Medical tourism could cure high costs

Jennifer Blankenship needed stem-cell therapy for her multiple sclerosis, medical care that was going to cost more than $100,000 if she received it in the United States.

Blankenship, a Lakewood resident, turned to the Internet to see if she could find less expensive treatment. That led her to BridgeHealth International in Denver, a medical tourism company that put her in touch with a hospital in Costa Rica where she could get the same therapy for $7,000.

Blankenship, who will travel to Costa Rica in August, said the experience so far has been a good one.

“(The BridgeHealth consultant) took care of everything,” Blankenship said. “She called the doctor and set up the place. They took care of everything, and I had many, many questions. She was just delightful.”

Blankenship is one of a growing number of Americans who are deciding to travel to other countries to get health care in the expanding world of medical tourism. With constantly rising health-care costs in the United States and an increasing number of overseas hospitals now having the latest state-of-the-art medical equipment and fewer restrictions on the services they offer, many Americans are traveling abroad to get cheaper medical care and do a little sightseeing with the money they’re saving.

Vic Lazzaro, CEO and co-founder of BridgeHealth International, said his firm last year acquired Medical Tours International – in business since 2002 – and has provided medical care and travel arrangements for “thousands” of patients.

Lazzaro said getting more affordable health care is the main reason medical tourism is becoming more popular, but the tourism part of the experience is also attractive for some.

Big savings

“We find about 30 percent of people going abroad ask about tourism,” he said. “It’s like, ‘I saved $40,000, so what’s $3,000 more?'”

And with many health-care destinations in places like Costa Rica, Brazil, China, India, South Korea, Thailand and Turkey, there’s an appeal for those who’d like to tuck in an exotic vacation as part of their travel.

Lazzaro notes that many physicians and surgeons in these countries have been trained in the United States and Western countries and have access to the best equipment available.

“These doctors are very well educated and extremely experienced,” he said. “In many of these countries there are a handful of truly superior hospitals and the equipment is international class. In fact, in many cases it’s even newer than most places in the U.S.”

Some destinations are becoming known for particular specialties when it comes to medical care. Costa Rica is a top spot for North American patients wishing to avoid a trans-oceanic flight and has garnered a reputation as a mecca for plastic surgery.

South Africa and Argentina are also popular plastic surgery destinations, while Thailand is the preferred destination for sex-change surgery. Heart-valve replacement surgery in India costs about $10,000 compared to $200,000 or more in the U.S.

Lazzaro said medical travelers can save generally “somewhere between 30 to 80 percent” compared to what the same services would cost in the States, even though they routinely pay entirely out of pocket.

Lazzaro said most American insurance companies are still on the fence when it comes to paying for offshore treatments.

Insurance companies look

“American insurance companies are mostly not offering it, but they’re beginning to look at it,” he said. “It’s not yet widespread among insurers or employers but it is for consumers. Our goal is to get insurers and employers to become interested.”

Daryl Richard, vice president of communications for UnitedHealth International, said he believes insurance companies will likely start coming on board.

“The medical travel phenomenon is still more or less in its infancy,” he said. “However, as our world becomes increasingly global, the health-care market must adapt. We believe we have an obligation of sorts to explore this trend, both to serve the potential needs of our clients as well as to address the needs of the un- and underinsured.”

Richard said some obstacles remain before medical tourism can really take off. He said the “top 20 or so foreign hospitals are at 80 to 90 percent capacity on a given day,” which would not permit the treatment of a surge of additional Western patients.

Richard also notes “cultural barriers” regarding health care in foreign nations, a lack of nearby family support in most instances and possible complications when it comes to followup care as reasons why insurance companies are still wary of the concept.

Even so, Richard said a growing demand for more affordable care is prompting his company and others to seriously evaluate foreign coverage.

“UnitedHealth International is currently researching the many issues and challenges related to medical travel and hopes to decide within a few months whether it will design a formal medical travel product for its customers,” he said.

Steve Porter covers health-care issues for the Northern Colorado Business Report. He can be reached at 970-221-5400, ext. 225, or at sporter@ncbr.com.

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