Health care outsourcing to India was a $300 million business last year. And a just-released Health Affairs article indicates that the total market may be a lot, and I mean a LOT, bigger.
Health Affairs’ estimate covers all types of medical stuff, from data entry to clinical trials to CABGs (coronary arterial bypass grafts for the non-geeks). But, that’s just India. There are a few other countries that are also providing support via outsourced services – Ghana does data entry for claim forms, surgeries in Thailand, IT support in Ireland, internal organs from China (sorry about that last one).
But the really threatening outsource is the delivery of health care procedures to those who fly to far away places to get surgery. Quality looks to be high (mortality rate for CABG is <1%, compared to almost 3% for high volume CA hospitals. 88 overseas hospitals are accredited by the Joint Committee. Prices are excellent (JCI accredited facility in India – $5000 for a CABG; California high volume facility – $50,000). Patient satisfaction is really good.
The market share that looks to be on the table is pretty significant – by my calculations, over $5 billion in procedures that are now done in the US could be, and may well actually be, done overseas.
…and if you *really* want to get your mind blown, google “Dubai Healthcare City,” a 435- acre 4.1 million sq. ft. medical center being constructed primarily for the medical tourist, under the auspices of Harvard Medical International. Smaller, similar centers are under construction in Malaysia (Prince Court Medical Center) and India (Medicity). And later this year Mexico will be able to boast its first JCI-accredited hospital, which will finally put that country on the map as viable health travel destination.
While medical tourism isn’t for everyone, informed patients increasingly have choice, particularly among the un- and under-insured, where a decision to travel abroad for healthcare can mean the difference between having to re-finance a home, or deplete a retirement fund.