Lowering Healthcare Costs and Global Medical Tourism

Best Essays
As healthcare costs continue to escalate in the United States, employer healthcare plans are looking for alternatives pricing plans to lower healthcare insurance costs for their employees. Blue Ridge Paper Products (BRPP) is one company in Canton, North Carolina who is attempting to decrease healthcare costs for their employees by offering health promotion incentives and more cost effective provider reimbursement options (McLaughlin & McLaughlin, 2008). McLaughlin and McLaughlin (2008) explain while the health promotion strategies they have instituted have been successful at lowering BRPP’s healthcare claims, they have found it difficult to negotiate lower costs with local healthcare providers. In this paper, I will discuss possible consumer and provider bargaining strategies with regarding to lowering healthcare costs; the benefits of a large academic medical center and a large tertiary community hospital; and finally, how medical global tourism will affect state and national healthcare policies. Decreasing Healthcare Costs: Bundled Pricing and Lowering Administrative Costs It would be necessary for a hospital administrator to look closely at ways to lower healthcare costs and provide more efficient care when a large employer like BRPP states they are thinking of relocating their employee inpatient hospital services to a company like InduShealth. InduShealth is offering substantially lower prices for several surgical procedures and a U.S. hospital administrator would not want to lose this large consumer population if it was possible to find more efficient methods of providing healthcare to their patients (McLaughlin & McLaughlin, 2008). One pricing strategy that a hospital administrator could advocate for is a bundled... ... middle of paper ... ...on, L., Sunley, S., Manca, D., & Grunfeld, E. (2011). Current use of electronic medical records in primary care of chronic disease the implications for clinical governance. Clinical Governance: An International Journal, 16(4), 353-363. doi: 10.1108/ 147772271111175387 Stegman, M.S. (2005). Coding & billing errors: do they really add up to a $100 billion health care crisis? Jouranl of Health Care Compliance, 7(4), 51-55. Rezaie, R. & Singer, P.A. (2010). Global health or global wealth? Nature Biotechnology, 28(9), 907-909. Turner, L. (2012). Beyond “medical tourism”: Canadian companies marketing medical travel. Globalization and Health, 8(16), 1-11. Young, S. & Erdem, S.A. (1996). An exploratory study of services marketing in global markets: Major areas of inquiry for the health care services industry. Health Marketing Quarterly, 14(1), 85