Medical Outsourcing: Reducing Clients' Health Care Risks

McCallum, Brent T.; Jacoby, Philip F.
October 2007
Journal of Financial Planning;Oct2007, Vol. 20 Issue 10, p60
Academic Journal
• The U.S. health care system is beset by cost, access, and quality issues. As a consequence, tens of millions of uninsured and underinsured Americans must decide between forgoing the medical attention they need and incurring medical costs that threaten their financial well-being. • A growing number of advisors and their clients (as well as a growing list of employers) are finding a practical solution to the health care dilemma in "medical outsourcing." Launched in dozens of countries over the past decade, medical outsourcing leverages economic, technological, and demographic changes to provide clients with access to affordable, high-quality health care. The article offers a comparison of medical outsourcing prices of common surgical procedures to those of U.S. hospitals. Savings, including travel to the country, typically range from 50 percent to as high as 95 percent of U.S. costs. This article serves as a medical outsourcing primer. It provides an overview of medical outsourcing, the problematic U.S. health care system, and the relative advantages and potential risks of medical outsourcing in a manner that will help planners share this valuable health care solution with their clients. • With medical outsourcing, there is the inevitable question of quality and risk. This article focuses on the high quality and affordable care of accredited premier medical facilities in foreign countries. • The authors provide evidence supporting the proposed value of medical outsourcing and identify clients, including small-business owners, who might profit from medical outsourcing. The article also advises planners to exercise caution regarding potential legal liability issues.


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