Transcript Document

Global Post’s
What Obama’s Affordable Care
Act Means for the World’s
Hospitals
by Matt Levin
Chelsea Swanhorst
Background
Medical Tourism:
– People who live in one country
travel to another country to
receive medical, dental, and
surgical care…and are traveling
for medical care because of
affordability, better access to care
or a higher level of quality care. *
– Thrives on uninsured US citizens
* Medical Tourism Association
Background
The Affordable Care Act
– 2014 all US citizens are required to have health insurance
– Affordable Insurance Exchange
– Citizens may opt out for a fee
Affordable Care Act Fees
Year
Price Per Adult
Price Per Child
2014
$95
$47.50
2015
$325
$162.50
2016
$695
$347.50
Healthcare.gov
Article Summary:
What Obama’s Affordable Care Act Means for the World’s Hospitals
3 Main Ways Obamacare Affects the Medical Tourism Industry
1. May hurt the industry
2. Big changes in America’s healthcare: doctor shortages, longer
hospital waits, and insurance company extending coverage
3. Paying fee may be cheaper
My Opinion
1. Americans will be unhappy with outsourcing healthcare
2. Lack of confidence in Costa Rica’s healthcare institutions
Outsourcing Healthcare
 Surgeons and physicians in
Costa Rica are educated in
the US
 US citizens travel to Costa
Rica to receive this care
 Each country has a
comparative advantage
Healthcare in Costa Rica: Life Expectancy Rate
 Costa Rica’s life expectancy 79.2 (2010)
 US’s life expectancy was 78.2 (2010)
Worldbank
Healthcare in Costa Rica: Confidence Level
 No official regulatory body overseeing
the medical tourism industry
 American Medical Association has
guidelines*
 Joint Commission International, JCI**
 Accredited two hospitals in Costa Rica
 Post-op resorts pick up patients from
airport and provides transportation to
the patient and family
* www.ama-assn.org/ama1/pub/upload/mm/31/medicaltourism.pdf
**www.jointcommissioninternational.org/JCI-Accredited-Organizations/
Non-Tariff Barriers
 Pros of regulation:
 Increases confidence
 Increases higher education, medical
tourism, and other industries through
the roundabout way
 Cons of too much regulation:
 Promotes inefficiencies
 Creates obstacles for patients
 Hurts higher education, medical
tourism, and other industries through
the roundabout way
Procedures
 Obamacare will not affect dental work, elective surgeries, &
operations not offered in the US
 These procedures are most common in Costa Rica
 Emergency surgeries can’t be performed internationally
English
International Patients
Prices
Medical Procedure
USA
Costa Rica
Heart Bypass
$144,000
$25,000
Knee Replacement
$50,000
$12,500
Face Lift
$15,000
$5,700
Liposuction
$9,000
$3,900
www.medicaltourism.com/en/compare-costs.html
Benefits to Costa Rica’s Economy
 American patients stay longer and spend six times as much
money versus American tourists
 Family comes before procedure
 Family stays to help recovery
Benefits to Costa Rica’s Economy
 Promed, medical tourism agents
 67% of Costa Rica’s GDP is commerce, tourism, and services*
 Tourism needs to be a sustainable industry
*www.state.gov/r/pa/ei/bgn/2019.htm
My Conclusion
 Not just a fad
 US isn’t competitive in healthcare industry
 US healthcare industry cannot be completely eliminated
 Benefits developing countries
 Non-tariff barriers are largest threat
 Regulations are necessary
Questions?