Medical Tourism in Developing Countries

Medical Tourism in Developing Countries Medical Tourism in Developing Countries

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Inequalities in Health Care ● 183be clear, as must its relationship with private schemes. Having all these channelsin place is still part of capacity to provide for public health, similar tohaving the actual funding. 47 But capacity is only part of the story.In addition to capacity, the government must want to improve publichealth, in other words, it must make it a priority. This is the second conditionthat must be met in order for medical tourism to fund public health.Do governments in developing countries really want to deal with publichealth issues? Do they merely pay lip service to it or is there agenuine effort to spread basic health care to all? In response to such questions,Derek Yach said, “When political courage, individual commitment,organizational support and financing combine, the health of populationsbenefits. However, this rarely happens.” 48In order to assess how sincerely LDC’s governments are approaching theproblem of public health, several indicators may be considered. First, onemight monitor public statements and policy promises. However, politicianscould either be paying lip service since health care is a politicized sector, orthey might truly be motivated but have their hands tied by a variety ofconstraints. Alternatively, one might evaluate laws that have been enactedand assess if they were broken. Such an assessment is difficult to make giventhe corruption, bureaucracy, and inefficiency associated with both legal andpolitical institutions. Finally, one might also observe government expenditureon basic public health. Even if expenditure is high, it does not meanthat basic health needs are being satisfied. 49 That is illustrated by twoexamples. First, in 2000, the general performance of the U.S. health caresystem was ranked 37th by the WHO (out of 191 member countries) whileCuba’s was ranked 39th. 50 At the same time, health care expenditure percapita was $5,274 in the United States and $236 in Cuba. Second, India’shealth-care system has barely four doctors for every 10,000 people, comparedto 27 in the United States. 51 Yet health care accounts for only5.1 percent of India’s GDP, compared to 14 percent in the United States. 52Incentives are crucial in national health-care performance if they translateinto appropriate investment in basic health care as well as the developmentof mechanisms for the distribution of wealth. As Seror points out inher study of Cuba, those factors depend on ideology that is reflected in howthe government and others finance, administer, and regulate health care. 53This by no means implies that one must have a communist government inorder to have health-care incentives. Rather, it is meant to highlight thatincentives are real when they are enveloped in priorities and commitmentsthat link the government health authorities to the remote rural patient.In conclusion, although medical tourism provides the capacity for thegovernment to fund public health care, it will not do so in the absence of

184 ● Medical Tourism in Developing Countriesincentives. Moreover, if a country has both the capacity and the incentive,then the crowding-in effect is likely to outweigh the crowding-out effect.How does one know if crowding out or crowding in has occurred?Indeed, how do we know if revenues earned by corporations revert back tofinance the public sector or if the corporations have honored the terms onwhich they were granted subsidies? There are no boundaries, no clear-cutdemarcations that need be crossed to indicate one way or another. To theextent that indicators of crowding out and crowding in are identified, methodsfor measurement are set, and data are available, then countries couldmake an assessment of the effect of medical tourism on public health.If crowding out is found to exist, then public policy must mitigate the negativeimpact of medical tourism on the poor local populations. In that effort,it must ensure that there are laws in place to protect patients’ rights, as wellas penalties in place to punish those who refuse to treat patients who cannotpay. If crowding in is found to exist, that warrants appropriate encouragementand expansion. Either way, the relationship between medical tourismand public health is complex and precarious and requires fine balancing.Economic Development: Are We There Yet?Less developed countries are like passengers on a journey, impatient to getto their destination. That destination is a higher level of economic development,a level not delineated by specific boundaries or thresholds, yet it isone that is recognizable when reached. Medical tourism is viewed as a wayto speed up the journey, to bypass useless stops and frustrating dead-ends.For some countries, it is a feasible growth strategy. Those countries standout among LDCs. If asked the question “Are we there yet?” the answer forthem is yes, they have arrived. They have surpassed other countries withrespect to numerous economic indicators, they have developed political andlegal institutions, they have a vibrant tertiary education in sciences,et cetera. Because of their advantages (described in chapter 5), ten destinationcountries can develop medical tourism and transform it into an engineof growth. These same advantages enable the countries to overcome domesticand international obstacles to the development of medical tourism(described in chapter 6). For many of the same advantages, these countriesare also likely to have existing mechanisms through which redistributivefiscal policy can be effective in alleviating public health-care problems sothat medical tourism may become the great equalizer, bringing affordablehealth care to all those who seek it. Undoubtedly, medical tourism providesthe capacity for the public sector to grow and, if alleviating poor publichealth is a priority, for its revenue to be appropriately channeled.

Inequalities <strong>in</strong> Health Care ● 183be clear, as must its relationship with private schemes. Hav<strong>in</strong>g all these channels<strong>in</strong> place is still part of capacity to provide for public health, similar tohav<strong>in</strong>g the actual fund<strong>in</strong>g. 47 But capacity is only part of the story.In addition to capacity, the government must want to improve publichealth, <strong>in</strong> other words, it must make it a priority. This is the second conditionthat must be met <strong>in</strong> order for medical tourism to fund public health.Do governments <strong>in</strong> develop<strong>in</strong>g countries really want to deal with publichealth issues? Do they merely pay lip service to it or is there agenu<strong>in</strong>e effort to spread basic health care to all? In response to such questions,Derek Yach said, “When political courage, <strong>in</strong>dividual commitment,organizational support and f<strong>in</strong>anc<strong>in</strong>g comb<strong>in</strong>e, the health of populationsbenefits. However, this rarely happens.” 48In order to assess how s<strong>in</strong>cerely LDC’s governments are approach<strong>in</strong>g theproblem of public health, several <strong>in</strong>dicators may be considered. First, onemight monitor public statements and policy promises. However, politicianscould either be pay<strong>in</strong>g lip service s<strong>in</strong>ce health care is a politicized sector, orthey might truly be motivated but have their hands tied by a variety ofconstra<strong>in</strong>ts. Alternatively, one might evaluate laws that have been enactedand assess if they were broken. Such an assessment is difficult to make giventhe corruption, bureaucracy, and <strong>in</strong>efficiency associated with both legal andpolitical <strong>in</strong>stitutions. F<strong>in</strong>ally, one might also observe government expenditureon basic public health. Even if expenditure is high, it does not meanthat basic health needs are be<strong>in</strong>g satisfied. 49 That is illustrated by twoexamples. First, <strong>in</strong> 2000, the general performance of the U.S. health caresystem was ranked 37th by the WHO (out of 191 member countries) whileCuba’s was ranked 39th. 50 At the same time, health care expenditure percapita was $5,274 <strong>in</strong> the United States and $236 <strong>in</strong> Cuba. Second, India’shealth-care system has barely four doctors for every 10,000 people, comparedto 27 <strong>in</strong> the United States. 51 Yet health care accounts for only5.1 percent of India’s GDP, compared to 14 percent <strong>in</strong> the United States. 52Incentives are crucial <strong>in</strong> national health-care performance if they translate<strong>in</strong>to appropriate <strong>in</strong>vestment <strong>in</strong> basic health care as well as the developmentof mechanisms for the distribution of wealth. As Seror po<strong>in</strong>ts out <strong>in</strong>her study of Cuba, those factors depend on ideology that is reflected <strong>in</strong> howthe government and others f<strong>in</strong>ance, adm<strong>in</strong>ister, and regulate health care. 53This by no means implies that one must have a communist government <strong>in</strong>order to have health-care <strong>in</strong>centives. Rather, it is meant to highlight that<strong>in</strong>centives are real when they are enveloped <strong>in</strong> priorities and commitmentsthat l<strong>in</strong>k the government health authorities to the remote rural patient.In conclusion, although medical tourism provides the capacity for thegovernment to fund public health care, it will not do so <strong>in</strong> the absence of

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