Medical Tourism: The Response to Protectionism
If we use protectionist barriers to artificially prop up health care prices in the United States, then people go overseas for health care. It's extremely wasteful (it's much cheaper and better for people's health to have the medical procedures done here), but that is what happens when you have protectionism.
posted by Dean Baker @ 9:31 AM
28 Comments:
At 11:49 AM,
S Brennan said…
The Insurance companies have always pitched their tents with Doctors and big Pharma, this could break that triad.
That triad of Doctors, Insurance and big pharma has turned human suffering into a lucrative extortion racket, if medical tourism takes off you can be sure the holy triad will get their circus monkeys in congress and the courts to outlaw the practice.
I'm not a lobbyist hack, but I could see the triad saying stuff like...Safety...what's best for the patient...bad for the environment...brain drain...infections...ect. Cries for "free trade" will be politely muted until needed to promote some other well heeled client.
At 2:42 PM,
Erik L. said…
Dean- I assume the protectist barriers you write of here are the licensing of US doctors and not allowing just any foreign doc to come here and practice (although we do allow quite a few BTW). If that is the case, before you associate this protectionism with the medical tourism don;t you think you should break down what is causing the difference in cost? They talk about an employer saving $60,000 on a bypass (is this after the first class plane ride for the patient and friend and the 4 star hotel?). How much of that is what the surgeon takes home? I wonder if it is even $6000? I don;t have the numbers but if I am close with the $6000, then what does the Thai surgeon get paid? It seems to me that the "protectionism" may be adding a few thousand bucks to the Bypass. I don't think that would support medical tourism by itself. Do you have the real numbers?
At 12:10 PM,
Anonymous said…
But Med tourism goes in our direction too--I recently observed a UK co-worker book medical tests for his mother on her vacation to visit her son in the US. He even negotiated a price downward from the first quote (astonishingly, he was able to bargain for fees at the rate for people with insurance, instead of the inflated rate for people without insurance). The idea is that she would have had to wait for months in the UK but was able to schedule the appt here in a few weeks, at the convenience of her schedule.
Also, many major medical centers here in the US have a thriving business of wealthy non-citizens who travel here for medical care. And there is another thriving business of top US doctors who moonlight overseas--as private doctors for wealthy families, all expenses paid. Do these premium services for wealthy non-citizens/non-residents squeeze out access to timely and affordable medical care for less affluent, less well-connected US citizens/residents? How would we know?
At 8:58 AM,
Anonymous said…
Erik. 60 minutes had a story on this either last year or earlier this year. Basically what happens is that the Thai doctor comes here, earns his degree, practices for a while in the US and goes back to Thailand where the expense is so much cheaper. Waht costs 30K was one third the expense here.
At 8:04 PM,
Anonymous said…
It's interesting looking back over older posts to see how things develop. There was a report on the UK news yesterday how so many Chineese are starting to holiday abroad and experience life outside of the 'regime'. Thailand is especially popular and one of the biggest attractions are the lady boy shows! New resorts are being constructed especially for the mass increase in tourism because of the new found wealth of Chineese citizens.
There are predictions of 300 million Chineese tourists every year. That is about 5 times the total population of the UK! One of those holidaymakers interviewed taking his family on holiday abroad for the first time was a taxi driver, which goes to prove how the wealth is spreading. He says he is planning to bring his family on holiday to the UK next year. With prices the way they are in the UK, he may save hard. Perhaps he could read my history of accounting which covers the emergence of Western economies.
At 7:58 PM,
breakdown said…
I am from the UK and normally we can get imediate medical operations etc. using private medical care. However those who rely on the national health will have to wait for non urgent operations.
However what we do see is tourists traveling to our country for free medical care that can be treated straight away from the national health and sometimes medication that is available in the UK but not in other countries this includes those from the USA.
Every year the British tax payer, pays millions in taxs to cover medical expenses from those abroad who travel to the UK and have an accident whilst here or come here for treatment.
Mark ICS
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At 6:02 PM,
Anonymous said…
The reality is that regardless of how many have or will engage in the practice of medical tourism or transplant tourism the fundamental issues driving it are:
1) Cost: High health care costs in the US is making it an attractive and reasonable option for the uninsured and the underinsured.
2) Quality: A full 25% of physicians in the US today are foreign born. Many, many more have been trained in the US and then return to their home countries to practice. That means that there are a lot of really, really good physicians outside the US and if you have the means and the desire, why not go international to get health care. So, now the wealthy (http://www.transplanttourism.info) will find it attractive (and trendy). I have a list of 50+ 'medical tourism' and 'transplant tourism' companies and that barely skims the surface.
3) Acceptability: HCA International has recently announced a relationship and access to a facility in Pakistan. HCA subscribers will soon be routed offshore to receive elective, non-emergency care and it will cut the cost of health care. It will result in higher profits by HCA. It will also put some physcians in an interesting position because as this trend continues they will be replaced one-by-one to some degree by those that can deliver the same or better quality services at a lower overall cost.
In summary, this means that it will attract the rich and the poor, the insured, the underinsured, and the uninsured regardless of what country you come from. I'm guessing, but in my mind that just about covers everyone.
It's a big world folks. It's hard to not imagine this as a natural event.
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