Sunday, June 21, 2009

Rising Medical Costs Are Driving Patients Overseas

*Update: I changed the title because I decided it's not really a "failure" of the medical industry, more an implication of rising costs.

I just read a great article in the Pittsburgh Post-Gazette written by Dr. Josef E. Fischer, entitled "Outsourcing Patients: the Failures of Our Health System Are Driving More and More Americans To Look For Treatment Overseas". Dr. Josef E. Fischer is the William V. McDermott Professor of Surgery at Harvard Medical School and a past chairman of the Board of Regents of the American College of Surgeons. (He knows what he's talking about)

The article emphasizes that there is one particular threat to our medical sector that demands particular attention: Medical tourism.

Mainly, [medical tourism] means surgical tourism -- patients going abroad for surgical care. Our initial response to this phenomenon, which began in earnest in 1998, was reminiscent of our response to competition in our manufacturing industries: We denigrated the upstarts. Their products were poor, outcomes unsatisfactory; there were many complications, surgeons were poorly trained, facilities were inadequate -- with dated imaging equipment and the like.
Dr. Fischer has visited overseas facilities and asserts that the clinics are first-class, and various levels of accommodation are available, from moderate to luxurious. Staffs are caring, schedules are tight, and a variety of tests can be accomplished within 24 hours, not spread over weeks as they are in the U.S. Bottom line: most foreign medical centers rival those in the United States.

What's driving thousands and thousands of people overseas?

Dr. Fischer asserts that this phenomenon may be attributable to the "inexorable increases" in U.S. health-care costs at a rate far exceeding inflation, with health insurance companies paying a smaller percentage of the medical bills and patients paying more.

Why would someone travel 10,000 miles to get medical treatment from a doctor they don't know at a hospital whose name they can't pronounce?

Dr. Fischer asserts that its all about "One-stop shopping. Fully integrated hospital medical staff. Immediate access. No technology or quality gap. Competitive prices. A focus on service."

This article is excellent. It notes the scary price gaps that exist between countries. I really never understood the gravity of the price disparity until my family-member had a dental bridge done in India. The price in India: $2,000. What was the price stateside? $15,000 - $20,000! Dr. Fischer notes the price discrepancy:

...the cost of a heart-valve replacement in the United States: $230,000. In India, the same procedure, all costs included, runs $9,500; in Thailand, $10,500; in Singapore, $13,000.

A knee replacement in the United States costs up to $58,000. In India, it's about $8,500; in Thailand, $10,000; in Singapore, $13,000.
Dr. Fischer noted that we can reduce costs of U.S health care. Of the few ways, one was tort reform. If malpractice costs were lesser, the savings would trickle down to the patient. Oh yea, and Electronic medical records! According to Dr. Fischer, EMR may help, but there has to be an emphasis on interoperability. Find the article, read the article!

Source: Dr. Josef E. Fischer, Pittsburgh Post-Gazette (Pennsylvania), Outsourcing Patients: The Failures of Our Health System Are Driving More and More Americans To Look For Treatment Overseas, Pg. B-4 (June 21, 2009 Sunday) (Available in the Two Star Edition, Editorial Section):

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