NEW YORK – About 750,000 Americans traveled abroad for medical care last year, and the number is expected to increase eightfold to 6 million by 2010, according to a recent study by the Deloitte Center for Health Solutions based on a broader study of health care consumers.
The study, “Medical tourism: Consumers in search of value,” also estimated that U.S. patients contribute $2.1 billion to the medical tourism industry.
The key drivers for this trend, the study found, are the fast-rising cost of health care services in the United States and the growth in “health care consumerism,” the notion that people should have greater control over their health and medical care and how their money is spent.
“In health care, price hasn’t been a factor to many since consumer out-of-pocket expenditures are only 19 percent of the total,” said Paul H. Keckley, executive director of the Deloitte Center for Health Solutions, in a cover letter to the study. “However, that percentage is increasing and price sensitivity is soaring, especially for those with high-deductible insurance programs. The growth of medical tourism might be a signal as to how consumers calculate their value proposition weighing all three [factors] – price, quality and service.”
The study notes that medical care in countries such as India, Thailand and Singapore “can cost as little as 10 percent of the cost of comparable care in the United States,” and the airfare and a stay in a resort hotel are often included in the price.
“Thanks, in part, to these low-cost care alternatives which almost resemble a mini-vacation, interest in medical tourism is strong and positive,” the study says.
The study also notes that the biggest obstacle in the past, concerns about safety and quality of care, “is no longer an issue,” because organizations such as the Joint Commission International and others are accrediting facilities abroad.
“Consumers are willing to travel to obtain care that is both safe and less costly,” Keckley noted. “In fact, two in five survey respondents said they would be interested in pursuing treatment abroad if quality was comparable and the savings were 50 percent or more.”
Other safety factors do remain, however, such as the need for follow-up care and the potential risks associated with air travel shortly after major surgery.
The study also predicts that growth in the long term will be tempered by several factors, including supply capacity constraints in foreign countries; U.S. health plans’ possible decision to not cover services provided offshore; U.S. providers’ possible decision to compete more aggressively with their foreign competitors; and potential government policies that might curtail demand.
The full study is available online at http://www.deloitte.com.
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