Journal of Healthcare Management - May/June 2014 - (Page 211)
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INTRODUCTION
Each year, thousands of patients "leave
home" for the specific purpose of
obtaining care that is "more accessible,
of higher quality, and/or lower cost"
(Garman, Johnson, & Clapp, 2008).
This phenomenon, known as medical
travel (MT), involves either foreign
patients coming to the United States to
obtain healthcare (inbound MT) or U.S.
patients traveling abroad (outbound
MT) or to a domestic healthcare facility
outside their geographic area
(intrabound MT) (Keckley & Underwood, 2008). When MT also includes a
vacation component, it is referred to as
medical tourism (Karuppan & Karuppan, 2011). The present study focuses on
outbound MT, with or without a leisure
component.
The market for outbound MT was
once limited to cosmetic surgery
patients, the uninsured and underinsured, and individuals seeking procedures with limited access in their home
country. Recently, this market has
expanded to include patients in search
of better value and, more notably,
individuals receiving healthcare coverage from their employers to opt for
MT (Karuppan & Karuppan, 2010).
This finding has opened a fresh and
promising avenue for research into
the commercial viability of MT as an
administrative innovation. Accordingly,
the present article examines the current
status of MT options.
Approximately 150 million nonelderly Americans receive healthcare
coverage through their employers,
making employer-based coverage (EBC)
the primary source of insurance in the
United States. In the past few years,
and
M edIcal t ravel o ptI ons
however, the percentage of workers
covered by their employers has fallen
from 60.4 percent in 2007 to 55.8
percent in 2011 (Fronstin, 2012). Furthermore, it is unclear how the Affordable Care Act of 2010 (ACA) will affect
EBC. The ACA requires employers of 50
or more full-time employee equivalents
to provide comprehensive and affordable coverage by 2015-2016. Failing to
do so will result in assessable payments,
or "penalties" (Haberkorn, 2011). Some
reports project that the act will shore up
EBC (Bowen & Buettgens, 2011),
whereas others anticipate that it will
foster employer attrition (Market
Strategies International, 2011), as paying
penalties might be considered more
cost-effective than subsidizing healthcare coverage. Although the future of
EBC is uncertain, it is poised to remain a
major source of coverage for years.
Furthermore, there is little doubt that
perpetually rising healthcare costs will
stimulate price shopping and the search
for competitive alternatives. MT may
thus emerge as an attractive option in
EBC.
The present study was based on
both qualitative and quantitative
research. First, semistructured phone
interviews of HR professionals were
conducted to gain insights into their
perceptions of MT and the likelihood of
its adoption in their organizations. This
information was subsequently used to
refine a survey instrument, which was
administered to a sample of 608 HR
professionals across the United States.
The objectives of the survey were to (1)
uncover the extent to which U.S.
employers include MT options in their
health plans, (2) compare the
211
Table of Contents for the Digital Edition of Journal of Healthcare Management - May/June 2014
Journal of Healthcare Management - May/June 2014
Contents
Interview With Christopher D. Van Gorder, FACHE, President and CEO of Scripps Health
Successful Strategic Planning for a Reformed Delivery System
You, Inc.
Assessing the Feasibility of a Virtual Tumor Board Program: A Case Study
Physician Clinical Alignment and Integration: A Community–Academic Hospital Approach
Employer-Based Coverage and Medical Travel Options: Lessons for Healthcare Managers
Composite Model for Profiling Physicians Across Domains of Care
Journal of Healthcare Management - May/June 2014
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