By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    stress management for healthcare workers
    3 Tips For Healthcare Professionals: How To Stay Beautiful, Healthy, and Happy
    November 2, 2021
    importance of relaxing on the weekend for your health
    Importance of Relaxing During the Weekend for Optimal Health
    March 25, 2022
    LASIK Eye Surgery
    What Is LASIK Eye Surgery?
    May 16, 2022
    Latest News
    5 Steps to a Promising Career as a Healthcare Administrator
    July 31, 2025
    Why Custom Telemedicine Apps Outperform Off‑the‑Shelf Solutions
    July 20, 2025
    How Probate Planning Shapes the Future of Your Estate and Family Care
    July 17, 2025
    Beyond Nutrition: Everyday Foods That Support Whole-Body Health
    June 15, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    You Probably Thought the Public Option Was Dead
    June 1, 2011
    Employers as Doctors
    July 9, 2011
    Pushback On My Medicare Proposals
    August 12, 2011
    Latest News
    How IT and Marketing Teams Can Collaborate to Protect Patient Trust
    July 17, 2025
    How Health Choices and Legal Actions Intersect After an Injury
    July 17, 2025
    How communities and healthcare providers can address slip and fall injuries with legal awareness
    July 17, 2025
    Let Your Lawyer Handle the Work Before You Pay Medical Costs
    July 6, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Employers Opt for Medical Tourism
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Employers Opt for Medical Tourism
BusinessNews

Employers Opt for Medical Tourism

JohnCGoodman
JohnCGoodman
Share
4 Min Read
SHARE

In Priceless, I hazarded a guess that employers could cut the cost of hospital care in half by engaging in medical tourism. It’s a variation on what is sometimes called “value-based purchasing” or “reference pricing.” In its pure form, the employer picks a low-cost, high quality facility and covers all costs there. If the employee chooses another hospital, the employee must pay the full extra cost of the more expensive choice.

In Priceless, I hazarded a guess that employers could cut the cost of hospital care in half by engaging in medical tourism. It’s a variation on what is sometimes called “value-based purchasing” or “reference pricing.” In its pure form, the employer picks a low-cost, high quality facility and covers all costs there. If the employee chooses another hospital, the employee must pay the full extra cost of the more expensive choice. In Priceless, I argued that to take full advantage of the opportunities available, the patients must be willing to travel.

Several large companies are already trying the idea out. As Jim Landers explains:

Wal-Mart Stores Inc., the nation’s largest employer, will jump into medical tourism next year by offering insured employees no-cost heart and spine surgeries at Scott & White Memorial [in Temple, Texas] and seven other hospitals across the country…By using a hospital in the new narrow network, patients could save as much as $5,000 or more…

More Read

john brownstein
Choosing the Right mHealth Tools for the Job
The Passing of Steve Jobs – Pancreatic Cancer
Analytical Marketing Helps Breakthrough Medicine Reach Patients
Is Hydroponics or Soil Better for Your Health When Gardening?
Do You Understand Your Medical Bills? I Don’t

The hospitals in Wal-Mart’s network — including the Cleveland Clinic and Geisinger Medical Center in Danville, Pa. — have gained national reputations for both quality and value. Physicians and surgeons work under financial incentives rewarding improved patient outcomes.

Come fly with me

Here is the complete network:

  1. Temple’s Scott & White Memorial — Texas (cardiac surgeries, spine surgeries)
  2. Mayo Clinic’s three hospitals (organ transplants)
  3. Cleveland Clinic (cardiac surgeries)
  4. Geisinger Medical Center (PA) (cardiac surgeries)
  5. Mercy Hospital Springfield — Springfield, Mo. (spine surgeries)
  6. Virginia Mason Medical Center — Seattle (cardiac surgeries, spine surgeries)

This is actually an expansion of a program already under way. And Wal-Mart is not alone:

  • Wal-Mart developed a relationshipwith Mayo Clinic in 2007 for transplant and lung volume reduction surgeries.
  • Lowes began an initiative in 2010 when it began offering workers the option to travel to Cleveland Clinic for cardiac procedures.
  • PepsiCoannounced in December of 2011 that it planned to offer its employees the option to travel to Johns Hopkins Medicine in Baltimore for cardiac and complex joint replacement surgeries.

Writing at Tom Emerick’s blog, Brian Klepper sums up the trend this way:

Health care organizations should not underestimate the significance of Wal-Mart’s (Center of Excellence) program. It is one of many signs suggesting that, after 40 years of being impervious to market forces, the health care bubble could burst. All it would take to change health care as we have come to know it is for more employers to collaborate and follow Wal-Mart’s, Lowes’ and PepsiCo’s leads. They would stop doing business with health care organizations that are unaccountable and don’t provide measurable value, and transfer that business to those that do.

  

TAGGED:medical tourism
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

5 Steps to a Promising Career as a Healthcare Administrator
5 Steps to a Promising Career as a Healthcare Administrator
Health
July 31, 2025
holistic dental
Holistic Dentist Services Are Natural and Safe
Dental health Specialties
July 28, 2025
botox certification
Help Improve People’s Skin Health Via Botox Certification
Skin Specialties
July 22, 2025
Telemedicine Apps
Why Custom Telemedicine Apps Outperform Off‑the‑Shelf Solutions
Health
July 20, 2025

You Might also Like

BusinessPolicy & LawPublic Health

Curing Medicare: A Book Review

April 1, 2015

Study: EDs Closing at Significant Rates

May 18, 2011

Moving from Volume-Based to Value-Based Reimbursement

September 1, 2014
chat bubble
BusinesseHealthSocial Media

9 Success Keys: How to Make Your Social Media Truly Engaging

July 31, 2014
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?