Slashing Health Care Costs, and Slashing, and Slashing
Sarah Standish
Innovative practices in Indian health care are make surgeries more affordable. [World Bank]
The numbers alone say a lot: A heart surgery that costs between $20,000 and $40,000 in the United States can cost only $2,000 in India.
The medical tourism industry has always taken advantage of lower health care costs in India and other developing countries. Some, however, are thinking beyond that. The Wall Street Journal recently profiled Dr. Devi Shetty, an Indian physician who has radically rethought the way heart surgery is managed and priced to make it more affordable than ever before.
Quite simply, Dr. Shetty is making heart surgery cheaper by doing more of it, says The Journal. The heart hospital he opened in India has 1,000 beds (the average U.S. hospital has 160 beds), and the sheer number of surgeries it performs gives it a lot of bargaining power for the equipment that it buys — carefully chosen for its cost. His physicians do more surgeries per day and repeat the same procedure more often than American doctors, giving them invaluable experience and expertise. Dr. Shetty plans to expand his private hospital complex significantly in the the next five years — a move that will give him even more leverage over suppliers.
Dr. Shetty's cost-cutting drive was propelled by a desire to make heart surgery affordable for Indians, after he understood the incompatibility of expensive health care and poverty. $2,000 for a life-saving surgery can be prohibitively expensive for some Indians, so many patients pay their medical bills through a special insurance plan developed by Dr. Shetty, in partnership with government officials from the state of Karnataka.
Dr. Shetty suspects that this kind of health care is likely to appeal to Westerners as well. He plans to open another hospital in the Cayman Islands specifically to serve Americans who want to lower their own health bills.
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Source: http://www.globalenvision.org/2009/12/01/slashing-health-care-costs-and-slashing-and-slashing
