Managed Care - June 2008 - (Page 15) NEWS AND COMMENTARY Price not greatest concern in medical travel Although the price difference between procedures performed in the United States and in developing countries might suggest that U.S. payers could gain if they extend their coverage to include treatments abroad, there are a number of factors holding back the flood of medical travelers. They include the inaccessibility of networks of providers in some medical-travel destinations, the lack of sufficient transparent worldwide data on the quality of health care, the inconvenience of travel, and the desire to undergo medical procedures in familiar settings. The findings are published in a report issued by McKinsey called “Mapping the Market for Medical Travel.” The report also says that most medical travelers seek high quality and faster service, not lower costs. “If U.S. payers embrace medical tourism, within three to five years, medical tourism will grow substantially,” says Paul D. Mango, a McKinsey director and coauthor of the report. “The medical tourism market, without the U.S. involved, is stable at best and vulnerable at worst.” Medical travelers from the United States report that they would consider “receiving treatment abroad if it saved them at least $10,000, after accounting for treatment and travel costs,” says Mango. Opportunity for payers If payers covered medical travel, the potential U.S. market would probably range from 500,000 to 700,000 patients a year, compared to 5,000 to 10,000 today. The report suggests that if this were the case, the savings might be on the order of $20 billion. Total savings ($ billions) Millions of medical travel cases 8.0 $51 Savings by payer Commercial 3.0 $40 Other public (including Medicaid) Minimum savings threshold per case Brea k or ab even ove 2.0 $33 Medicare >$5 ,00 0 >$1 0,0 0.71 $19 $13 00 > $15,0 00 > $20,0 00 0.36 $35 $100 $75 $20 U.S. provider revenue today ($ billions) $190 Source: The McKinsey Quarterly, May 2008 JUNE 2008 / MANAGED CARE 15
Table of Contents Feed for the Digital Edition of Managed Care - June 2008 Managed Care - June 2008 Editor’s Memo Contents Viewpoint Letters News and Commentary Legislation & Regulation Medication Management Compensation Monitor Plans Chart Course in Rough Waters A Conversation With Barbara Starfield, MD Smoke Signals from Payers Slow Going for Clinical Decision Support Back Pain and Physical Therapy Formulary Files PlanWatch Outlook Managed Care - June 2008 Managed Care - June 2008 - Managed Care - June 2008 (Page Cover1) Managed Care - June 2008 - Managed Care - June 2008 (Page Cover2) Managed Care - June 2008 - Managed Care - June 2008 (Page Cover3) Managed Care - June 2008 - Managed Care - June 2008 (Page Cover4) Managed Care - June 2008 - Managed Care - June 2008 (Page A) Managed Care - June 2008 - Managed Care - June 2008 (Page B) Managed Care - June 2008 - Editor’s Memo (Page 1) Managed Care - June 2008 - Contents (Page 2) Managed Care - June 2008 - Contents (Page 3) Managed Care - June 2008 - Contents (Page 4) Managed Care - June 2008 - Viewpoint (Page 5) Managed Care - June 2008 - Letters (Page 6) Managed Care - June 2008 - Letters (Page 7) Managed Care - June 2008 - Letters (Page 8) Managed Care - June 2008 - Letters (Page 9) Managed Care - June 2008 - Letters (Page 10) Managed Care - June 2008 - Letters (Page 11) Managed Care - June 2008 - Letters (Page 12) Managed Care - June 2008 - Letters (Page 13) Managed Care - June 2008 - News and Commentary (Page 14) Managed Care - June 2008 - News and Commentary (Page 15) Managed Care - June 2008 - News and Commentary (Page 16) Managed Care - June 2008 - News and Commentary (Page 17) Managed Care - June 2008 - News and Commentary (Page 18) Managed Care - June 2008 - Legislation & Regulation (Page 19) Managed Care - June 2008 - Legislation & Regulation (Page 20) Managed Care - June 2008 - Medication Management (Page 21) Managed Care - June 2008 - Medication Management (Page 22) Managed Care - June 2008 - Compensation Monitor (Page 23) Managed Care - June 2008 - Plans Chart Course in Rough Waters (Page 24) Managed Care - June 2008 - Plans Chart Course in Rough Waters (Page 25) Managed Care - June 2008 - Plans Chart Course in Rough Waters (Page 26) Managed Care - June 2008 - Plans Chart Course in Rough Waters (Page 27) Managed Care - June 2008 - Plans Chart Course in Rough Waters (Page 28) Managed Care - June 2008 - Plans Chart Course in Rough Waters (Page 29) Managed Care - June 2008 - Plans Chart Course in Rough Waters (Page 30) Managed Care - June 2008 - Plans Chart Course in Rough Waters (Page 31) Managed Care - June 2008 - Plans Chart Course in Rough Waters (Page 32) Managed Care - June 2008 - A Conversation With Barbara Starfield, MD (Page 33) Managed Care - June 2008 - A Conversation With Barbara Starfield, MD (Page 34) Managed Care - June 2008 - A Conversation With Barbara Starfield, MD (Page 35) Managed Care - June 2008 - A Conversation With Barbara Starfield, MD (Page 36) Managed Care - June 2008 - A Conversation With Barbara Starfield, MD (Page 37) Managed Care - June 2008 - A Conversation With Barbara Starfield, MD (Page 38) Managed Care - June 2008 - A Conversation With Barbara Starfield, MD (Page 39) Managed Care - June 2008 - Smoke Signals from Payers (Page 40) Managed Care - June 2008 - Smoke Signals from Payers (Page 41) Managed Care - June 2008 - Smoke Signals from Payers (Page 42) Managed Care - June 2008 - Smoke Signals from Payers (Page 43) Managed Care - June 2008 - Slow Going for Clinical Decision Support (Page 44) Managed Care - June 2008 - Slow Going for Clinical Decision Support (Page 45) Managed Care - June 2008 - Slow Going for Clinical Decision Support (Page 46) Managed Care - June 2008 - Back Pain and Physical Therapy (Page 47) Managed Care - June 2008 - Back Pain and Physical Therapy (Page 48) Managed Care - June 2008 - Back Pain and Physical Therapy (Page 49) Managed Care - June 2008 - Formulary Files (Page 50) Managed Care - June 2008 - PlanWatch (Page 51) Managed Care - June 2008 - PlanWatch (Page 52) Managed Care - June 2008 - Outlook (Page 53) Managed Care - June 2008 - Outlook (Page 54)
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