The United States is facing a growing crisis in the form of increasing medical care costs for both the insured and uninsured. One innovative strategy to address increasing costs is the use of medical tourism. Medical tourism is defined by the OECD as “the practice of travelling to another country to obtain medical treatment.” It has become an increasingly popular option as it offers patients the ability to access treatment outside of their home country, often at a lower cost. This chapter will provide a brief overview of medical tourism, its current and potential applications, and potential challenges and benefits associated with it as an innovative approach to address the healthcare crisis of high medical costs in some specific areas of treatment.
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The high cost of medical care in the United States has become a crisis for many individuals and households. In recent years, medical costs have risen dramatically. From 2008 to 2018, the average cost of employer-sponsored family health insurance increased by 55%, from $12,298 to $19,004 (Kaiser Family Foundation, 2018). This increase in medical costs has profoundly affected individuals and households, who often cannot afford health care coverage and services. In addition, the survey found that the average annual deductible for single coverage increased from $826 to $1,505 over the same period (Kaiser Family Foundation, 2018).
The high cost of medical care in the United States has profoundly impacted individuals and households (Centers for Disease Control and Prevention, 2015). The dramatic increase in the cost of employer-sponsored health insurance over the past decade has been particularly burdensome for many families (Centers for Disease Control and Prevention, 2015). The increase in out-of-pocket spending on healthcare services has also affected many households, particularly those with lower incomes (Centers for Medicare and Medicaid Services, 2018). Low-income individuals and households have been particularly hard-hit, with an increasing number of individuals reporting that they have skipped or delayed getting medical care due to cost (Centers for Disease Control and Prevention, 2015).
Medical Tourism is a rapidly growing segment of the healthcare industry. It represents an innovation that creates an alternative to the medical cost crisis in the U.S. It is projected to grow from $13.98 billion in 2021 to $53.51 billion in 2028, with an estimated 14 million people globally traveling to various countries to seek medical services (Fortune Business Insights, 2020). Patient care, safety, quality, affordability, and Very Important Person (VIP) services are just a few reasons why many American patients seek medical treatment abroad, particularly in Bangkok, Thailand (Health Tourism, n.d.). The comfort of a five-star hotel, lattes and Americanos from Starbucks, and exceptional customer service are what awaits tourists and why Thailand is one of the top destinations to seek medical treatment. Bangkok, Thailand, clinical quality and affordability are advancing 15%-20% faster than in most countries, including the United States (OECD, 2017). Thailand in the global medical tourism market (Finch, 2014). Medical tourism in Thailand has been steadily increasing since the early 2000s and has resulted in being placed at the top of the global medical tourism market (Health Tourism, n.d.). Thailand has over 1,000 hospitals, of which over 470 are private facilities, and of those, 37 have been accredited by the Joint Commission International (JCI) (Health Tourism, n.d.).
This new facility is the #2 ranked hospital in the country and performs the following procedures at 5% of what they would cost in the United States:
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Cosmetic surgery (breast, face, liposuction)
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Dentistry (cosmetic and reconstruction)
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Cardiology/cardiac surgery (bypass, valve replacement)
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Orthopedic surgery (hip replacement, resurfacing, knee replacement, joint surgery)
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Bariatric surgery (gastric bypass, gastric banding)
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Fertility/reproductive system (IVF, gender reassignment)
Hence, the increase in American tourism for medical procedures and treatments has affected the American Medical Industry because Americans have lost trust in the quality and high cost of performing these medical procedures and treatments sought after.