Medical Tourism: A Global Opportunity

Huy Nguyen

There is a Mongolian proverb that states, “Being sick, one thinks of the cure. Being healthy, one thinks of the cost.” Over the years, United States citizens have been slowly leaving the country to obtain cheaper health procedures in other countries. The term “medical tourist” has been given to these people, who in recent years have sought cheaper rates due to the rise in healthcare costs that are pushing high healthcare prices in the United States. Although the high costs are a problem to the United States, other countries such as Canada and Mexico are seeing effects of their own from these medical tourists. But what are these effects and are there risks for medical tourists in these countries? While these other countries are experiencing more patients and business, the United States has to struggle to keep its patients and to reform its healthcare system.

Causes of Medical Tourism

The rise in health costs in the United States is now too hefty for the average individual to afford.  This rise is primarily due to the increase in the price of prescription drugs and television advertisements that promote these products. As new drugs are being produced, several states are struggling to pay for patients because of the continuing rise of prescription drug costs (Petersen, 2002). The new biotechnology to produce drugs has led manufacturers to increase their prices, which has caused a growth in total drug sales. Even though the companies are receiving these high revenues, they are continuing to increase the number of consumer ads. These marketing expenses are made to pay a plethora of sales representatives who are promoting their products to doctors, nurses, hospitals, and managed care companies (Petersen, 2002).

Another reason for the rise in health costs is the aging population. “Healthcare expenditures increase with age and then escalate more sharply at ages 50-55” (Smith, 2003). Smith finds that health care expenditure increases with age and that the reliance on drugs forces this aging population to demand more. This population also prefers their own doctors and hospitals because of the relationship they develop with them, so they are less prone to question fees (Smith, 2003).

Healthcare costs have plagued Americans over the years, so they have found an alternative plan to overcome this problem. Americans have discovered that it is cheaper to travel out of the country, pay for their procedure, and become a tourist. “The United States is now exporting its own patients, many of them enticed by the promise of cheaper, more convenient and caring medical services” (Arellano, 2007). Medical tourism has taken off over the years and it has shown both positive and negative effects globally.

Effects of Medical Tourism

The subject of medical tourists in countries like India, Costa Rica, and Philippines is highly beneficial to their economies. These places are able to raise their revenues indirectly by taking advantage of the cheap health procedures. Tourists are spending their money to experience and tour the countries. To lure medical tourists, many countries offer incentives. “South Africa plays up the possibility of combining surgery and safaris, Hungary boasts that it has 100 thermal springs and 12 medicinal baths, and Thailand entices potential patients with photographs of beaches, temples and the famous Bangkok waterways” (Arellano, 2007).

Not only is there an increase in revenue, but there are more jobs being created in the tourism industry, such as hotel services and escorts for attractions. Medical tourism agencies are being created to help act as middlemen between patients and foreign physicians (Crawford, 2006). These agencies are able to find hospitals, schedule surgeries, buy airline tickets, reserve hotel rooms, and plan tours for recovering patients (Crawford, 2006).

The most important effect that has spawned out of medical tourism is the improvement in the countries’ trade status. These countries want to create international bonds with citizens of other nations by using this growing competitive market (Arellano, 2007). In creating these bonds, they are able to keep health professionals within their countries and improve their reputation (Arellano, 2007). As more countries begin to see how these places are money-pumping centers, they are more set to import and export goods with each other.

Although the deals are cheap and destinations exotic, the risks to one’s health may outweigh any cost savings (Arellano, 2007). If tourists go to countries to get cheaper health care, they should be informed about the procedure fully and the consequences that could follow it. Patients have little or no legal help in medical malpractice cases because of weak patient-protection laws in these countries (Yi, 2006). Paying for cheaper health services does not ensure quality medical care, and patients are sometimes paying for inferior services without a professional guarantee.

Individual patients are not the only people seeking affordable healthcare, but also United States employers. These employers are gaining interest in hiring consultants and medical tourism agencies to have their employees go abroad. Some employers are already sending their sick employees overseas for surgeries that would cost tens of thousands of dollars more in the United States (Yi, 2006). Of course, not all employers are taking action and going toward this method; some are opposed to this idea. California Hospital Assn. spokeswoman Jan Emerson says, “This is not the solution. In fact, this could make problems worse” (Yi, 2006). She emphasizes how hospitals depend on paying well-insured patients to support them from costly government regulations and low-paying government programs like Medicare and Medicaid (Yi, 2006).

Medical tourism has been slowly on the rise annually within the last five years. The number of medical tourists ranges from 150,000 to 500,000 annually. It has been hard to keep track of the people coming in and out of the country who are receiving medical care at their destinations because of the large amount of privacy given to these tourists. Although the number is hard to keep up with, data from foreign hospitals show that the number of medical tourists is growing. “By 2010, Americans are expected to help turn global medical tourism into a $40 billion-a-year industry” (Crawford, 2006).

Medical Tourism is continually growing as a moneymaker for countries accepting this trend, but the United States is the one mainly taking the blow. The United States is seeing it as a big hit to its economy as more Americans are becoming uninsured and leaving the country. Even though some residents of the countries that are accepting medical tourists think it is a big help to its economy, others think differently. They think the tourists will be more prioritized because they are better able to afford the health procedures than the residents living in that country. Arellano emphasizes, “There is a danger that luxury care for non-residents only serves to widen the gap between haves and have-nots” (Arellano, 2007). The focus slowly flows toward the tourists pumping the money into the country rather than to the actual residents.

Some Americans find that medical tourism is a temporary solution to a longstanding problem. These Americans are not actually becoming permanent medical tourists. Rather they are just waiting for the United States to compete against it. Carl Garrett says, “I think it is a great thing. Maybe it will drive down prices [of surgeries] here in the US” (Yi, 2006). Although prices might drop, people are going to find it hard to resist the healthcare market that is opening up to the variety of foreign medical travel.

Improving Healthcare Costs within the United States

The United States should find a way to cut healthcare costs to make it appealing to its citizens. This can be done by establishing a health care plan that would benefit the American citizens while still remaining affordable and competitive. Currently the 2008 Presidential Race is occurring in the United States and there are three potential Presidential Candidates that have their own views of how the healthcare problem should be tackled.

John McCain believes that competition is the solution. He finds it is the individual’s responsibility to set his or her own personal initiatives in targeting cheaper healthcare prices. He focuses on insurance reforms to increase its affordability and the variety of plans that citizens can choose from. Hillary Clinton believes in affordable, available, and reliable healthcare that can be obtained by anyone. She has the most experience with healthcare compared to other candidates and uses her past successes to give proof to her experience. Barack Obama also wants to make healthcare affordable and open to all citizens. He wants to promote healthcare to all uninsured individuals by lowering healthcare costs in health systems and prescription drugs.  A part of his healthcare plan is to provide better education for more doctors and better technology that would give optimum health benefits. The difference that stands out between Hillary Clinton and Barack Obama is the issue on mandates. “A mandate is a law that requires citizens to purchase health insurance and threatens punishment for those who do not” (Whitman, 2007). Hillary Clinton approves this law, but Barack Obama strongly disagrees. He believes that citizens should not be forced to purchase health insurance when some are already struggling with the costs of living. Each candidate has his or her own solutions to improve healthcare and is aiming at ways to ease the high cost of health services. By electing a leader capable of making educated moves and creating an effective healthcare plan, citizens can voice their opinion of how the healthcare costs should be dealt with.

Conclusion    

Current studies predict that as years progress, medical tourism will continue to grow. Future research will explain the progress and factors that will affect this trend. Whether it will be from the future president stepping in to take action or prices falling from low demand, healthcare and medical tourism will see a change in the future. In the meantime, countries will continue to see more medical tourists coming to their locations and with it, the money that is brought in with them.

I have found that medical tourism is a business opportunity for people to make money like finding a new job or investing in stocks. Even though it involves countries benefitting from the United States’ own problems, medical tourism was bound to become a growing idea in countries. Their views on how American citizens want more options for their healthcare have led them to create more jobs, increase their revenue, and enhance their reputation. Although countries are benefitting from medical tourism, I believe that the United States has to be able to provide its citizens with access to affordable healthcare to reduce the number of people leaving and to improve its reputation as a destination for foreigners seeking benefits of medical knowledge and advanced technology.

References

Arellano, A. (2007). Medical tourists - on the move and on the rise. Retrieved February 10, 2008, from http://www.citizen.org/printarticle.cfm?ID=17198.

Crawford, K. (2006, August, 3). Medical tourism agencies take operations overseas. Retrieved 2/11/08, from http://cnnmoney.printthis.clickability.com/pt/cpt?

action=cpt&title=Rx+ for+Clever+Startup.

Peterson, M. (2002, March, 8). TV ads spur a rise in prescription drug sales. Retrieved January 30, 2008, from http://query.nytimes.com/gst/fullpage.html?

res=9C00E7D81030F93 BA35750C0A96498.

Smith, N. (2003, September, 26). Aging population is driving rise in health costs, Novartis head says. Retrieved January 30, 2008, from http://web.mit.edu/newsoffice/2003/print/ novartis-print.html

Whitman, G. (2007 September). Hazards of the individual health care mandate. Retrieved April 8, 2008, from Individual Liberty, Free Markets, and Peace Web site: http://www.cato.org/pubs/policy_report/v29n5/cpr29n5-1.html

Yi, D. (2006, July 30). US employers look offshore for health care. Retrieved February 10, 2008, from http://www.truthout.org/cgi-

bin/artman/exec/view.cgi/62/21498/printer