Medical Outsourcing
Is Outsourcing Medical Procedures for Americans in our Near Future?
Will only the wealthy be able to afford US medical care?
Below is an article by Jeffrey D. Voudrie, CFP, (Guarding Your Wealth) discussing just that probablility:
American companies have been downsizing by hiring overseas workers to handle tasks once reserved for American employees. Manufacturing plants from a wide variety of industries have moved their operations abroad. Now another area is being influenced by outsourcing: healthcare.
No matter on which side of this issue you stand, the fact is that outsourcing has lowered the costs of many goods and services in our country, from computer programming to clothing. Outsourcing is what has allowed our economy to keep inflation in check even while energy and materials prices have skyrocketed.
Outsourcing has made inroads into healthcare services, too. Chances are that your X-Ray or MRI was read by an Indian doctor, or that your doctor’s notes were transcribed by a Filipino. Turns out you can now have a heart bypass overseas, too. And at a cheaper cost and with quality equal to American hospitals.
Think about it. For years many have been purchasing prescription drugs from Canada and Mexico. Wealthy individuals have sought to convalesce from their tummy tuck or face lift with warm, tropical breezes. But today’s medical outsourcing is reaching way beyond cosmetic procedures. And it’s benefiting those who can’t afford the high cost of medical care in the U.S.
Many factors have converged to make medical outsourcing a rising trend—and a necessary one. America’s spiraling heath care costs are making it harder for American companies to remain competitive. Annually increases of 10-20% simply aren’t sustainable.
That’s why more and more private and public employee health plans are covering procedures done abroad. Even with travel costs included, these institutions are still seeing savings of more than 50% for their members. I expect this trend to continue.
For those without insurance, purchasing their health care overseas might be the only option they have. As health care premiums rise and those with pre-existing conditions find themselves locked out of coverage, the need for inexpensive alternatives will only increase.
A large percentage of doctors and nurses trained in America are foreign born. Our training remains the best in the world. Now, more and more of those foreign-born professionals are choosing to return to their countries to work at state-of-art facilities. They can have a higher standard of living while providing care at a fraction of the cost in the U.S.
The bottom line is that patients could see savings of between 50% to 95%. According to data cited in The Journal of Financial Planning (Oct. 2007), a heart bypass that would have a retail cost of between $122,424 and $176,835 in the U.S. would only cost $10,000 in India and $20,000 in Singapore. A knee replacement that costs between $40,640 and $58,702 here would cost $8,500 in India and $10,000 in Thailand.
While the standards of care found in overseas facilities can vary widely, premier foreign hospitals are emerging that equal (and sometimes exceed) the quality patients receive here at home. For example, Bumrungrad Hospital in Thailand has cutting-edge facilities that rival those of the best U. S. hospital. A former New York University medical school professor of 20 years and cardiac surgeon respected world-wide founded a premier heart institute in India.
Obviously, foreign health care has a number of risks. Providers must be carefully researched to be sure they meet high standards of care. Should something go wrong during your treatment, your ability to sue due to malpractice is either limited or non-existent. Distance from home, your own mobility and ability to travel, red tape, and the stability of the local government are just some of the factors you need to consider.
In today’s new globalized market, though, you have a voice and a power you didn’t before. Foreign medical providers see you as a customer to service, something few of us experience here in the States! Foreign hospitals don’t boot you out the door right after surgery, allowing you to recover more comfortably.
The established American medical community may not like it, but foreign competition is knocking on their door. As more Americans receive their health care overseas, perhaps it will increase pressures to contain costs at home, while creating a more customer-focused style of care. Otherwise, more of us might be packing our bags for a ‘medical’ vacation. Imagine taking a cruise while having your hip replaced!
