Discussion about entry: Medical Tourism – Healthcare in the Competitive Global Marketplace

Comments

Tyler Ahn profile img
Wed, 06/27/2007 - 17:36

Dear Dr. Horowitz:

We have a few questions for you in terms of a few more details of your service.

* What is the breakdown of your medical services? (i.e. cardiac surgery 20%...etc)
* What will your organization's role in the long term?
* What is your target population?

We would love to hear more about what role in this emerging sector.

Thank you in advance for your response!

Changemakers Team

Jurate Pasnovaite profile img
Fri, 04/23/2010 - 05:02

Lithuania offers perfect conditions for medical tourism, but however it is not very competitive in World medical tourism market. Maybe that`s because it is a young little country and only a few people know something concrete about it? Following this link will explain why Lithuania is pretty attractive as a medical tourism destination: http://www.way2lithuania.com/en/travel-lithuania/medical-tourism-li... dental, plastic surgery, spa centers - affordable price for great quality.

I would really appreaciate if anyone could let me know any reasons for choosing your own destination of medical tourism.

Sun, 07/01/2007 - 13:41

Dear Ms. Ahn,

Thank you for the interesting questions about medical tourism and Medical Insights International.

There is no verifiable quantitative information about the services patients seek in medical tourism destinations. Nevertheless, my research over the past two years enables me to make some general statements in this regard.

* The most common procedures for which patients pursue medical tourism are cosmetic / plastic surgery and dental intervention. This group may represent half of all the American patients currently traveling to medical tourism destinations.

Other procedures for which patients commonly seek offshore care include:
- Orthopedic surgery (knee replacement & hip replacement or resurfacing)
- Cardiac surgery (coronary artery bypass & valve replacement or reconstruction)
- Bariatric surgery (procedures for the treatment of obesity)
- Fertility treatment (in vitro fertilization and similar procedures)
- Organ transplantation

Patients seeking stem cells therapy represent a rapidly growing segment of the medical tourism population. This treatment, which may be helpful for a variety of problems, is unavailable or restricted to clinical trials in many industrialized countries.

* Medical Insights International’s long-term goal is to serve as a source of objective information, thoughtful analysis and critical insights regarding the rapidly evolving medical tourism phenomenon. The firm will be the thought leader in this field.

Medical Insights International will collaborate with experts in many disciplines to develop a multidimensional understanding of the forces that drive patients to seek medical services in faraway destinations, bypassing healthcare offered in their own communities. This understanding provides key insights and has important implications for healthcare providers in the countries of origin and destination.

* As the wellspring of credible information, knowledge, insight, and wisdom, Medical Insights International will focus on a number of parties involved or interested in the medical tourism industry.

The firm will serve medical organizations, hospitals / healthcare systems, participants in the insurance / employee benefits industry, philanthropic organizations, parties charged with developing policy, and the media.

Michael D. Horowitz, MD, MBA
Principal, Medical Insights International

Tyler Ahn profile img
Tue, 07/03/2007 - 13:12

Dear Dr. Horowitz:

Thank you for your response to our previous questions. There still remain a few concerns from perhaps on the medical care side of things that have been brought up to our attention. We hope that you will be able to address these questions as well.

First, there is no way to ensure standardized care in medical tourism sites around the world, and plenty of anecdotal cases of harm being done by substandard practices in resource-poor areas. What does your program do in this area to ensure that only sound medical services are received by your clients/patients? Second, treatment of patients from the developed world takes away needed health care resources from countries that desperately need them to treat local patients. Is there any efforts to increase the capacity and capability of these health care providers so that foreign patients are not taking away from the needs of the native population? Third, unless the proposal illustrates some sort of cost-sharing or cost-saving practices, how to poorer members of developed societies access this care? And does that access make up for the cost of travel?

Thank you,
Changemakers Team

Wed, 07/04/2007 - 14:58

Dear Ms. Ahn,

Thank you for your very interesting questions. Indeed, you are inquiring about some of the most important and difficult issues in medical tourism.

It is important to remember that medical tourism is a marketplace phenomenon that is driven by patients who are unable or unwilling to have the medical services they need or want in their own country. These consumers work outside the formal healthcare system and typical medical referral network to find healthcare in other nations. Patients who pursue offshore care likely feel disenfranchised and abandoned by the healthcare community in their own country. On the destination side, providers are eager to serve foreign patients for a number of reasons, particularly financial incentives and enhancement of reputation.

The underlying question in most discussions about medical tourism is whether it is good or bad. The answer to this question is that medical tourism is neither good nor bad – it is both good and bad at the same time. Since medical tourism is a reality, fueled and driven by powerful marketplace forces, the better questions relate to developing and ensuring best practices in the industry. For example: “What are the best destinations for each problem / procedure?” “What can be done to be certain that patients receive high quality care?” and “How can local residents benefit from service to foreign patients?”

As a source of credible information, thoughtful analysis and critical insights about the medical tourism industry, Medical Insights International will help to answer these questions. Importantly, we will synthesize many other questions as the industry continues its rapid evolution. Medical Insights International will disseminate information to clients and other constituents through consulting engagements, presentations, seminars, newsletters and other publications.

* Your statement that there is no way to ensure standardized care in medical tourism destinations around the world is correct. As you point out, there are a number of reports about serious complications among patients who have had offshore procedures. Unfortunately, these serious issues transcend borders and patients also have avoidable poor outcomes in every nation, including the US.

A number of medical tourism destinations are accredited by Joint Commission International (JCI), a subsidiary of The Joint Commission, and/or by the International Organization for Standardization (ISO). JCI has accredited more than 120 hospitals in 23 countries since it began evaluating foreign hospitals in 1999. Many practitioners in these facilities hold US board certification (or equivalent credentials from developed nations including Canada and UK). Accreditation and certification may be useful to patients in choosing destinations for offshore healthcare.

Certainly, there are excellent practitioners delivering high quality care in well-equipped modern medical centers in a number of medical tourism destinations. Indeed, some surgeons have left very successful practices in major American medical centers to continue their career in their homeland (Lancaster, 2004). Undoubtedly, excellent heart surgeons in New York and Minneapolis maintain their expertise when they move their practices to modern facilities in New Delhi and Bangkok.

The challenge that patients always face is identifying desirable providers and differentiating them from dangerous practitioners and inadequate facilities. This can be difficult for patients in their own community in the US – it is a daunting endeavor when considering healthcare in foreign countries and cultures thousands of miles away.

Patients may get useful information, guidance and assistance from medical tourism agencies. There are many such agencies that help patients select suitable destinations and arrange care and travel. Some of these agents, particularly those with healthcare backgrounds, are very focused on quality of care.

Medical Insights International is not a medical tourism agency – we do not provide referral services to individual patients. Our work may influence the destinations where patients get healthcare only as a consequence of a presentation or publication, or as a result of consultation provided to providers, insurance and employee benefits entities or other clients.

* The impact of serving foreign patients on local residents is also a very important issue – one that certainly will elicit much controversy. As you point out, concern has been voiced that the treatment of patients from the developed world takes away needed health care resources from countries that desperately need them to treat local patients. Chinai and Goswami (2007) believe that medical tourism may undermine the care of local residents by adversely impacting workforce distribution.

Conversely, Mattoo and Rathindran (2006) suggest that the revenue generated by poor countries providing medical services to patients from other nations will generate revenue and enhance expertise that will actually create opportunities to improve the access and quality of care available to the citizens of these countries. These authors also discuss the issue of equitable access for local residents, including universal access policies.

Medical tourism destinations must increase capabilities and enhance technology and accommodations in order to attract foreign patients. Therefore, medical tourism provides a mechanism to establish advanced modern facilities in the community. In this regard, local residents get the potential opportunity to benefit from technology and skills that would not exist in their community if not for foreign patients. Nevertheless, these facilities are developed in locations that will best suit foreign patients, not where the local need is greatest.

It is likely that the impact of the medical tourism industry on the native population will vary substantially between various destinations – the impact may be positive in some countries and unfavorable in others.

* Yes. There is so much disparity in the cost of care between certain countries that the savings easily cover the cost of travel.

As an example, consider an uninsured American patient who needs a procedure for which he will have to pay $50,000 for professional services, facilities and medications. The cost for the same service in India or Thailand would be $5000 to $10,000. Adding travel (economy class) and accommodations costs of $7000 for the patient and a companion provide savings of at least $33,000.

There are several reasons that offshore medical centers can provide care so affordably, including the level of economic development of the destination country as well as minimal administrative and medicolegal costs.

* At this time, the poorest members of developed societies are generally unable to pursue medical tourism as an option for low cost care because their resources are inadequate to pay for the care and travel. Nevertheless, some patients have been able to get offshore care through fund raising drives and donated frequent flier miles.

We propose that there may be creative opportunities to utilize low cost offshore medical destinations to provide care for unfunded low-income patients. This could potentially relieve some of the burden on domestic health care facilities and extend the resources of philanthropic organizations (Horowitz & Rosensweig, in press 2007). To our knowledge, the proposal to utilize offshore providers in this way has not been explored.

For example, consider a charitable organization that has $1 million to pay for eligible patients to have elective surgical procedures for a specific type of problem. Using the cost and travel information cited above, this organization can provide service to 20 people in domestic facilities or it can amplify its mission and provide care to more than 58 people utilizing offshore providers and facilities.

Michael D. Horowitz, MD, MBA
Principal, Medical Insights International