17 December 2009
As healthcare improves globally, patients can obtain high-quality care down the street -- or halfway around the world. Here’s how to compete in this emerging marketplace.
Continent hopping is arduous even for the most hardy; for the very ill, it can be perilous.
But they don't have to anymore. As healthcare improves worldwide, consumers in many countries can be treated by local healthcare providers and receive care that is as good as or better than the care they'd receive in the West. Or they can choose to travel the world for the best quality healthcare at the best price. That's because world-class healthcare is becoming readily available internationally -- and often for very affordable rates.
This has not escaped the notice of healthcare consumers. The trend is so pronounced that it has a moniker -- medical tourism -- and a growing share of the world's healthcare dollars and euros. In America alone, an estimated 750,000 people went overseas for medical treatment in 2007, and an estimated 1.6 million could travel for their healthcare by 2012, according to a 2009 study by the Deloitte Center for Health Solutions. And Gallup research shows that 29% of Americans would consider traveling to another country for a variety of medical procedures, including heart bypass surgery, hip or knee replacement, plastic surgery, cancer diagnosis and treatment, or alternative medical treatments. (See "Americans Consider Crossing Borders for Medical Care" in the "See Also" area on this page.)

Traveling internationally with a debilitating medical condition can be difficult, but it may save money. For example, a heart bypass surgery that runs $54,000 USD or more in the United States costs less than $10,000 USD in India. A hip replacement in the United States costs, on average, $45,000 USD; in Turkey, it can be had for $10,750 USD. And many patients who travel internationally for treatment are receiving excellent care. Among hospitals accredited by the Joint Commission International (JCI), a division of the Joint Commission, medical attention meets or exceeds the international standard.
As the world market for healthcare develops, medical tourism has rattled healthcare providers. For one thing, there are genuine concerns about long-distance travel for medical treatment. Continent hopping is arduous even for the most hardy; for the very ill, it can be perilous. Consumers also need to be wary that their hospital meets certain standards -- facilities aren't required to be JCI accredited, after all. And even when the hospital provides excellent care and the treatment is flawless, after-care can be difficult to coordinate.
Those aren't the only concerns -- there's also the impact that medical tourism can have on a hospital's bottom line. A 2008 study by the Deloitte Center for Health Solutions, for example, projected what Americans would spend on medical tourism. The study estimated that in 2008, Americans would spend $2.1 billion to obtain healthcare outside the United States, which represents an opportunity cost of $15.9 billion for U.S. healthcare providers. Given that the number of outbound American medical tourists could reach 1.6 million by 2012, this could translate into a loss of billions of dollars in revenue for U.S. providers, according to the Deloitte study.
Significant barriers
With an excellent standard of healthcare combined with low prices, it's a wonder medical tourism isn't more common. In fact, more people probably would travel for their medical care if it weren't for several significant barriers:
- Patients who require serious healthcare need reliable medical information, and it's not always easy to obtain such intelligence on hospitals outside one's home country.
- In the United States, most insurance companies don't cover non-urgent medical care in other countries. So it doesn't make economic sense to travel for treatment.
- Traveling internationally for surgery can be intimidating to coordinate. Many people don't want to face the difficulties of traveling to another country on top of the exigencies of recovering from surgery
