Tuesday, October 7, 2008

Medical Tourism Promoting Price Competition

Categories: Hospitals

An article in the Pittsburgh Post-Gazette about employer initiatives to lower health insurance costs has this interesting bit:

For sheer innovation, it would be tough to top the Hannaford Brothers Co. grocery chain of Portland, Maine.
When health costs spiraled upward, Hannaford went international, offering employees full coverage for knee replacements in Singapore, where a hospital charged $10,000, instead of U.S. hospitals where the cost typically ran $30,000.
Once the program was publicized, though, Hannaford Brothers started hearing from U.S. hospitals willing to match or beat what Singapore charged. Those negotiations are ongoing.
"The hope is that we never have to send anyone to Singapore," said Chris Washburn, employee benefits supervisor.