By Jessica Yarbrough,

Marketing & Communications Manager, Satori World Medical

Satori World Medical’s innovative global health care program continues to gain widespread interest among U.S. employers seeking innovative ways to reduce their employees’ medical expenses.

The company is also getting the attention of the news media. Satori World Medical was recently featured in several articles about medical tourism, including two well-known trade publications for U.S. health plan and employee benefit decision-makers called Inside Consumer-Directed Care (ICDC) and Best Practices in Compensation & Benefits.

While each of these articles provides a different perspective on medical tourism, the message in both is consistently clear – when it comes to employer-funded health care, reducing health care costs is the first and foremost priority for today’s U.S. companies, and global health care offers a very promising solution.

In the recent May 2009 Best Practices in Compensation & Benefits article featuring Satori World Medical, titled “Medical Tourism: Lower Costs, Higher Quality,” George McGregor, President of McGregor & Associates, an employee benefits consulting firm, explains why he chose to add Satori World Medical’s global health care network for their contracted employers and their employees.

McGregor says, “Southern California, where we do business, has basically become a cartel medical market. There has been so much consolidation, both at a physician level and at a hospital level that it has reached a point where individual employers no longer matter. Hospitals are able to dictate 30 percent year-over-year cost increases, all while the quality of health care is declining. There is a lack of quality in the existing system as medicine has become a commodity.”

 He continues, “Meanwhile, the rest of the world has openly embraced that need for care. There are hospitals internationally that have equal to or better results than their U.S. counterparts do, and they do it at 25 cents on the dollar. So for us, medical tourism is providing immediate access to high quality care at a much lower price.”

In fact, McGregor states that as a result of having just one participating employee undergo a surgical procedure through the Satori Global Network™, McGregor & Associates saved $38,000 in the very first month.

The ICDC article, ”Start-up Company Leverages HRAs to Help Employers and Their Workers Split the Savings From Medical Tourism”, offers a detailed explanation of how Satori World Medical’s program works and why it is different than anything else offered on the market.

While other medical tourism companies also promote their services as a benefit for employees enrolled in high-deductible health plans (HDHPs), Satori’s approach is unique in its shared-savings focus.

Employers can offer the Satori benefit to their employees without a deductible or copayment. When an employee chooses to use the benefit, Satori operates much as other medical tourism companies do by arranging for the procedure, travel and follow-up care. Satori also handles the entire billing process for the employer.

But the similarities end there. Using hip replacement surgery as an example, Lash says that while the procedure typically costs $60,000 in the U.S., with the patient paying $2,500 out of pocket, that same procedure, including travel and other related expenses, costs $20,000 at a Satori network hospital. The patient pays nothing for the procedure. And the employer and employee both share in the resulting $40,000 savings at a predetermined rate. Lash says that if the company returns a percentage of the savings to the employee, say 20%, the employer then deposits $8,000 into the employee’s HRA for future use. Or the employer could select a predetermined amount to be deposited in the employee’s account.

Lash says the advantages of this approach for the employer include being able to offer a 100% benefit to employees without a deductible or copay, and the ability to share in the savings. The HRA funds also are tax-deductible for the employer. And because HRAs are not portable, they can be used as an employee retention tool. Employees, meanwhile, can use the money deposited in their HRAs to offset future premiums, deductibles and other out-of-pocket costs.

With the ability to reduce an employee’s health care costs by an average 44-84 percent per procedure, including the costs of travel and accommodations for the patient and a companion, clearly this model makes sense. If you would like to learn more about Satori World Medical, please visit www.satoriworldmedical.com.

Also feel free to check out Satori World Medical’s recent media coverage by visiting Satori World Medical’s online media room.

Notes from my presentation at last week’s World Health Care Congress in DC

By Steven Lash, President & CEO of Satori World Medical

Last week, I attended the 6^th Annual 2009 World Health Care Congress (WHCC), Apr. 14-16, in Washington, DC, one of the year’s most important industry events for America’s health care executives. About 2,000 health care professionals attended this year, including CEOs, senior executives and government officials from the nation’s largest employers, hospitals, health systems, health plans, pharmaceutical and biotech companies, and leading government agencies.

To no surprise, the biggest theme of the event was the U.S. health care crisis and strategies around health care reform. It was evident throughout the conference that fundamental changes to our health care system are needed and innovations in health care delivery will be the driving force. Among the innovations presented at the conference was the concept of global health care, also known as medical tourism.

I actually had the opportunity to moderate a panel discussion on global health care at this year’s conference. The presentation specifically delved into the growing phenomenon of medical tourism, how and why more U.S. employers and payors are embracing global health care programs, and how to develop a successful international health care partnership.

Speakers on the panel also included former Aetna Medical Director, Charles Cutler, M.D., M.S., who is a member of Satori World Medical’s Medical Quality Advisory Board, and George McGregor, President & CEO of McGregor & Associates.

So for those of you who were unable to attend the conference, I wanted to share with you some of the most key points of our discussion:

·       Why the U.S. health care system is the most expensive in the world:  

Among the biggest problems responsible for America’s escalating health care costs are the rising costs of medical technology and prescription drugs, high administrative costs resulting from multiple complex payor systems, and the growing shift from non-profit to for-profit health care providers.

·       Why more and more U.S. employers, health plans and government agencies are embracing global health care:

With America’s health care system being the most expensive in the world, Americans are taking a serious look at cost-effective alternatives like medical tourism.

According to a 2008 Deloitte consumer survey on medical tourism, it is forecasted that six million Americans will travel outside the U.S. for quality and affordable medical care, and by 2011 medical tourism will become a $13.9 billion industry. Among the biggest reasons for the growing popularity of medical travel include the high quality of care now available in many hospitals around the world, the tremendous potential for cost savings, and a shift in consumers’ responsibility for their own health care expense.

·       How to choose the right global health care partner:

Not all global health care companies are the same, which is why it’s important that when embracing a medical tourism program, the employer or payor selects the right global health care partner.

Among the important qualities to look for in a global health care company include a high level of experience in international contracting, an incentive model that actually shares the financial savings with the employee, a program that does not require any startup, administrative or other participation costs to the employer or payor, and a superior quality assurance program (which also includes follow-up care) to ensure the highest level of patient care and overall experience.

·       Understanding some of the potential issues or challenges of adoption:

A medical tourism benefit program will only succeed if employees are willing to participate. Therefore, it’s essential for employers to be able to overcome concerns or issues that might prevent someone from receiving medical care outside the U.S. Among the most common issues are the lack of awareness or understanding about medical travel and its benefits, the patient’s concern of overall health care quality and safety, their understanding of what to expect when undergoing a surgical procedure abroad, and the ability to have a close friend or loved one as a travel companion to support them throughout their entire experience.

·       Why U.S. payors, as well, are embracing partnerships with global health care facilitators:

Many U.S. payors are also partnering with global health care companies to offer medical tourism as a benefit option to its members. But why don’t payors and health plans just create their own global health care network?

Well, for one reason, developing a high-quality global health care network is extremely costly and time-consuming. Additionally, as part of the quality assurance process, the payor or insurance company would have to actually travel to each of the international hospitals in its network to undergo due diligence site visits. Furthermore, contract negotiations are extremely time consuming and involve complicated legal concerns. On the other hand, vendors that can provide these services are a more efficient and cost effective solution for health plans.

In conclusion, while the medical tourism industry is just in its early stages, I’m thrilled to see that so many U.S. employers and payors are beginning to embrace the concept. That is the key to the industry’s growth and adoption. Education is also important which is why discussions like these are so critical.

By Jessica Yarbrough, Marketing & Communications Manager of Satori World Medical

Caught up in one of the largest economic fallouts in history, the big three U.S. automakers, General Motors (GM), Ford and Chrysler, are now faced with the quandary of how to continue health care benefits for well over one million employees and their families, including the tens of thousands of workers being forced into early retirement as a result of their massive layoffs.

Meanwhile, hundreds of thousands of GM retirees age 65 and over who were once promised medical benefits for life are now finding themselves without any health care coverage at all. On January 1, 2009, GM announced that it would cease providing health care insurance to employees and their families age 65 and over, once they become eligible for Medicare benefits.

The crushing burdens of medical costs have no doubt played a significant role in the decline of America’s top three automakers, currently placing them in an insolvent position. Case in point, GM’s retiree health care expenses alone add up to $50 billion a year, which is far more than what its government bailout can cover.

So what’s the solution, or does one even exist? We need to find a way to provide more Americans with access to quality health care that is also affordable. But how can we accomplish that when currently the U.S. health care system is the most expensive health care system in the world? One option for reducing the burden of healthcare cost the auto industry may want to consider is medical tourism, whereby American patients travel to international hospitals to receive quality and affordable medical care outside the U.S. In fact, according to Deloitte’s 2008 consumer study on medical tourism, it’s predicted that an estimated six million American patients will travel outside the U.S. for medical care by 2010.

Why? Well for starters, quality health care that rivals U.S. standards, is available in many nations around the world, including Singapore, Thailand, India, Turkey, Costa Rica, and Mexico. A U.S. patient can travel to an international hospital in India for a hip replacement and receive the same, if not better, quality of care, for a tenth of what it would cost to undergo that same procedure in the U.S.

Secondly, companies are now offering more incentives for employees to participate in global health care programs. Satori World Medical offers an innovative global health care program that shares the financial benefits of medical travel with all participants, including both employers and their employees.

By electing to receive surgery at any of Satori’s International Centers of Excellence an individual can obtain high quality medical care with no out-of-pocket expenses because the patients’ share of deductible, co-pay and co-insurance are waived. Additionally, they have the opportunity to share in the significant savings and receive thousands of dollars funded by their employer in a tax-advantaged Health (HRA). These funds can then be used to cover future medical expenses.

Furthermore, for large employers, such as the Big three automakers, by dramatically reducing their employees’ and retirees’ health care expenses, they are able to compete better globally, and at the same time offer a more competitive benefit package to their workforce.

Solving the auto industry’s health care crisis clearly will require fundamental changes and further innovations in healthcare delivery systems. A global medical benefit option is just one cost effective solution that can lower companies healthcare expenses, provide employees with an additional choice as to where to receive their health care and put real and meaningful dollars into consumers’ pockets.

Note: If you found this blog post interesting, you might also enjoy reading the following recent news articles.

“A Risky Bankruptcy Looms for GM,” BusinessWeek – 4/8/09

“Potential PBGC Problem: $13.5 Billion GM Liability,” Pensions & Investments – 4/6/09

“Retired GM workers concerned about health, pension benefits,” Fort-Star Telegram – 4/1/09

“Autoworkers Union Reaches Deal on Health Benefits with Ford,” Washington Post – 2/23/09

“Union Talks Seen as Key as G.M. makes Case for Funds,” New York Times – 2/16/09

By Ron Johnson, M.D., F.A.C.S., Chief Medical Officer, Satori World Medical

Travel for medical care outside of the US for the purpose of medical treatment (“medical tourism”) is a rapidly growing trend and is gaining a lot of attention by patients, employers and insurance companies. The American Medical Association (AMA) is the largest association of physicians in the United States and works to promote the art and science of medicine for the betterment of the public health. So what does the AMA have to say about this growing trend of medical tourism?

The AMA is a voluntary association of physicians in the US which sets standards for the medical profession and advocates on behalf of physicians and patients. After several years of study and discussion and many proposals and resolutions, the AMA addressed the issue of medical care outside the US at its 2008 Annual Meeting and issued a report and recommendations. The report noted long-standing AMA policy on pluralism supports the ability of patients to choose their treatment settings and providers. It also stated that medical care outside the US provides many advantages and the opportunity to learn from international competition.

The AMA adopted the Council on Medical Service Recommendations that “our AMA advocate that employers, insurance companies, and other entities that facilitate or incentivize medical care outside the US adhere to the following principles.”

1. Medical care outside the US must be voluntary.

2. The financial incentives to travel outside the US for medical care should not limit or restrict diagnostic, treatment or referral options.

3. Medical care should be limited to institutions that have been accredited by recognized international accrediting bodies (i.e. the Joint Commission International).

4. Prior to travel, local follow-up care should be arranged to ensure continuity of care when patients return from medical care outside the US.

5. Coverage should include the costs of necessary follow-up care in the US.

6. Patients should be informed of their rights and legal recourse prior to agreeing to travel.

7. Access to physician licensing and outcome data, as well as facility accreditation and outcomes data should be arranged.

8. Transfer of patient medical records to and from facilities outside the US should be consistent with HIPAA guidelines.

9. Patients choosing to travel outside the US for medical care should be provided with information about the potential risks of combining surgical procedures with long flights and vacation activities.

The AMA supports patient choice, wants it to be informed choice, sees many advantages in medical care outside the US and an opportunity to learn from international competition and recommends principles to provide the best care possible.

By Steven Lash, President & CEO of Satori World Medical

When Dr. Sanjay Gupta, CNN’s chief medical correspondent, was asked by Larry King on the March 5 episode of Larry King Live to comment on the Obama Administration’s health care reform plan and America’s current health care challenges, medical tourism was at the top of the list. Below is an excerpt of the transcript from the March 5 segment of Larry King Live. Dr. Gupta said:

He (President Obama) is drawing an inextricable relationship between the economy and health care. As people talk — the economy is issue No. 1, as we talk about all the time. But he’s making the point, I think, and he has been for some time, even while he was campaigning, that you cannot talk about the economy without talking about health care.

Businesses have to provide health care insurance for their employees. It is often very difficult for them to do that, in addition to trying to reach some sort of profit from their product. So I – that message, I think, has been pretty loud and clear, and I think it is resonating.

He’s also talking about the fact that you can’t fix the health care system without bringing down costs of health care overall. And since you brought it up, I was just in India, and one of the stories that I was doing was about medical tourism. Here is a good example — 750,000 Americans leave the United States every year to go abroad for life-saving operations. Why? Mainly because of cost. It can be up to a tenth of the cost in some of these countries such as India, such as Singapore.

Dr. Gupta is correct. The potential cost savings are enormous. Take open heart surgery, for instance. The cost of a heart-valve replacement surgery in a U.S. hospital can be anywhere from $60-$100K, yet that same procedure in India costs just a tenth of that, and while still meeting or even exceeding the patient care and quality standards and outcomes of  top U.S. hospitals. In fact, many of the doctors who perform heart surgery at international hospitals are U.S./U.K trained and Board Certified. Furthermore, the technology and equipment in these hospitals are absolutely state of the art.

So can global health care really help America’s troubled health care, and how?

Well I believe the answer to that question is yes.  As the medical travel industry begins to mature, we continue to see the following trends.

While medical travel will certainly never replace the need for quality, affordable health care in the U.S., it certainly offers many Americans a viable alternative to accessing high quality health care at a fraction of the cost than in the U.S.

1. President Obama’s health care reform program: At the top of President Barack Obama’s priority list for America is ensuring quality and affordable healthcare for all Americans. This will most certainly accelerate the acceptance and demand for medical travel and global health programs. 

2. Increased consumer education: More and more Americans are becoming educated about the high quality care that is available outside the U.S. Today’s health care consumers are becoming more informed, which has lessened the concern over patient quality and safety at international hospitals.

3. Industry’s expansion into employer-sponsored health plans: Medical travel programs, while once primarily catering to the uninsured market, are beginning to become available to U.S. employees as part of their employer-funded health plan. In fact, Satori World Medical has created the first global health care program that actually shares the financial savings with all stakeholders, including the employee.

The cost of undergoing a procedure through Satori World Medical is anywhere from 44 to 84% less expensive than in the U.S. (including the costs of travel and 4-star hotel accommodations for the patient and a companion) Therefore, by selecting the Satori Global Network™ for their surgical procedure, not only will the individual/employee not incur any out-of-pocket cost whatsoever but they will also have the opportunity to  receive thousands of dollars funded into a Health Reimbursement Account (HRA) that is established by their employer. These funds deposited into the HRA are tax-free to the employee and can be used to cover future medical expenses including premiums, deductibles, co-pays, and more.

4. Growing demand for Consumer-Driven Health Care: Americans are now demanding greater control over decisions that affect their health and medical care. “Employers, health plans and policymakers recognize that unless consumers are more engaged in decisions about their health and the costs associated with those decisions, costs will continue to soar.” (Deloitte)  High-deductible plans, skyrocketing premiums, and increasing co-pays and co-insurances are prompting patients to act more like traditional consumers.

5. Explosion of retiring baby boomers, also known as the “Silver Tsunami”: The first wave of the 80 million baby boomers heading towards retirement also referred to as the “Silver Tsunami” phenomenon, will result in a significant population shift and a considerable bulge in healthcare expenditures.

While medical travel will certainly never replace the need for quality, affordable health care in the U.S., it certainly offers many Americans a viable alternative to accessing high quality health care at a fraction of the cost than in the U.S.