In this month’s online issue of Agent’s Sales Journal, Steven Lash, President & CEO of Satori World Medical provides insight on what is in store for the medical travel industry in 2011.  Below is part of the feature “7 Markets in 2011: Industry Experts Predict the Future”.

Read the entire article in the online December issue of Agent’s Sales Journal here.

As we prepare to enter the New Year, there is one word that comes to mind when taking a look at projections in global health care: growth.

Health care as we know it is changing and those changes will be implemented during 2011. While many of the changes impacting global health care stem from U.S. health care reform, there are also paradigm shifts in the acceptance of medical travel as a realistic option for receiving high-quality medical care, and at the same time being responsive to lowering health care expense.

According to a report published in the August 2010 Journal of Health Affairs, physicians trained in other countries provide care that is just as good as U.S. doctors. The article reported that patients of foreign-born, internationally trained medical school graduates had the lowest death rates. Patients of U.S. citizens who attended medical school in other countries had the highest death rates; U.S.-born and trained doctors fell in the middle. Moreover, 25 percent of all doctors practicing in the United States are educated abroad.

Due to these findings and the ethnic diversity in the United States, more consumers are accepting medical travel as a viable ay to receive high-quality health care. Medical tourism, also called medical travel and global health care, has seen steady growth in the past three years. Industry experts anticipate the growth to continue at a 35 percent year-over-year growth rate.

In this month’s issue of Agent’s Sales Journal, Satori World Medical provides insight on why medical travel is a viable option for every health plan.  Below is part of the article “Innovations in Employer-Funded Health Care: Medical Tourism”.

Read the entire article in the November issue of Agent’s Sales Journal, or read it online at: http://www.asjonline.com/Exclusives/2010/11/Pages/Innovations-in-EmployerFunded-Health-Care-Medical-Tourism-.aspx

The passage of the Patient Protection and Affordable Care Act (PPACA) addresses access, but most health care economists agree that medical expenses will continue to rise. As this happens, more employers will be forced to shift a larger portion of health care costs to their employees in order to remain profitable. Medical travel, which has received increased interest from U.S. residents and employers, is now a highly attractive and viable option to businesses and their employees that may help consumers deal with the increased load that they must bear.

Medical travel defined

The practice of travelling across international borders to obtain health care – medical travel, also known as medical tourism or global health care – has increased significantly in popularity over the past decade. Travelers seek both elective and specialized surgical procedures, such as joint replacement; cardiac, bariatric, and cosmetic procedures; and major dental work.

A number of factors are driving this trend, including:

• The high quality of international medical care and the ability to reduce a U.S. patient’s out-of-pocket expenses for typically high-cost surgical procedures
• The cultural diversity of the US workforce
• The ease of the adoption and integration of global health care benefits into a plan design

Below is part of the article, “Healthcare Reform: Driving a Trend Toward Medical Travel” which was featured in the October issue of California Broker Magazine. Read the entire article in last month’s issue of California Broker Magazine, or read it online here: http://www.calbrokermag.com/october-2010-california-broker/#medicaltourism

The Patient Protection and Affordability Care Act (PPACA) is being phased in over many years with many provisions not becoming fully effective until 2014. But, we are already seeing the changes it will bring to businesses, insurance companies, and consumers. It will address access to healthcare, but most healthcare economists agree that medical expenses will keep rising.

As healthcare expenses continue to increase, more employers are being forced to shift a larger portion of healthcare costs to their employees. Medical travel is a highly attractive healthcare option for businesses and employees and it has been getting more interest from U.S. residents.

Understanding Medical Travel

Medical travel, also known as “medical tourism” or “global healthcare,” is not new, but it has become much more popular over the past decade. Simply stated, it is the practice of traveling across international borders to get healthcare. Travelers seek specialized elective surgical procedures, such as joint replacement, cardiac surgery, bariatric surgery, cosmetic procedures, and major dental work.

Some of the world’s emerging economic powerhouses are focusing on medical travel to help drive their economic expansion and employ their highly educated and skilled work force.

By Angie Robert, Director of Marketing & Communications at Satori World Medical

Last Thursday we launched the first issue of Medical Travel Market Watch, an electronic newsletter aimed at providing information on the medical travel industry. The latest issue covered the hot topic of health care reform, in addition to information on hospitals and physicians, health and travel tips and news specific to Satori World Medical. Medical Travel Market Watch will be distributed electronically on the first Thursday of every other month.

Below is part of the President’s Perspective segment from the current issue. To read the entire newsletter click here or to automatically receive Medical Travel Market Watch in your inbox six times a year, visit the home page of www.satoriworldmedical.com and enter an e-mail address in the newsletter sign-up field.  

As we head into the fall election cycle I would like to offer my perspective on the health care reform legislation (The Patient Protection and Affordable Care Act – PPACA) that was signed into law by President Obama in March 2010 and how the reform measure affects Satori World Medical.

The changes in legislation will offer both positive and negative impacts to U.S. businesses. One of the benefits of the legislation is that we now know how the future of health care is going to be shaped. There are a specific set of deliverables and timetables that have been set.

With the completion of PPACA, businesses are focused again at looking for measures to save on rising health care costs. Because of this, businesses are starting to see a place in their employee benefit plans for medical travel.

With the addition of 40 million Americans, having access to health insurance there will be increased demand for health care services. You couple that with an existing shortage of nurses and doctors, queuing for medical care will be a natural by-product.

As the time to see a specialist increases, more individuals will seek to get immediate help through medical travel. Employers and employees will come to understand the high-quality health care that is available to them internationally as they look to end pain and ill health.

Click here to read the full article.

By Angie Robert, Director of Marketing & Communications at Satori World Medical

Publication Gives Voice to Industry, Provides Company News

Josef Woodman, author of the first comprehensive guide to medical tourism “Patients Beyond Borders”, recognized expert in the medical tourism industry, and member of Satori World Medical’s Strategic Advisory Board shares his thoughts on how the landmark healthcare reform bill will affect the medical tourism industry.

First Thoughts on the Dawnings of Healthcare Reform: How the Patient Protection and Affordable Care Act Is Likely to Affect Medical Tourism

Author: Josef Woodman, Patients Beyond Borders; CEO, Healthy Travel Media, LLC

Over the course of the past several months, and particularly since the recent signing of the Patient Protection and Affordable Care Act (otherwise informally known as the Healthcare Reform Bill), I’ve been asked by media and industry people how this new and landmark legislation will affect cross-border medical travel.

The short answer is: who knows?  Most components of the Act take effect gradually, and implementation is likely to be glacial.  At this point it’s not clear the Act will stand, as more than 14 states have now filed lawsuits challenging its constitutionality.  Additional challenges are sure to arise, further muddying the already roiled waters.

Should the Act remain in place, we will undoubtedly see increased burdens on our already groaning healthcare infrastructure.  In accommodating 30+ million new healthcare consumers, all but the wealthiest Americans will likely experience an increased and acute shortage of primary care physicians, nurses, and administrative staff, resulting in longer waits for treatment.  Thus, while the number of uninsured American patients will decrease, the ranks of the underinsured will rise dramatically, as limited resources are triaged by insurers and providers across the healthcare reform landscape. 

In short, the US healthcare system under healthcare reform will likely morph into more of a public-private system found in the UK, and emerging in Canada.  Not unlike the US education system, we’ll see lower cost—albeit less accessible— public care for those who cannot otherwise afford more expensive private care, financed by luxury insurance plans, concierge services or out-of-pocket payments.

To avoid the scenarios experienced by overburdened government-regulated healthcare systems in the UK, Canada and Germany, US insurers and providers would be prudent to take proactive measures.  Thinking globally wouldn’t hurt.  For example, to help mitigate the pressures of our over-burdened healthcare system, US insurers might aggressively accelerate efforts to include cross-border treatment plans for American-accredited facilities overseas. Cost savings can be substantial, even at the wholesale rates.  In like manner, leading US providers should be aggressively planning the build-out of more cost-efficient international facilities and/or creating sustainable affiliations with JCI-accredited hospitals abroad.

With or without healthcare reform, most Americans will in the coming months and years experience compacted access to the relative luxury of quality care their mothers and fathers enjoyed.  However, greater transparencies in quality assurance, cost-comparison and patient satisfaction data will lead consumers to an impressive array of informed, cost-effective choices for medical care, often international in scope.

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

Last Tuesday’s 14-9 vote in the Senate Finance Committee to move the fifth and final healthcare reform proposal through the panel brought the nation closer than ever before to assuring quality and affordable healthcare coverage for all Americans.

An important provision of the healthcare reform program is to create a new insurance marketplace – the Exchange – that allows people without insurance and small businesses to compare plans and buy insurance at competitive prices. Additionally, new tax credits will be provided to help people purchase insurance and to help small businesses cover their employees.

“The Obama Plan: Stability & Security for all Americans” summarizes the Obama Administration’s key objectives for comprehensive health reform:

• Reduce long-term growth of healthcare costs for businesses and government
• Protect families from bankruptcy or debt because of healthcare costs
• Guarantee choice of doctors and health plans
• Invest in prevention and wellness
• Improve patient safety and quality of care
• Assure affordable, quality health coverage for all Americans
• Maintain coverage when individuals change or lose their job
• End barriers to coverage for people with pre-existing medical conditions

So how does global healthcare fit in?

As an active member of the global healthcare industry, one key topic of debate has been how healthcare reform will affect the demand for global healthcare programs.

In looking at how well aligned the guiding principles of medical travel are with the objectives of U.S. healthcare reform, I’m even more confident that medical travel will continue to play an integral role in bringing quality, affordable healthcare to Americans.

President Obama’s proposed $900 billion healthcare reform package promises to control rising healthcare costs, guarantee choice of doctor, and ensure high-quality healthcare. Each of these key objectives is achieved by global healthcare programs, such as Satori World Medical.

• Ability to control rising healthcare costs: The costs of healthcare internationally are substantially lower than the costs of comparable care in U.S. hospitals, on average 40-80 percent less per procedure (which factors in the costs of travel and accommodations for the patient and a companion). As such, medical travel programs offer employers the opportunity to control the rising costs of healthcare and make affordable healthcare options available to their employees.

Satori World Medical, for example, is designed to be added to any employee benefit plan design at no cost to the employer. Additionally, the employee receiving care through the Satori Global Network™ is provided with a 100 percent medical benefit, which includes no responsibility for any of out-of-pocket expenses, such as co-pays, deductibles, etc. One feature that is also unique only to Satori World Medical is the ability for employers to share a portion of the savings of global healthcare with their employee who elects to receive care through the Satori Global Network™. Typically, the employer will deposit funds into the employee’s Health Reimbursement Account (HRA). The deposits in the HRA are tax-free to the employee and tax-deductible to the employer. The funds deposited can then be used by the employee to offset his or her future out-of-pocket medical expenses.

• Ensure High-Quality Care: The growing access to high-quality medical care outside the U.S. has been one of the most important reasons for the increased interest in medical travel programs in the U.S. There are more than 200 Joint Commission International (JCI)-accredited hospitals around the world, many of which have quality standards that rival leading U.S. hospitals. These institutions are staffed by U.S./U.K. or equivalently trained and Board Certified physicians and registered nurses that are fluent in English. They also offer state-of-the-art medical equipment and techniques, spacious private rooms with modern amenities, and excellent patient care and quality outcomes. Therefore, while the costs of care internationally are significantly lower than in the U.S., patients still have access to some of the best care in the world.

As U.S. healthcare reform becomes a closer reality for America, I am optimistic that the fundamental changes it offers will only further fuel the demand for global healthcare programs.

By Keith Mendoza, Director of Sales Satori World Medical

Experts say that consumer-driven healthcare will continue to play an important role in U.S. Healthcare Reform by helping to contain healthcare costs across the board, while giving consumers more control over their own healthcare choices and expenses.

According to a recent study of 589 large U.S. employers, conducted by Watson Wyatt and the National Business Group on Health, more U.S. employers say they will offer consumer-directed health plans (CDHPs) in 2010 in order to help control employees’ healthcare costs. A CDHP is an insurance coverage option with a high deductible that is typically combined with a tax-advantaged Health Reimbursement Account (HRA), funded by the employer or Health Savings Account (HSA), funded by the employer or employee.

The study found that 51 percent of companies now offer workers a CDHP, up from 47 percent in 2008. These plans invite workers to choose from insurance coverage with a menu that usually makes the cost of medical care clear. There are currently an estimated 160 million Americans (nearly half of the population) who receive health insurance through an employer.

Another study by CIGNA revealed that more than 400,000 client employees found the ultimate cost of health coverage for both the employer and employee was typically 13 percent less for those enrolled in a CDHP than for those with a Preferred Provider Organization (PPO) or Health Maintenance Organization (HMO).

The growing adoption of CDHPs among U.S. employers, in particular, has created an extremely bright opportunity and future for the medical tourism industry. An example of medical tourism is when American employees travel to countries outside the U.S. to receive high-quality healthcare at a fraction of the cost.

Satori World Medical has created the industry’s first global healthcare program whereby U.S. employees actually participate directly in the economic benefits of medical travel. Through the Satori program, for the first time ever, employees are eligible to receive thousands through an employer-funded HRA or HSA by undergoing certain surgical procedures through any of the Joint Commission International (JCI)-accredited hospitals with the Satori Global Network™. Qualifying procedures include cardiac, orthopedic and spinal surgeries, just to name a few, that are typically cost-prohibitive within the domestic hospital system.

Additionally, there is no monthly or fixed cost to the employer or payor to integrate the Satori Global Network™ into their existing health plan design. On average, the cost savings per procedure, range anywhere from 40-80 percent through Satori’s program, including the costs for travel and hotel accommodations for the patient and a companion.

So how do medical travel programs like Satori World Medical specifically fit into CDHPs?

Well for one, they offer healthcare consumers the ultimate choice of quality care and control over their healthcare cost, which is the primary premise of CDHPs.

Medical travel programs offer tremendous cost savings, which will only further accelerate the adoption of CDHPs. Global healthcare programs are proven to dramatically reduce the cost of healthcare across the board for all participants – U.S. employers, payors, and employees.

Finally, it is important to recognize that both above cost and quality objectives are achieved through medical travel programs.  In fact, all of the hospitals in the Satori Global Network™ are JCI-accredited, staffed by doctors that are U.S./U.K. or equivalently trained and Board Certified, and offer some of the best medical care and technology available anywhere in the world.

As we continue to explore and find ways to provide more Americans with access to quality and affordable healthcare, it is very promising to see the growing mainstream demand for and success of progressive options like CDHPs and globalized healthcare.

By Steven Lash, President & CEO, Satori World Medical

America’s crippling healthcare costs, coupled with the availability of high-quality medical care in other parts of the world at a fraction of the cost than in the U.S., are just a couple of the key factors fueling an increased national interest in medical tourism.

As the industry continues to mature, more U.S. employers are beginning to offer medical travel programs to their employees as part of their health insurance.  As President & CEO of Satori World Medical, the leading global healthcare company, I am often asked to provide insight into why every employer isn’t offering a medical travel program in their benefit plan design.  It is evident that there is high quality, cost effective health care available outside the U.S, however, common concerns over medical quality, patient safety and a general lack of understanding about medical travel and the differences that exist among the various facilitators, seem to be challenges to widespread adoption. That of course then raises the question:  How are these challenges overcome? So, let’s explore each of these specific concerns, and their possible solutions.

Medical quality and the lack of universal quality standards in place for medical travel:  There are well-respected regulatory agencies around the world, such as Joint Commission International (JCI), established to ensure high-quality standards in medical care at international hospitals. However, medical travel companies and international hospitals are not actually required to meet any specific universal set of quality guidelines. So how does one ensure the quality of care for a patient undergoing surgery in a foreign hospital? Well the answer to that question is to be well informed about the specific quality assurance programs that different medical travel companies offer.  Only participate in a global healthcare program that SOLELY contracts with JCI-accredited hospitals, conducts regular on-site due diligence visits to every international hospital within its network, and has a full-time Chief Medical Officer on staff that is a Board Certified surgeon.

Lenient malpractice laws in some foreign countries and financial protection if something goes wrong: Another common concern among patients considering medical travel is built-in protection from an unforeseen health complication that might take place while they are traveling or receiving care in a foreign hospital. Patients should protect themselves from such risks by 1) participating in a program like Satori World Medical, which follows the same quality standards as today’s leading domestic health networks and 2) verifying that the company offers a comprehensive personal accident insurance policy in the unlikely event that something goes wrong.

The stresses and safety of international travel and long flights: Patients also commonly fear the stresses and health issues that can occur when traveling to foreign countries or taking long flights. Patients can avoid this problem by choosing a medical travel company or program that does all of the planning and legwork. A couple of important questions to ask include:

-   Does the company offer a comprehensive, preliminary medical screening of all patients to assess their overall health and determine whether they are eligible candidates for medical travel? If so, what does that process entail?

-   What are the types and levels of services provided to ensure a comfortable and safe medical travel experience? For instance, only work with a company that handles all details for patients and their travel companion, such as making flight reservations and hotel accommodations, arranging ground transfers to/from the airport, etc. Also, inquire about whether the program covers the cost of a travel companion. Travel companions are important to helping medical travel patients feel safe and comfortable.

When it comes to all matters of healthcare, knowledge is the key to success. While there are certainly understandable concerns surrounding medical travel, with the right information and decisions, medical tourism can be an extremely safe and viable cost-saving option for many U.S. companies.

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

Year after year, U.S. employers continue to face double-digit rate increases on health insurance premiums.  Since 2000, the majority of employers have seen costs increase 100 percent or more in order to offer their employees a comprehensive medical plan.  Their increases are not linked to new coverage or benefits, just renewals.

What new strategy can be implemented to help reduce plan sponsor cost without increasing employees’ out-of- pocket expenses or restricting access to quality providers of their choice?

Medical tourism or medical travel, whereby U.S. patients travel outside the U.S. to receive quality medical care at a fraction of the cost, is a benefit strategy that employers are using to achieve lower claim costs on a medical plan, provide additional choice of providers, and engage and reward consumerism within the scope of their existing medical benefit plan.

The key word is choice.  Plan sponsors now offer their employees a choice of domestic network providers and networks provide plan sponsors with discounts of 20-40 percent off providers’ “retail” prices. The benefit plan provides incentives to use lower-cost participating network medical providers over often more expensive, non-participating medical providers.

Satori World Medical, a global health care company specializing in the medical travel space, offers an all-inclusive plan that waives all the out-of-pocket expenses for the employee when choosing a Satori Global Network™ hospital and physician.  Additionally, using a proprietary model, Satori World Medical helps clients design a shared savings feature whereby the employer would share a portion of the $30,000 to $75,000 savings for their surgical procedure through a Health Reimbursement Account (HRA) contribution to the employee.  The HRA is tax-free to the employee and tax-deductible to the employer.  On average, the total cost savings of participating in Satori World Medical’s global health care network are as much as 40-80 percent per procedure, which is extremely compelling.  Additionally, medical travel programs, like Satori, can be offered as an additional benefit to any existing health plan design, and does not replace any domestic provider choice.

Of course employees are only going to travel abroad for medical care if the quality of care is comparable or better than in the U.S.  The global economy has grown, and as a result, competition to provide the best possible health care services, has also grown.  Just as high-quality products and technologies are produced across the globe, and organizations purchase various goods and services from international companies based on price and quality, so too are a number of high quality hospitals and physicians and medical services now available globally.

Companies like Satori World Medical, which specialize in medical tourism, are now making it easier for employers and payors to embrace global health care programs because they have already built the infrastructure, performed the due diligence, and provided contracts that can be supported by U.S. third -party payors.

With the cost of healthcare and health insurance premiums being higher than in any other nation in the world, it is the right time to embrace innovative, cost-saving alternatives like medical tourism. As the industry emerges, we see that the interest in global health care among American companies will continue to grow significantly.