Introduction
Global competition is emerging in the health care industry. Wealthy patients from developing countries (this article mainly deals with the U.S. market) have long traveled to developed countries for high quality medical care. Now, a growing number of less-affluent patients from developed countries are travelling to regions once characterized as “third world.” These patients are seeking high quality medical care at affordable prices. Anybody who thought that this kind of tourism only occurs at a small scale should think twice about it; McKinsey & Company estimated that the industry will gross 100 billion dollar in 2012. However, if American health care consumers are to benefit to the fullest extent from global health care competition, federal and state policies must allow them to take advantage of the opportunities.
Essay by Wouter Wensink
Master in Tourism Destination Mangement student 2008/2009
The concept of medical tourism is not a new one. The first recorded instance of medical tourism dates back thousands of years to when Greek pilgrims traveled from all over the Mediterranean to the small territory in the Saronic Gulf called Epidauria. This territory was the sanctuary of the healing god Asklepios. So, Epidauria became the original travel destination for medical tourism. Nevertheless, medical tourism nowadays takes place on a whole different scale than thousand years ago. An estimated 500,000 Americans traveled abroad for treatment in 2005. A majority traveled to Mexico and other Latin-American countries; but Americans were also among the estimated 250,000 foreign patients who sought care in Singapore, the 500,000 in India and as many as 1 million in Thailand. It seems that the hospitals in the U.S. are having serious competitors, which is actually very much needed in the U.S. health care system.
Although the increasing popularity of medical tourism some comments should be taken seriously in consideration. Health care globalization, including medical tourism and medical outsourcing, has the potential to lower costs and increase competition in the American health care industry. However, there are numerous obstacles to incorporating foreign health care providers into the U.S. health care system. Some of these barriers are the result of entrenched interest groups that do not want to compete with low-cost providers. Federal and state laws also create a number of obstacles to Americans seeking treatment abroad, including outdated laws supposedly intended to protect consumers that now merely increase costs and reduce convenience. Finally, state and federal regulations currently restrict public providers from outsourcing expensive medical procedures.
It is unrealistic to assume that every American will travel abroad for medical care. But it doesn’t require huge numbers to induce change. If only 10% of the top 50 low-risk treatments were performed abroad, the U.S. health care system would save about 1.4 billion dollar annually. As more insured patients begin to travel abroad for low-cost medical procedures, medical tourism will result in competition that is sorely need in the American health care industry.
In my opinion, the U.S. governments should change the federal and state policies in order to let benefit the customers as well as the American hospitals to profit from the medical outsourcing. Addressing particular needs and requirements nowadays are critical for success. This concerns the customers who all require specific treatments and less costly options for medical treatment but also the American hospitals who need to able to compete without constraining laws and restrictions.
It is true that American medical companies have to focus there efforts on creating more reliable health equipment and services for lower costs if we are to compete with the globalized market. The industry has been protected for too long and it has made them become almost stagnet. There is a medical equipment company that is changing the name of the game when it comes to reliable equipment that looks to the future. The equipment can be atapted to fit current machines and has the fore sight to fit future equipment as well. Check out their blogs on the industries needs at: http://www.monolithicindustries.com/BLOG.html
Does this medical equipment company operate worldwide or only in the U.S? Because if it’s worldwide then I could imagine that its product could undermine the competitive position of the American Medical Companies. I mean you could find this reliable health equipment as well in Mexico as in Thailand…
As I could make out the U.S. got some big competition and why not? I mean if it is much cheaper to go to Asia for your treatment and a short holiday, why would somebody pay more and stay in the U.S. itsel? One should not underestimate people from the so called “third world” because they can be the leaders in the future!I don’t agree that the U.S. governments should change the federal and state policies in order to let benefit the customers as well as the American hospitals to profit from the medical outsourcing. I think every person is aware of the fact what he or she is doing, so if they want to go out of U.S. for a medical threatment in Asia why not? Besides that there are even people who prefer to stay in U.S. for their treatments so who will win in the future?the U.S. or Asia ?will be answered in the future..
The U.S. governments should change the federal and state policies so that the U.S. can also compete with other countries on medical tourism. This will have an advantage for the country as they will receive more tourists and money into the country. I think this is really necessary as it will lead to huge advantage for the U.S. medical tourism because normally on medical aspects the U.S. is mostly the leader. Third world countries are at the moment more interesting because of its services and of course the most important factor are the prices but if the U.S. will change this as well they will play an important role in medical tourism.