
Submit
Characters: ...

So this implies outsourcing of the treatment as well. Wonder if different countries could compete on the same healthcare treatment? http://hubpages.com/hub/HealthcareOut...

You must be to leave a comment.
Submit
Characters: ...