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Essay / Healthcare Cost Reduction and Global Medical Tourism
As healthcare costs continue to rise in the United States, employer health plans are seeking alternative pricing plans to reduce costs health insurance for their employees. Blue Ridge Paper Products (BRPP) is a Canton, North Carolina-based company that is trying to reduce health care costs for its employees by offering health promotion incentives and more cost-effective reimbursement options for employees. providers (McLaughlin and McLaughlin, 2008). McLaughlin and McLaughlin (2008) explain that although the health promotion strategies they implemented were successful in reducing BRPP health care demands, they had difficulty negotiating lower costs with health care providers. local health care. In this article, I will discuss possible negotiation strategies between consumers and providers regarding reducing health care costs; the benefits of a large academic medical center and a large tertiary community hospital; and finally, how global medical tourism will affect state and national health policies. Lowering Healthcare Costs: Bundled Pricing and Reducing Administrative Costs It would be necessary for a hospital administrator to take a close look at ways to reduce healthcare costs and provide more efficient care when a large employer like BRPP , they are planning to transfer the hospital services of their employees to a company like InduShealth. InduShealth offers significantly lower prices for several surgical procedures and a US hospital administrator would not want to lose this important consumer population if it were possible to find more efficient methods of providing health care to their patients (McLaughlin & McLaughlin , 2008). One pricing strategy that a hospital administrator might advocate is a bundled strategy...... middle of paper ......on, L., Sunley, S., Manca, D. & Grunfeld, E (2011). Current use of electronic medical records in primary care of chronic diseases and implications for clinical governance. Clinical Governance: An International Journal, 16(4), 353-363. doi:10.1108/147772271111175387Stegman, M.S. (2005). Coding and Billing Errors: Are They Really a $100 Billion Healthcare Crisis? Journal of Health Care Compliance, 7(4), 51-55. Rezaie, R. & Singer, PA (2010). Global health or global wealth? NatureBiotechnology, 28(9), 907-909. Turner, L. (2012). Beyond “medical tourism”: Canadian companies market medical travel. Globalization and health, 8(16), 1-11. Young, S. & Erdem, SA (1996). An exploratory study of services marketing in global markets: key research areas for the healthcare services industry. Health Marketing Quarterly, 14(1), 85