Surgery Abroad: The Cost Savings of Medical Tourism Procedures

Medical tourism may be Americans' last beacon of hope as many wait for organ transplants or stare at exorbitant hospital bills. Despite the fact that President Obama's health care legislation passed, many Americans remain skeptical that these bold moves will translate to real savings for their families. Many hardworking people know that they have nothing if they do not have their health, which is why more U.S. citizens are willing to travel far distances to reap the cost savings of surgery abroad.

According to Ruben Toral, CEO of the Mednet Asia hospital consulting firm, "As the health-care crisis in the U.S. continues, people and corporations are going to start taking a look at other options. Health care won't be too much different than manufacturing; it's going to start to move to lower-cost areas." Countries like India, Singapore and Thailand are already some of the top destinations for those seeking surgery abroad, so it wouldn't be surprising for insurance companies to see the value in marketing lower cost options to clients who would typically make these choices on their own, skipping insurance providers altogether.

In 2007, there were 1.5 million medical tourism procedures performed in Thailand, according to KGI Securities, which was up from 500,000 in 2000. Health tourism is expected to hit 2 million in 2010. Not surprisingly, the largest pool comes from America, representing 33% of all surgery tourists. The citizens of other countries who travel abroad for more affordable medical healthcare include: China (29%), Japan (18%), England (14%), Middle East countries (6%), Australia (6%) and others (17%). The disparity in price is astounding when you look at some of the most common overseas surgeries.

According to Denver Bariatrics, the self-pay breakdown for laparoscopic roux-en-y gastric bypass (weight reduction) surgery is as follows: $14,000 in hospital charges; $1,200 for anesthesia fee; $750 for pulmonary consultation fee; $6,000 for surgeon's fee/post-op care; $600 for surgical assistant's fee; $200 for the camera operator's fee; and $200 for a psychological evaluation. The total price comes to $22,950. However, the cost of gastric bypass surgery in medical tourism destinations like Costa Rica, India, Mexico and Belgium can cost as little as $6,900 to $13,000! Health experts say this savings is due to lower surgeon fees, lower hospital expenses and less malpractice liability. As you can imagine, the health tourism industry is growing rapidly at about 15% per year.

The cost of an average hip replacement in America is $43,000. Health tourism experts say this same surgery can be purchased abroad for $12,000 in Singapore and Thailand or $9,000 in India. Some overseas hospitals specializing in medical tourism deals, like Singapore's Gleneagles Hospital, are partially owned by U.S. private equity firms, which are very large shareholders controlling a quarter of the international medical facilities. This gives some Americans additional peace of mind and assures them that nothing will be done to jeopardize their favorable ratings.

Hysterectomies are another one of the fastest growing procedures being done abroad. In the U.S., you can expect to pay $20,000, compared to $6,000 in Singapore, $4,500 in Thailand and $3,000 in India. Hospital tourism is so popular in India that many local health care providers are interested in working with U.S. drug makers, insurance companies, doctors and hospitals to form alliances and offer low-cost care to American citizens in need. Perhaps the globalization of health care will be what finally inspires true reform for the American health care industry.

The cost of a knee replacement in America is $40,000. Patients without insurance have even been known to pay up to $70,000! Comparatively, health tourism experts say you will pay just $13,000 in Singapore, $10,000 in Thailand and $8,500 in India. The five-star-hotel-style St. Luke's Hospital in Manila, Philippines is trying to market itself as a top medical tourism destination, but the country doesn't have quite the reputation of its well-established neighbors. As a result, prices are much lower too, with knee surgeries done for as low as $5,639, according to a Philippine Daily Inquirer article (1/16/10).

Heart bypass is one of the most popular surgical procedures performed abroad. In America, patients can expect to pay $130,000. However, the savings of receiving medical services overseas is staggering: $18,500 in Singapore, $11,000 in Thailand and $10,000 in India! Singapore's Eastshore Hospital is becoming one of the top hospital tourism destinations since they teamed up with Blue Cross & Blue Shield of South Carolina, which offers offshore services to their U.S. members.

The cost of a heart valve replacement in America is also driving health tourism. In the U.S., you'll pay $160,000 to keep your heart in working order. However, you can get the same procedure done in Singapore for $12,500, in Thailand for $10,000 or in India for $9,000. Blue Cross & Blue Shield of South Carolina has partnered with the Apollo Hospital in the city of Chennai in southern India to offer medical tourism affordable services to their American BC/BS members.

Another heart procedure -- angioplasty -- is one of the most expensive surgeries performed in the United States, with an average cost of $57,000. It's no surprise, then, that medical tourism companies are promoting this health tourism service. Singapore and Thailand offer angioplasty surgery for $13,000 and in India, Americans are treated for as low as $11,000. Bangkok's Bumrungrad International Hospital in Thailand is currently the leader in American angioplasty tourism, having treated 65,000 Americans in 2009.

Sometimes legal red tape prevents Americans from getting the medical care they need, so having surgery abroad becomes an attractive option. Even though numerous studies (conducted in America and internationally) have demonstrated the effectiveness of using stem cells in treatments, there are many people who are ethically opposed to the practice. For people with serious spinal cord injuries, these medical tourism procedures may be a last bastion of hope, offering amazing results and full mobility once again. A spinal fusion in America could cost $62,000. However, one can get the same level of care in Singapore for $9,000, Thailand for $7,000 or India for $5,500. The Beijing Tiantan Puhua Hospital is a ritzy medical facility catering to international patients who are looking for experimental stem-cell treatments that are unavailable in the U.S.