Outpatient Facility Costs Rising Could Benefit Medical Tourism Industry

You may remember back in December I wrote a post about rising hospital costs. It was called “Rising Hospital Costs: What they mean for Workers’ Compensation and Medical Tourism“. That post was courtesy of Joe Paduda. This post is also courtesy of Joe, who wrote today on his blog about a study conducted by the Workers’ Compensation Research Institute (WCRI).

This recent study analyzed the outpatient facility costs, cost drivers, regulatory mechanisms, and trends in 20 states.

What this means for medical tourism and workers’ compensation is that as facility costs rise in these 20 states, due to changes in Medicare and Medicaid hospital reimbursements, cheaper, more cost-effective forms of treatment will become valuable to the payers who are now looking at higher facility costs, even for outpatient services.

Bottom line, the US health care system, in its inpatient and outpatient hospital services, is going to get more and more expensive.

Should costs rise too much for even most workers’ compensation payers to pay, alternatives in medical tourism will be more and more attractive, especially for more serious cases, and perhaps, for those that otherwise would have been treated on an outpatient basis domestically.

Factoring in the cost of treatment, travel and accommodation expenses, medical tourism, if packaged correctly, could compete quite favorably with US hospitals in these states, and others, where facility costs have skyrocketed out of control. Workers’ Compensation insurance carriers and their employer insureds will need to take a long hard look at such an alternative, which will be a boon to the medical tourism industry.

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This entry was posted in Health Care, Medical Tourism, Workers' Compensation and tagged , , , , , on by .

About Transforming Workers' Comp

Have worked in the Insurance and Risk Management industry for more than thirty years in New York, Florida and Texas in the Claims and Risk Management spheres, primarily in Workers’ Compensation Claims, Auto No-Fault and Property & Casualty Claims Administration and Claims Management. Have experience in Risk and Insurance Business Analysis, Risk Management Information Systems, and Insurance Data Processing and Data Management. Received my Master’s in Health Administration (MHA) degree from Florida Atlantic University in Boca Raton, Florida in December 2011. Received my Master of Arts (MA) degree in American History from New York University, and received my Bachelor of Arts (BA) degree in Liberal Arts (Political Science/History/Social Sciences) from SUNY Brockport. I have studied World History, Global Politics, and have a strong interest in the future of human civilization in all aspects; economic, political and social. I am looking for new opportunities that will utilize my previous experience and MHA degree. I am available for speaking engagements and am willing to travel. LinkedIn Profile: http://www.linkedin.com/in/richardkrasner Resume: https://www.box.com/s/z8rxcks6ix41m3ocvvep

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