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.