Transcript Document
International Plan of Mystery: What Self-Insured Employers Need to Know About Global Health Care Programs PRESENTED BY Victor Lazzaro, Jr. Tom Emerick David Hom Chief Executive Officer President, Emerick Consulting Former VP Strategic Initiatives BridgeHealth International, Inc. Former VP Global Benefits Pitney Bowes Wal-Mart Stores, Inc. October 6, 2008 Presentation Overview Medical Travel and BridgeHealth Overview of Medical Travel Who is BridgeHealth? Destinations, Network, Procedures Care Coordination The Advantage to Employers Examples What Could It Have Done For Us? US vs. “Peer” Countries Decision Example: Hip Sample Design & Savings Myths and Realities Experience as Mythical Patient Popular Myths Witnessed Realities Conclusions Discussion Open Discussion Medical Travel & BridgeHealth The Trusted Bridge to World-Class Healthcare™ Overview of Medical Travel One of the newest, most innovative options for U.S. employers, health plans, third party administrators, and other health benefits administrators. Significant savings Innovative health benefit design Ensures high quality, cost effective medical care Transparent costs Complements consumer-driven programs Overview of Medical Travel A recent Deloitte study put the number of Americans traveling in 2007 at 750k, and a staggering 15M by 2016 Many players have entered the space on the B2C level, but few qualified on the B2B arena Top criteria to consider: • • • • • Quality Care Broad Network and Service Offering Transparent, Cost-Effective Plans Safety Premium Experience • • • • • Flexible Benefit Design Simplified Billing Financial Stability Deep Healthcare Experience Solid Infrastructure Who is BridgeHealth? BridgeHealth International, Inc. (BridgeHealth) …is the premier service provider in the burgeoning medical travel industry—a real company with infrastructure, expertise, growth capital and industry-specific experience. BridgeHealth… …maintains an international network of physicians and accredited hospitals and clinics …offers significant savings …provides a turnkey solution …has sent many Americans abroad for medical travel Destinations BridgeHealth International has selected centers of excellence in the following countries: Brazil, China, Costa Rica, Hong Kong, India, Mexico, Panama, Singapore, South Korea, Taiwan, Thailand, and Turkey. Additional locations in Europe and elsewhere are under evaluation. Network Just two examples of the high quality network are: • Wockhardt Hospital in Bangalore, India – affiliated with Harvard • Punta Pacifica Hospital in Panama – affiliated with Johns Hopkins Aftercare Network • Our Travel Care Coordinators work individually as needed plus: • Over 160 locations in the U.S. for any follow up that their usual physicians might not take. Pre Travel care and consultation The same network is available for discussion and medical review as needed prior to travel Suite of Procedures BridgeHealth provides prospective patients an all-inclusive, transparent pricing plan which includes: surgery/procedure costs, airfare, lodging, transfers and a 24/7 concierge service. A suite of medical and dental procedures are available, including: • • • • • • • • Cardiology Cardiothoracic Chemical Dependency CyberKnife® (cancer) Dental Detox/Rehab ENT Executive Health Physicals • • • • • • • • Gastroenterology General Surgery Gynecology Internal Medicine Neurosurgery Oncology (selective) Ophthalmology Orthopedics • • • • • • Pain Management Pediatrics Plastic and Reconstructive Surgery Urology Male/Female Vascular Weight Loss/Obesity Surgery Care Coordination Travel Care Coordinators work with client and their needs All U.S. information is treated in HIPAA compliant manner Coordination of Pre travel medical records are made for client to host country hospital and physician Pre travel telephone and/or email consultation with client and their host country physician can be arranged Full outcomes data prior to travel is available to client Care Coordination Post procedure medical records are translated as needed and coordination arranged for the client for their medical records to get to their U.S. physicians Any after care needs can be coordinated Client satisfaction surveys are done Client outcomes are tracked and monitored What Could It Have Done For Us? The Trusted Bridge to World-Class Healthcare™ US Healthcare Spending vs. “Peer” Countries Health Care Per Capita Spending (2003) GDP % U.S. $5,711 15.2 Switzerland $3,847 11.5 Canada $2,998 9.9 U.K. $2,317 7.8 Japan $2,249 8 Source: OECD Health Data 2006 “One fifth of all countries exceed U.S. in life expectancy.” “Americans are living longer, but not as long as people in 41 other countries.” “The U.S. health care system ranks last compared with five other nations on measures of quality, access, efficiency, equity, and Outcomes.” Example: Decision for Hip Replacement Hospital A Hospital B Hospital C Local US Hospital $15,000 $12,000 $9,000 $50,000 Complication Rate for Procedure 0.5% 1.8% 1.1% 1.2% Travel time from home (showing flight transfers required.) 4 hrs (0) 22 hrs (2) 30 hrs (1) 0.5 hrs (0) 4.5 4.1 4.9 4.7 $500 Waived Waived $5000 $0 $1500 $3000 $0 $4500 $6500 $8000 -$5000 Underlying Cost of Procedure, including Airfare and Hotel Patient Satisfaction Score (5 point scale) Impact to Employee* Patient co-payment and deductible Incentive paid by ER by EE Net benefit to employee with variable incentive Assumes a $5000 copay/coinsurance at a US hospital and a variable incentive paid by employer (ER) to employee (EE) based on provider selected. Sample Benefit Design & Savings Hypothetical Company Example: Current Insurance International Insurance Benefit $0 $41,000 $1,000 waived 80/20 waived $5,000 waived Travel Incentive n/a $3,000 Travel costs, air & hotel n/a $4,000 Partner air n/a $2,000 Savings to Employer* Deductible Coinsurance Max. out of pocket Additional Benefits: * Hip replacement done in Asia: U.S. cost ~ $50k, Int’l cost ~$9,000 Cost to the Employer: $14,000 ($5k OOP, + $9k incentives & costs) Net Savings to Employer: $27,000. Pros & Cons Pro’s Employees requesting it Lower cost Good quality Con’s Due diligence required Controls important Myths & Realities The Trusted Bridge to World-Class Healthcare™ My Experience as a Mythical Patient • Spent 2 days in Mexico to “feel” the experience as a patient • Gained deep understanding of the process • Visited several hospitals as a patient • Visited a cosmetic surgical center • Saw it firsthand and had “bias” pre-visit Myth 1: Medical Care is Not Quality Focused • Hospitals are state-of-the-art facilities – Many are newly built with an understanding of patient flow for expedited care • Similar principles to just in time production – Visually attractive – High touch service for patients • English speaking coordinators and forms are in English • Physicians are often US or western trained – Updated on newest procedures and technologies – Typically are English speaking • Nursing Staff are trained to handle US patients – Recent graduates with up to date training – English speaking Myth 2: Only Cosmetic or Excluded Benefits • This is shifting to mainstream care for other conditions such as – – – – Cardiovascular Pain Hips and Knees Optical surgeries • Cosmetic surgeries will continue to grow due to the aging of the US population • Dental care will expand Myth 3: Patients Won’t Go Outside the US for Care • Access to additional services will continue to be important • Options or choices will remain important to patients • Individual insurance premiums will continue to increase at high levels • Growth of high deductible plans will continue to grow • Growth of ethnic populations will continue and willingness to go their home country for care will continue Myth 4: Medical Travel Won’t Be Sustainable • Supply side growth will continue – Hospital beds designated to medical travel will continue to grow – Physician availability for multiple specialties will grow • Demand side will grow significantly – Patient volume will grow • Under or Un Insured • Ethnic Population growth in the US – Employers will begin to adopt these programs as an additional choice for employees – Health plans will need to get active as this will serve as a growth engine for members Myth 5: Malpractice and Liability Barriers Persist • Demand side of health care will force innovative financing of health care malpractice for returning patients in the US • Liability coverage will likely move to shared captives by hospitals and other systems or companies • Intake processes to manage patients will need to be automated and to improve to manage expectations Conclusions • Growth industry • Venture capital is now entering this market to drive adoption and sustainability • Health plans will see the need to invest • Employers who have specific needs will use these services • Employees will demand services over time Discussion The Trusted Bridge to World-Class Healthcare™ Contact Information www.BridgeHealthInternational.com The Trusted Bridge to World-Class Healthcare™ Victor Lazzaro, Jr. Chief Executive Officer BridgeHealth International, Inc. [email protected] O: 303.457.5725 C: 303.358.0300 Tom Emerick President, Emerick Consulting Former VP Global Benefits, Wal-Mart Stores, Inc. [email protected] O: (479) 957-4902 David Hom Former VP Strategic Initiatives, Pitney Bowes [email protected] O: (203) 685-6790