A nurse at Inha University Hospital in Incheon on Thursday explains the physical check-up process to Americans visiting Korea on a medical tour. By Choi Min-gyu
Having devoted my past two posts to scolding the Joong-Ang Daily, I was pleasantly surprised this morning to come upon this piece, which reports on the experiences of 17 American tourists who came to Korea recently for various medical tests and treatments.
Medical tourism is, of course, nothing new: busloads of pensioners have been making regular trips to Mexico and Canada in search of low-cost prescription drugs; US citizens have been known to head for India or Thailand for LASIK surgery; and Korea, to judge by this and this, is quickly becoming a destination for medical tourists, particularly those in search of double eyelids or a double-D.1
I'm no health care economist, but all of this makes me ponder the possibilities of an increasingly global health care industry. In the United States - where, as usual, health care is an issue in the presidential campaign - a great number of the competitive market forces have been removed from the health care industry, driving costs into the stratosphere and leaving many without insurance. At present, for example, health care in the United States is largely a state-by-state market due to government restrictions, meaning that a resident of Oregon cannot buy insurance approved in, say, Wyoming. This, as you might expect, limits competition and narrows the risk pool, both of which serve to push up the cost of a policy. And then there are the state mandates, requiring private insurance companies to cover such things as acupuncture and chiropractic services, further increasing costs across the board. None of this is to say anything about the byzantine tax structures that, some economists estimate, increase health care costs by 20-30%.2
Examining areas of health care not covered by insurance schemes can be enlightening, or at least thought-provoking. The cost of LASIK surgery, to take one example, has decreased dramatically over the past few years, even as the quality of the procedure has improved. It's fair to say that competition has a lot do with that, and not only competition within the United States. Any potential LASIK customer, facing a full out-of-pocket expenditure, can survey the options available around the world - in China, Korea, Canada, or the US, to name a few - and find a variety of prices and services available. Most Americans will elect to have the surgery in the United States, but the international competition almost certainly plays a role in the decreasing cost. Considered in this light, the possibilities for health care at large are intriguing.
Given the high degree of government involvement in health care around the world, achieving a level of unfettered competition akin to the LASIK industry is unlikely, but we shouldn't ingore the possibilities. Governments meddle in all kinds of industries - finance, media, technology, manufacturing - and yet each of these sectors has managed to evolve in spectacular ways over time. Might not the same prove true of health care?
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Notes
1 Then again, the Joong-Ang ran this article last year, acknowledging that even its own writers might be overstating the medical tourism "boom" in Korea.
2 For a bit more reading on the US health care system, and its attendant problems, see here and here.
Medical tourism is, of course, nothing new: busloads of pensioners have been making regular trips to Mexico and Canada in search of low-cost prescription drugs; US citizens have been known to head for India or Thailand for LASIK surgery; and Korea, to judge by this and this, is quickly becoming a destination for medical tourists, particularly those in search of double eyelids or a double-D.1
I'm no health care economist, but all of this makes me ponder the possibilities of an increasingly global health care industry. In the United States - where, as usual, health care is an issue in the presidential campaign - a great number of the competitive market forces have been removed from the health care industry, driving costs into the stratosphere and leaving many without insurance. At present, for example, health care in the United States is largely a state-by-state market due to government restrictions, meaning that a resident of Oregon cannot buy insurance approved in, say, Wyoming. This, as you might expect, limits competition and narrows the risk pool, both of which serve to push up the cost of a policy. And then there are the state mandates, requiring private insurance companies to cover such things as acupuncture and chiropractic services, further increasing costs across the board. None of this is to say anything about the byzantine tax structures that, some economists estimate, increase health care costs by 20-30%.2
Examining areas of health care not covered by insurance schemes can be enlightening, or at least thought-provoking. The cost of LASIK surgery, to take one example, has decreased dramatically over the past few years, even as the quality of the procedure has improved. It's fair to say that competition has a lot do with that, and not only competition within the United States. Any potential LASIK customer, facing a full out-of-pocket expenditure, can survey the options available around the world - in China, Korea, Canada, or the US, to name a few - and find a variety of prices and services available. Most Americans will elect to have the surgery in the United States, but the international competition almost certainly plays a role in the decreasing cost. Considered in this light, the possibilities for health care at large are intriguing.
Given the high degree of government involvement in health care around the world, achieving a level of unfettered competition akin to the LASIK industry is unlikely, but we shouldn't ingore the possibilities. Governments meddle in all kinds of industries - finance, media, technology, manufacturing - and yet each of these sectors has managed to evolve in spectacular ways over time. Might not the same prove true of health care?
___________
Notes
1 Then again, the Joong-Ang ran this article last year, acknowledging that even its own writers might be overstating the medical tourism "boom" in Korea.
2 For a bit more reading on the US health care system, and its attendant problems, see here and here.









