The Globalization of Healthcare - Is the U.S. Ready?
As the media warn about the possibility of trade wars and protectionism, the international healthcare consumer has already set the stage for the globalization of what could become the world's largest industry.
The movement of goods, services and capital across international borders has been well-documented, and it is hard to dispute the impact this has had on the transfer of wealth and multinational interdependence. What is less understood is how people who seek better, more cost-effective healthcare in foreign countries are re-shaping the market for medical treatment. As the price of healthcare in the U.S. has skyrocketed, consumers have become more willing to travel great distances to obtain less expensive care. At the same time, U.S. hospitals have addressed their staffing shortages by recruiting qualified doctors, nurses and other professionals from other countries.
The dynamic that is steering this revolution is quite simple. In the absence of political or economic barriers, globalization shifts the production of goods and services to those locations that produce such offerings at the lowest possible cost. In the past two decades, this trend has been greatly accelerated by the availability of information about alternative sources on the internet and by demographic forces such as the aging of the American population including healthcare workers.
A recent study by the Society for Healthcare Strategy and Market Development and the American College of Healthcare Executives, entitled "Futurescan 2009 -Healthcare Trends and Implications 2009-2014" revealed that nearly two-thirds of survey respondents think it is likely that the number of persons traveling overseas for medical treatment will double by the year 2014; however, an equal percentage don't believe that health insurers will amend their policies to pay for such medical tourism. An additional 82 percent of respondents agree that existing and new forms of telemedicine will enable even greater degrees of "virtual" medical tourism. Apparently, the public is confident that technology will increasingly bridge the distances between patients and providers, even though the source of payment remains in doubt.
Which brings us to the crux of this commentary. Is the American legal system ready for such a fundamental restructuring of the healthcare delivery system? Will our current economic troubles and the Government's intense desire to put a lid on healthcare costs accelerate globalization beyond the ability of lawmakers, regulators and courts to figure out what our rights and responsibilities should be in this brave new world? These and other questions must be addressed as part of the greater debate about health care reform if we are to build a sustainable model for the 21st Century.
