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Related Experiment Videos

Will the surgical world become flat?

Arnold Milstein1, Mark Smith

  • 1Mercer Health and Benefits, San Francisco, USA. arnold.milstein@mercer.com

Health Affairs (Project Hope)
|January 11, 2007
PubMed
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Medical tourism for coronary artery bypass graft (CABG) surgery is growing. Hospitals in low-wage countries offer high-quality care at lower prices, making international surgery affordable for U.S. patients.

Area of Science:

  • Health Economics
  • International Health
  • Surgical Outcomes

Background:

  • Rising healthcare costs in the U.S. are driving demand for affordable alternatives.
  • International hospitals are increasingly offering specialized medical procedures.
  • Coronary artery bypass graft (CABG) surgery represents a significant healthcare expenditure.

Purpose of the Study:

  • To assess the quality and cost of nonurgent coronary artery bypass graft (CABG) surgery in international hospitals.
  • To compare international surgical prices with U.S. insurer-negotiated rates.
  • To evaluate the financial feasibility of medical tourism for CABG surgery among U.S. households.

Main Methods:

  • Collected price and quality data from internationally patronized hospitals in low-wage countries.

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  • Surveyed U.S. households regarding their willingness to travel for surgery.
  • Analyzed price differentials between U.S. and international CABG procedures.

    • Main Results:

    • International hospitals demonstrate rising quality standards and employ U.S.-trained physicians.
    • Prices for CABG surgery abroad are substantially lower than U.S. negotiated rates.
    • Cost savings from international surgery align with the financial incentives for approximately 30% of surveyed households.

    Conclusions:

    • The findings suggest a significant trend towards the offshoring of expensive, nonemergency surgeries.
    • Increasingly cost-conscious U.S. consumers and purchasers are likely to drive this growth in medical tourism.
    • International medical tourism offers a viable, cost-effective option for certain high-cost surgical procedures like CABG.