Global Post’s

What Obama’s Affordable Care Act Means for the World’s Hospitals

by Matt Levin

Chelsea Swanhorst

Background

Medical Tourism: – People who live in one

country travel to another country to receive medical, dental, and surgical care…and are traveling for medical care because of affordability, better access to care or a higher level of quality care. *

– Thrives on uninsured US citizens

* Medical Tourism Association

Background

The Affordable Care Act– 2014 all US citizens are required to have

health insurance– Affordable Insurance Exchange– Citizens may opt out for a feeAffordable Care Act Fees

Year Price Per Adult Price Per Child

2014 $95 $47.50

2015 $325 $162.50

2016 $695 $347.50

Healthcare.gov

Article Summary: What Obama’s Affordable Care Act Means for the World’s Hospitals

3 Main Ways Obamacare Affects the Medical Tourism Industry1. May hurt the industry2. Big changes in America’s healthcare: doctor shortages,

longer hospital waits, and insurance company extending coverage

3. Paying fee may be cheaper

My Opinion4. Americans will be unhappy with outsourcing

healthcare5. Lack of confidence in Costa Rica’s healthcare

institutions

Outsourcing Healthcare

Surgeons and physicians in Costa Rica are educated in the US

US citizens travel to Costa Rica to receive this care

Each country has a comparative advantage

Worldbank

Costa Rica’s life expectancy 79.2 (2010) US’s life expectancy was 78.2 (2010)

Healthcare in Costa Rica: Life Expectancy Rate

Healthcare in Costa Rica: Confidence Level

No official regulatory body overseeing the medical tourism industry

American Medical Association has guidelines*

Joint Commission International, JCI** Accredited two hospitals in Costa Rica

Post-op resorts pick up patients from airport and provides transportation to the patient and family

* www.ama-assn.org/ama1/pub/upload/mm/31/medicaltourism.pdf**www.jointcommissioninternational.org/JCI-Accredited-Organizations/

Non-Tariff Barriers Pros of regulation:

Increases confidence Increases higher education,

medical tourism, and other industries through the roundabout way

Cons of too much regulation: Promotes inefficiencies Creates obstacles for

patients Hurts higher education,

medical tourism, and other industries through the roundabout way

Procedures

Obamacare will not affect dental work, elective surgeries, & operations not offered in the US

These procedures are most common in Costa Rica Emergency surgeries can’t be performed

internationally

International Patients

English

Prices

Medical Procedure USA Costa Rica

Heart Bypass $144,000 $25,000

Knee Replacement $50,000 $12,500

Face Lift $15,000 $5,700

Liposuction $9,000 $3,900

www.medicaltourism.com/en/compare-costs.html

Benefits to Costa Rica’s Economy

American patients stay longer and spend six times as much money versus American tourists Family comes before procedure Family stays to help recovery

Benefits to Costa Rica’s Economy

Promed, medical tourism agents 67% of Costa Rica’s GDP is commerce,

tourism, and services* Tourism needs to be a sustainable industry

*www.state.gov/r/pa/ei/bgn/2019.htm

My Conclusion

Not just a fadUS isn’t competitive in healthcare industry

US healthcare industry cannot be completely eliminated

Benefits developing countriesNon-tariff barriers are largest threatRegulations are necessary

Questions?