Clean, Not Sterile: Patients come to Bumrungrad and Bangkok Hospital for the surgery -- but stay for the espresso. | photograph by Steve Bronstein
Not a Hotel: The main lobby at Bumrungrad offers up a global cross section of humanity. Your recovery suite awaits. | photogragh by Tony Law
The process will pick up speed as heavyweight for-profit U.S. hospital chains such as HCA ($26.8 billion in revenue), Tenet Healthcare ($8.8 billion), or HealthSouth ($1.7 billion) realize that hospitals such as Singapore's Parkway Group or India's Apollo chain aren't competitors so much as links in a global, offshore supply chain that can be bought and brought into the fold just as easily as a Toyota or GM plant. Medical tourism hubs will become different stops on the same assembly line: Brazil and South Africa for plastic surgery; Mexico and Hungary for dentistry; Costa Rica for a little of both; and Southeast Asia for the bodywork of heart surgery, organ transplants, and orthopedics. Patients needing new hips or hearts will be the first sent overseas by their doctors for the same reason medical tourists are headed there now: The procedures are safe, low margin, and high volume -- always the first things to go in any globalization scenario.
"There are going to be primary-care networks and emergency care, and then there are going to be surgical centers offshore," says Toral, laying it all out for me over dinner one night in Bangkok. "And the great thing is, [American companies] are going to own them!
"In order to ensure continuity of care," he goes on, "you'll never leave the system. What could be better than telling an American patient they're going overseas to an American-owned hospital? They're going to discover the same supply-chain advantages Toyota did when it created just-in-time manufacturing. We're going to have the same thing -- just-in-time patients. Hospitals are not going to spend any more money or any more time in the movement of that patient through the system than is necessary. They're going to get the patient in, get them on that global platform, and get them back. Now, how do they do that in a fast, efficient way where quality is kept, efficiency is gained, and prices don't go up? It's classic manufacturing and logistics."
Despite Toral's enthusiasm, it's unclear who will come out on top in a global wave of consolidation. There are precedents for U.S. companies owning hospitals abroad: Tenet went on a building and buying spree across Asia and Australia through the 1980s and early 1990s, until it sold off its holdings in the wake of a merger at home. (Toral's boss at Bumrungrad, group CEO Curtis Schroeder, was the Tenet exec who oversaw its 40% stake in the hospital back then.) And the trend continues with top-tier U.S. medical schools (and global brands) such as Harvard and Johns Hopkins cutting deals to open dozens of hospitals and teaching programs abroad. Harvard now has partners in Mumbai, Seoul, Istanbul, Xinjiang, and Islamabad, to name a few, but its most ambitious creation by far is Dubai Healthcare City, a state-of-the-art complex staffed with the best equipment and doctors the ruling sheikh's money can buy. It's the brainchild of Dr. Robert Crone, former head of Harvard Medical International and now a managing director with the Huron Consulting Group in Chicago. "Institutions within the U.S. health-care system will have to think very creatively about how they can participate on a global basis," Crone told me. "The magic formula hasn't been developed yet."
The competition will be fierce. While I was in Thailand, the new CEO of the Bangkok Hospital (Bumrungrad's cross-town rival) mentioned he was interested in gaining a toehold in the States in order to guarantee a steady stream of patients: Give someone like him the sheikh of Dubai's money, and you might see sovereign wealth funds snatching up medical expertise much as China has been buying up our scrap metal.
Even if the roles of hunter and hunted have yet to be defined, there are clear winners and losers in Toral's scenario, which he sees unfolding over the next five years. The biggest losers by far would be American doctors -- especially cardiac and orthopedic surgeons -- who face the most damaging blow yet to their pride, public standing, and paychecks. In one fell swoop, they'd devolve from the rock stars of the OR to glorified mechanics, and they'd really only have themselves to blame. Overseas patients routinely return home raving about the personal attention shown by their Thai or Indian surgeons. Even before arriving, patients can trade phone calls and emails with doctors. (Nothing punctures the myth of American medical invincibility quite like the experience of having a doctor who actually speaks to you.)
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Recent Comments | 30 Total
April 18, 2008 at 12:13am by Healthbase Medical Tourism
Medical tourism is a rapidly growing industry and is here to stay until our domestic health care system is fixed and for as long as there is affordable care avaialble overseas which beats the US in quality. For more information about the process of medical tourism and to meet medical tourists, check out http://www.healthbase.com.
April 18, 2008 at 10:26am by Dirk Nuehouse
I used a company called PlanetHospital to help our 48 employees get affordable care and for the first time we did not see increased premiums in our healthcare costs. I am surprised they were not mentioned in this article.
April 19, 2008 at 12:14pm by Jeff Schult
I'm going to have to ask Ruben about the comparison to George Clooney -- he may never live that down! ;-)
Jeff Schult
Author, Beauty from Afar, the medical tourism book ...
April 25, 2008 at 3:25pm by Gabriel Biller
I am a graduate design student who worked last year on a project about this very topic:
http://www.gabrielbiller.com/pdfs/SPW_Expedia_Report_final.pdf.
As the son of a physician, I am certainly concerned about the idea of medical care being treated like any other manufactured product or service, but the reality is that we live in a flatter world than ever before, and our American system is screwed up. Administrative costs are out of control, and healthy competition is good for the end-users: the patients. We do have to face the facts that other people in the world can do things as well as or better than we can. And that medical care needs to be viewed as a larger system/experience of providing care and assistance to patients (not only in the hospital).
I would have liked to have seen some more details about WHY our costs are so high, which I understand to be the administrative costs (stupid insurance companies and hospitals and way too much paperwork and manpower devoted to pencil-pushing in order to avoid covering expenses) as well as a highly-litigious environment where doctors and hospitals have to protect themselves from lawsuits. I'm not saying that doctors don't ever make mistakes, but the reality is that nothing in life is guaranteed, so when people abuse their bodies and expect a doctor to make a quick fix but it doesn't work, something needs to be done about this mindset of Americans that they are entitled to 100% satisfied outcomes.
Does the author have anything to add about the legal rights of patients of globalized health care? Isn't it the case that those rights are much more limited than within the U.S.? Also, physicians make less money overseas, in general, than in the U.S. Does this mean a different quality of life for practitioners of this profession? Less respect?
April 29, 2008 at 1:03pm by jonathan edelheit
Anyone researching medical tourism should start with the Medical Tourism Association, which is the international non-profit association for the medical tourism industry. They also have an annual convention in San Francisco, September 9-12th of each year. www.medicaltravelauthority.com
May 4, 2008 at 1:48am by Carlos Perez
My sister needed dental work that would have cost her about $3000 (after insurance)in the U.S. She had visited several dentists in the U.S. and none could treat her problem (she needed extensive root canal, cap, etc) She contacted "New Medical Horizons" in NYC and they arranged her treatment in India which only cost $250. She said she didnt see any difference between her dental care in the U.S. and India (same knowledgeable dentist, same medical requipments, same dental procedures, etc).
In fact, she said that the dentist she visited in India was more concerned about about fixing her problem whereas in the states, the dentist(s) were more focused on immediate patch up treatments (maybe because they were trying to stay within the insurance budgets) that eventually left her in continued pain. Anyway, she is back and now pain free. Her dental work went smoothly and the dentist still personally emails her to make sure she is fine.
May 4, 2008 at 1:50am by Carlos Perez
My sister needed dental work that would have cost her about $3000 (after insurance)in the U.S. She had visited several dentists in the U.S. and none could treat her problem (she needed extensive root canal, cap, etc) She contacted "New Medical Horizons" in NYC and they arranged her treatment in India which only cost $250. She said she didnt see any difference between her dental care in the U.S. and India (same knowledgeable dentist, same medical requipments, same dental procedures, etc).
In fact, she said that the dentist she visited in India was more concerned about about fixing her problem whereas in the states, the dentist(s) were more focused on immediate patch up treatments (maybe because they were trying to stay within the insurance budgets) that eventually left her in continued pain. Anyway, she is back and now pain free. Her dental work went smoothly and the dentist still personally emails her to make sure she is fine.
May 6, 2008 at 11:56am by Robbie Neely
Two other reasons this trend is growing is 1) to avoid waiting lists, especially in Canada; and 2) to get access to procedures not commonly practiced in at home. Take the case of Kevin Stewart. He had a live liver transplant in India last August, facilitated by www.WorldMedAssist.com. He not only would have had to pay $350,000 in the U.S. but worse, he was in a waiting line for a liver from a deceased person that was longer than his life expectancy without a transplant. His sister donated a lobe of her liver to save Kevin Stewart's life. Listen to his story: http://www.worldmedassist.com/liver-transplant-India-video.htm.
An example of a procedure done more commonly overseas than in the US is hip resurfacing, a less radical alternative to hip replacement. This procedure was approved in the US only in 2006, so the track record of US doctors is nowhere near what it is in places like Belgium and India.
May 16, 2008 at 2:47am by John Hughes
In a globalized world, shopping for health care is an inevitability, and if travelling abroad for treatment should prove the best option, it becomes a natural consequence. As the article points out, perceptions on hospital care differ in different parts of the world and face value can sometimes prevail over medical standards. It’s important to do thorough research and a number of sites exist that can help:
www.discoverythailand.com/medical
www.travelfish.org/feature/63
www.tourismthailand.org/activities/general_information
www.medical-tourism-in-thailand.com/
www.en.wikipedia.org/wiki/Medical_tourism
May 26, 2008 at 12:58pm by Carter Newton
Terrific article and good comments. I am a cardiologist totally grossed out by the cost of medical services and pharmaceuticals and yet aware of how reduction of financial incentives leads to disinterested providers who will do poor work. So I don't support universal healthcare. But, here we have something of a free market in healthcare services. The idea of affordable fee for service, I had given up on the concept. But the more I think about it I would even think of working in an outsourced system: where the hospital and is a friend and not a foe and where a malpractice a ttourney is not lurking behind every bush.
May 27, 2008 at 9:47am by Scott Mills
I would like to have seen a sidebar on international legal remedies for medical procedures that do not go well for these medical tourists. If any of these people had an unfortunate result do they have the same legal avenues of restitution/retribution that are available in America?
It seems that we often hear the success stories of international medicine - what about the failures that require some legal remedy? And what is the legal exposure of employers who register employees for medical care that includes offshore major medical procedures offshore?
Americans need to understand that every medical procedure in America carries an inherent premium for potential legal involvement. Without this built-in premium our health care would cost noticeably less money. As we debate health care reform it is imperative that everyone recognize that healthcare reform also means tort reform.
June 5, 2008 at 1:38pm by Tim Tymchyshyn
it is strange on how our medical systems can't do anything without costing a fortune. maybe we are pricing ourselves out of the game instead of playing the game
August 28, 2008 at 6:02pm by Michelle Smith
Medical tourism has a bright future. with 45 million Americans uninsured, there does not see any other solution. www.MedicalTourismCo.com is one company that is addressing this growing oversear medical travel demand.
April 20, 2009 at 4:43pm by Michael Dunage
As more individuals become unemployed, the cost of Healthcare has remained very much the same. We speak to people everyday that tell us how they have been referred or told about the option of medical travel abroad to save a chunk of money. We facilitate the medical travel to and from the U.S. Canada as well as the UK. For more information about medical travel abroad for specific health concerns, please visit us at http://www.medpathgroup.com
July 13, 2009 at 3:41pm by Ken Fyre
Countries like Malaysia, South Africa, India and others are taking the lead in medical tourism, equipped with 5-star hotel treatment for recovery rooms, not to add that medical procedures could be a third of the cost of similar procedures in the U.S.
Health Classifieds | Local Doctor Reviews and Ratings
August 11, 2009 at 4:29am by Quincy Q
John Hughes, one of Hollywood's most successful directors and screen writers, whose movies during the 1980s helped to define that era and became cultural touchstones, has died at age 59. Hughes, who directed the "The Breakfast Club;" "Ferris Bueller's Day Off;" "Sixteen Candles", and "Planes, Trains and Automobiles," died of a heart attack during a walk while he visited family in Manhattan, according to reports.
September 4, 2009 at 12:27am by FMT Taiwan
At Formosa Medical Travel, we offer Americans the opportunity to receive a knee or hip replacement in Taiwan at a fraction of the price in the United States. While Thailand and Bumrungrad hospital have blazed a trail in the medical travel industry over the last few years, Taiwan is ready to enter the market as a viable option for medical tourists.
More medical tourism links:
Knee replacement cost | Knee replacement alternatives | Knee replacement India
September 16, 2009 at 7:37am by FMT Taiwan
It's unfortunate that medical tourism has been left out of the US Healthcare Reform debate. There are a number of intelligent people out there that believe little is being done to reduce the inherent costs in our system that make overseas care so attractive.
September 28, 2009 at 1:26am by Medical Tourism Companies
There are now a number of medical tourism companies that offer healthcare packages to many destinations around the world. Many of these companies don't charge any additional fees to the patient - instead, they take a commission percentage from the hospital. For patients looking to pursue medical travel, it is worth researching these "facilitation" companies.
September 30, 2009 at 10:16am by Pat Jewett
That fact that this is taking off speaks volumes. How can we not recognize that there is a problem with the US Health Care system if people are flocking overseas for treatment. As Medical insurance coverage gets debated in Washington, we need to let Congress know how we feel.