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Free Trade - Medical Tourism

by Joan Trombetti, Writer | January 28, 2009

Erb says that while employers back medical tourism largely as a cost issue, Aetna sees it a little differently. "We are seeing it as a quality and cost opportunity. We are also seeing American hospitals displaying increased transparency on cost and quality data, similar to what is seen from some of the better overseas institutions," says Erb. Some domestic hospitals are responding to consumer and employer interest in medical tourism, and are willing to talk about the creation of a similar program that supports employer-funded travel to specific American hospitals that have agreed to competitive rates for similar elective surgical procedures. After examining "all in" costs, including the procedure, travel, etc., some domestic hospitals are finding that they can deliver a compelling and competitive price to compete for business that might otherwise go overseas.

U.S. Hospitals Working With International Health Systems
"As an American hospital's reputation and presence in a region grows, so does the number of referrals to it."
Michael D. Horowitz
With an increasing number of patients from around the world traveling for healthcare, the question of quality has been raised. When considering foreign providers, many look for the Joint Commission International's stamp of approval - an indication that a hospital has the systems and processes in place to support high-quality and safe patient care. `
After 9/11, the ability for American hospitals to successfully attract patients from around the globe was hindered because it became difficult (particularly for those coming from the Middle East) to obtain U.S. medical visas. More than seven years later, hospitals are once again enjoying an increase in international interest, leading many hospitals in the U.S. to partner with health care systems abroad.

There are several major U.S. healthcare providers that now have extensive presence in the Middle East, the South East and Asia. "U.S. hospitals systems have long received patients from the international marketplace," says Horowitz. One of the biggest reasons for this venture is that hospitals have a great deal to gain in the way of revenue, and joint ventures result in generous tax incentives for U.S. hospitals. Foreign hospitals have recognized that partnering with a well-known hospital system and/or medical school gives them instant credibility and becomes a draw spurring economic growth and development within that region.

The Deloitte report finds that inbound tourists are not as concerned about saving money as they are about the higher quality and decreased waiting time with U.S.-based medical care. Therefore, those providing inbound medical tourism programs are primarily large teaching institutions that have national and/or international reputations.