1-On balance, do you think that the kind of outsourcing undertaken by American health care providers is a good thing or a bad thing for the American economy? Explain your reasoning.
The healthcare treatment in the United States of America is quite expensive as compared to other developed countries. It is a fact that the quality of healthcare treatment is in the limelight in this country. However, people in the country are not covered by insurance. Healthcare outsourcing has been undertaken by American healthcare providers due to the increasing health care cost and the shortage of medical experts. For Instance, it has been revealed that the healthcare industry of the United States lacks a balance between demand and supply (Kshetri & Dholakia, 2011). Radiologists and many other medical experts are short in the United States. It increases the cost of treatment in the country, and people are moving to other countries to get low-cost treatment.
However, medical outsourcing is a new trend in the global health industry. However, it is a bad thing for the American economy. Interestingly, despite having opportunities and availability of services in the country, people are moving towards different countries such as India and many others to save the cost of the healthcare treatment. It has been observed that the American economy is generating a big portion of revenue from the healthcare industry. The healthcare organizations are serving an immense range of people who are diagnosed. Of course, medical outsourcing is not in the best interest of the country, as far as economic growth and sustainability are concerned (Lanton, 2017).
Medical outsourcing is not only bad for the economy of the country. Interestingly, the need for identifying the cause of medical outsourcing is the most important thing. America, being a top healthcare provider in the world regarding quality and equipment, is not able to cover its population. It is a big thing to worry about. People’s mobility of medication or treatment is creating an impact on the profitability of the medical industry. People from different parts of the world are also coming to the United States to get high-quality treatment. For Instance, people in developing countries, go to the United States to treat with cancer, surgeries, and many other life-threatening diseases. However, the number of people coming to America for treatment is quite less than people going to different countries. For Instance, it has been revealed that 150,000 people from developing nations, including the United States, visit India to get the health treatment. India healthcare industry contains more than $3 billion in revenues. Comparatively, the healthcare industry of India is growing faster than the United States (Kshetri & Dholakia, 2011).
The healthcare process or treatment has been shifted, and it created a negative impact on the US economy. If the United States manages the demand and supply in the medical industry, it cannot reduce the cost of the treatment. People, despite having good financial resources, are observing the quality in India and many other developing countries. The cost of the treatment depicts a big difference. This way of undertaking medical outsourcing cannot be justified for the betterment of the economy. Other countries are improving and standardizing health care quality along with different health quality and safety measures. If low-cost treatment is available along with sustained quality and standard, the increase in medical tourism is obvious. Medical tourism is increasing rapidly, and it can hit the US medical industry because incomings are less than outgoings.
The United States of America have depicted the health insurance for every citizen. Most people are usually not covered, and therefore, therefore, the outsourcing has been increased. Again, undertaking medical outsourcing this way is also destructive for both industry and economy. The medical contribution to the US economy is going to be decreased.
2-What are the practical limits of outsourcing health care provided to other countries?
Many practical limits are visible regarding healthcare outsourcing. For Instance, people in the United States have to spend money on travel, accommodation, and food. The healthcare treatment in different countries may be costly for a US citizen due to travel and accommodation expenses. It seems one of the key limitations to outsourcing healthcare provision to other countries. People in the United States are containing different income level and insurance coverage. Thus, it seems imperative to come up with effective cost estimation in both the United States and other countries. Still, despite experiencing the high cost of the treatment, it can be affordable for many people. It is also a main limitation of medical outsourcing. If the cost of plastic surgery, cancer, and many other treatments is affordable, the patient will not have to travel. If he travels to visit another country, he may increase his overall health care cost (Walker, 2017).
The example of Mr. Staab is pertinent to justify or prove these limits. For Instance, he traveled to India and paid $10,000 for his surgery, including the visit to Taj Mahal However, the differences regarding the quality and other medical benefit can be the concern. It is possible that India, surgeons or doctors are triggered by outdated health care quality measures. Outdated technology and lack of skill in different countries like India may streamline some health risks. These are some key factors which may restrain people from going outside.
Another limitation can occur regarding cost. If the health care cost in the United States is high, INC is using insurance coverage; the patient cannot go outside to have low-cost treatment. In the United States, the patient has to pay less due to the possible insurance coverage. Thus, it is better to get high-quality treatment from the realizable health institution. On the other hand, if the person is not insured in the United States, he may go to India or another developing country for the treatment. Interestingly, uninsured US citizens may find high-cost treatment in other countries as well (Zion Market Research, 2018).
Mr. Beeney and Howard Staab are two good examples of medical outsourcing. However, by observing a few examples like these, declaring the medical outsourcing good is not a good call. Maybe, these are among many patients who got treatment in different countries. The success rate is still controversial, and it is also one of the prominent limits regarding outsourcing.
Ethically, it is important for developing countries to meet the healthcare needs of the local population. Instead of prioritizing the profitability the local healthcare institute must have to use health care resources. If an outsider comes to India, it may cause the diversion of health care resources. In other words, medical outsourcing may limit the treatment of the local population, and it seems unethical.
It has been revealed that some new health care trends trigger the global healthcare industry. The United States is among these countries, which has integrated with new healthcare trends. Medical outsourcing may not be the best decision. Developing countries may be slow in adopting new health care trends. The cost of change or technological transformation is quite high in developing countries. Getting the average quality treatment through outdated or traditional technology is always risky. In my opinion, it is the biggest limitation regarding medical outsourcing (Kshetri & Dholakia, 2011).
Medical outsourcing has become the big trend in the healthcare industry. The globalization of the healthcare industry is good for the better in the healthcare process for the world. However, the most important thing is to eliminate these entire limitations to make outsourcing favorable and pertinent for people around the globe.
References
Zion Market Research. (2018, June 25). Global Medical Tourism Market Expected to Reach USD 28.0 Billion by 2024: Zion Market Research. Retrieved from https://globenewswire.com/news-release/2018/06/25/1528923/0/en/Global-Medical-Tourism-Market-Expected-to-Reach-USD-28-0-Billion-by-2024-Zion-Market-Research.html
Kshetri, N., & Dholakia, N. (2011). Offshoring of healthcare services: the case of US-India trade in medical transcription services. Journal of Health Organization and Management; Bradford, 25 (1), 94-107.
Lanton, M. A. (2017, October 8). Why Doctors Say Outsourcing is the Way to Go. Retrieved from https://www.orlandomedicalnews.com/why-doctors-say-outsourcing-is-the-way-to-go-cms-1348
Walker, B. (2017, July 17). If you operate a medical practice, you should be outsourcing. Retrieved from http://www.medicaleconomics.com/medical-economics-blog/if-you-operate-medical-practice-you-should-be-outsourcing
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