I saw an article in the New York Times yesterday that was interesting for several reasons. You can read it here. For those unwilling to click through, or who have used up their “five free articles” for the month, here’s the gist of the story. An American woman needing a knee replacement went to Cancun for the procedure, and the entire trip and all medical costs were less expensive than just the procedure stateside.
As far as that goes, it’s just another medical tourism story. But there are a few twists. First, the surgeon was a US doctor who was also flown down to Cancun just for this surgery. He was accompanied by a Mexican doctor and staff, including a bilingual nurse who helped translate the doctor’s instructions. Why did the doctor do it, on his day off? He was paid triple the US Medicare rate for his work, including expenses.
Second, the woman and her husband are middle class folks from Mississippi, and her care came under her husband’s coverage through his employer, Ashley Furniture of Wisconsin. So this isn’t some ridiculously rich patient, nor a gold-plated health plan. Yet the health insurance provider paid all the expenses for the patient and her husband to stay at a resort attached to the hospital for the day before the surgery and ten days after. Oh, and she got a $5,000 bonus for agreeing to participate in the program. How? The total cost for everything was less than 40% that of doing the same procedure in the States. So Ashley furniture has saved millions in the last three years by offering this option to its employees.
Third, the care team consciously exceeded the health and care standards of US hospitals, using extra sterilization equipment and accelerating the physical therapy regimen. Why? the entire program is managed by a US firm called North American Specialty Hospital or NASH, who makes all the arrangements for the travel (even passports), connects the doctors and patients, and even provides malpractice insurance for the American doctor in case of complications. NASH insists on exceeding US standards to mitigate patient concerns; it’s the same reason they arrange for a US doctor. NASH is a for-profit business that gets a flat rate from the insurers for its work.
Last, why a private, upscale Mexican hospital? The cost per night is only $300 USD, and the care staff was excellent. As the patient related in closing, she would gladly come back and pay, as she was treated “like family.”
What we have here is a wining situation. Average couple gets high quality medical care: win. Company saves millions of dollars on said care: win. Upstart firm makes money ingeniously by putting consumers and providers together in an innovative way: win. Mexico gets credit for the quality of its care: win. Even the American doctor made out well.
Granted, this is not the solution to America’s health care challenges, if only because some people won’t accept it just because it is different. But it does show how there are ways out of the health care mess which don’t destroy the system as it exists. We need more innovative thought–and less sloganeering–on health care.
Amen, Dad
When Bernie uses the Canadian system as a desired model…beware! It is not a panacea. The system is rationed in the extreme. Cue up and wait, and wait, and…The Canadian system could use inovation, in fact it is critical to do so now, as it will soon collapse in on itself. Canadians have been brainwashed in two ways. 1. It is the best system in the world…not true by a country mile. 2. It’s ‘free’…an assinine notion. It’s very expensive due in part to a bloated middle management and inefficiencies. Every politician has his/her magic fix, few of whom have any clue other than what benefits them politically. Inovation is needed but woe the politician who brings it up…political suicide. Any change suggestions will bring the full force and money of the unions to bring you down.
This seems to make clear that the main problem with US health care is the cost. Why else would an insurer offer such a sweet deal (OK, it was not fun for the patient but still, getting a $5k bonus? Really?)? My thesis is that people with provided insurance (gold-plated or not) are disassociated from what the true costs are. I used to be one of those, until I had to buy my own coverage. All they think about is their deductible, and deem the rest “free”. It is also a fact that a key benefit to ANY health insurance in the US is access to negotiated rates between providers and payers – insurance companies or Medicare. Person off the street going into an emergency room without any coverage at all will get nailed to the…gurney. Thanks for the post!