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Could medical tourism trend parallel fate of Detroit car industry?

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Here's an interesting take on medical tourism from the perspective of another business--the spa industry. Apparently, spa business executives are keeping a close watch on medical tourism, which they believe to be a good fit with international spa expansion. And as an editor with consumer spa site SpaFinder.com notes, spas and high-end medical services help each other grow their business. More importantly, they could be the means by which American healthcare providers are outfoxed, suggests editor Susie Ellis.

Ellis says that most mainstream American journalists view medical tourism with skepticism, noting that U.S. hospitals lose revenue needed to subsidize unprofitable services every time people get treated overseas; suggesting that there's not enough oversight in foreign lands to guarantee high-quality care; and contending that poor people in other countries are essentially subsidizing the cost of care for prosperous Americans.

For her part, Ellis says that American providers should beware of this competition. She argues that if foreign providers are far less costly and offer comparable quality, the U.S. healthcare industry could suffer a fate similar to that of the Detroit auto industry, which was trumped by foreign manufacturers. In fact, she says that healthcare executives should think "U.S. car industry" every time they hear "medical tourism." Though she may be exaggerating a bit, this definitely leaves us with something to chew on, no?

To read Ellis' column:
- read this SpaFinder.com blog

Related Articles:
WellPoint begins paying for medical tourism
Study: Substantial minority of Americans would try medical tourism
Middlemen take uncertainty out of medical tourism

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Comments

What great insight. I always felt we did not fully understand what Globalization was altimately about. In the first step was a direct hit on the manufacturing jobs that ran in the $40-$100 per hour range. Then came outsourcing of knowledge based industries such as IT which then spread to Accouting and etc. What you identified is that Globalization will force the US to adjust ALL levels of compensation and not just a few.

When you look at the Health Care Problems it will all come down to cost of employment or services.

It looks like everyone will have to adjust to reflect a global pay scale.

While the cost of services by physicians is not significantly higher here than in India or Thailand,they have an edge because the hospital charges are very low. They also do what is necessary because they don't have legal hassles, administrators, and high school "graduates" telling them how to practice medicine. Over there..nurses practice nursing and Doctors practice Medicine .. roles are well defined., they don;t have to put up with anointed quacks

I agree with Ms. Ellis' observation.

I must also add that we, in America, are still living with the false belief that we are the best at everything. We ignore our failures, and look for negative reasons (for example, there is not enough oversight to assure a good medical outcome) for why the success of others should not exist. We ignore the fact that success is directly proportionate to demand, and demand is intricately linked to outcome.

Patrotism is one thing, but blind stupidity is another.Organized labor have focused more on high wages while sacrificing quality, and then we use patriotism to support the mistake. In the mean time, other countries are focusing on quality, outcome performance, and economic functionality.

When seniors found out that they could go to Canada and purchase medications, that are identical to US medications, for a much cheaper price, our government claimed that the drugs could be inferior due to the lack of oversight, and shut down the process. Now we are complaining about the cost of health care. There are no real plans to effectively bring down cost without sacrificing quality.
Tourism medicine, in India for example, is designed around quality outcome first, and price second.
The facts are; there would be no medical tourism without medical tourists. Americans complain about cheap labor when eployment rates and GDP go up, and economies expand in foreign countries while we have expensive labor, high unemployment, and a contracting economy. What is wrong with this picture?

Instead of thinking US car industry, be accountable and think "sustainable competitive strategy" nad "input over destiny".

That really is an interesting article. Thank you very much. Medical tourism can indeed be a very important topic.

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