Globalization in the Healthcare Sector - Essay Example

Abstract

The paper explores how globalization has significantly influenced economies and how it has influenced the health care sector in the United States. The advent of liberalized trade and global policies have integrated numerous aspects, thus harmonizing the way in which the health sector operates, especially due to the easiness and simplicity in exchange of ideas and knowledge resulting from movement and integration of people. It is undeniable no society is isolated from the rest of the world in the 21st century since policies that are practiced in one part of the world have been assimilated in other distant places, thus bringing about integration of knowledge and ideas. Therefore, the paper will try to underscore how globalization has transformed the health care sector in America with a closer examination on its impact on health care providers, insurance companies, medical practitioners as well as aligning the health sector to practices in other parts of the world.

Globalization in the Healthcare Sector

Introduction

The advent of globalization has transformed the manner in which economic, social and political activities are conducted worldwide. People and goods can freely move across borders leading to the transfer of knowledge and technologies across nations. The health care sector is one that has been taunted to be least affected by globalization but in the past few years, it has witnessed massive transformations as a result of globalization (Kumar, Breuing, and Chahal, 2012). Ideally, pressure from globalization has led to the liberalization of trade in the sense that goods and services can move freely across national and regional borders thus enabling both developed and developing nations to leverage the benefits of each other. In the health care sector, globalization has facilitated medical tourism as well as outsourcing of health care operations. It is prudent that the cost of health care in the United States of America as well as in other Western countries is very expensive as compared to the developing world. In that regard, a majority of patients opt to seek medical services abroad where the rates are as low as half the price back in America (Labonté et al., 2009).

With the implementation of the international standards for health care quality has led to harmonization of practice in the discipline since more countries have complied with global standards. In that light, medical tourism has gained tract especially to India where high quality meets affordable services (Turner, 2007). For instance, the cost of conducting a heart surgery in India is a third of the cost in the USA or Britain. Similarly, in America, it takes several months before one can be booked for a complicated surgery such as heart or organ transplant but in India, one can embark on a plane and the next day undergo surgery. Therefore, due to these issues globalization has enabled consumers not to struggle with expensive medical services in America but can opt to seek affordable healthcare elsewhere (Turner, 2007).

Impact of Globalization in the US Healthcare

The health care sector in America has significantly transformed as a result of globalization. Ideally, in the past, the sector was self-sufficient in the sense that it undertook all operations on its own without outsourcing. However, with the emergence of India as a hub for affordable quality health care more American patients are seeking medical services abroad where it is perceived to be cheap (Turner, 2007). In that light, the domestic sector has been left to reinvent its approach so as to remain competitive. Ideally, America is home to the world’s most sophisticated health care technologies. However, the industry is capital intensive thus making it very expensive for ordinary citizens. It is prudent that American citizens that do not have medical insurance covers find it almost impossible to access health care services due to the cost associated. Globalization has opened up the international healthcare industry since patients can freely move across the world to seek medical attention at the destination of their choice (Turner, 2007). With medical tourism taking the route as a result of cheaper medical services in the developing countries the American system has sought to increase both competitiveness and efficient to remain relevant.

The American health care sector has reinvented itself to cushion the pressure as a result of globalization by improving the quality of its products at the same time offering clients with more choices in their services. Ideally, the sector has been diversified since innovative products have been developed to meet the needs of individual consumers (Kumar, Breuing and Chahal, 2012). As part of its measure to bring down the cost of healthcare, the sector is a part of implementing massive outsourcing of its operations to India where labor cost is relatively cheap but of international standards. A majority of services have been offshored to developing countries with the aim of reducing the operational cost (Kimberly and De Pouvourville, 2008). For instance, in the past, it was very expensive to manage patients with chronic illnesses since they would often require combined efforts of different physicians and specialists. Combining the services of several health practitioners was very costly and unmanageable to a majority of the patients (Turner, 2007).

Human resource is crucial in the health care sector. Globalization has facilitated the manner in which knowledge moves across national boundaries through international educational and mentorship programs. Ideally, students from developing nations that end up in the developed world to study medicine will often return to their home countries to practice thus spreading new knowledge and practices (Labonté et al., 2009). In that regard, Western practices will find their way to developing nations through assimilation as a result of education and knowledge transfer. On the other hand, the cost of labor in the American healthcare sector is relatively high due to lack of sufficient workforce in that discipline. Often Western nations will offer scholarship programs to students in developing countries that have passed exemplary in high school as well as those with a bachelor degree in medicine to study and later fill the human capital gap in the sector. Thus, it is evident that globalization has enabled both developed and developing countries to benefit from each other in establishing coherent health care sectors in their respective countries (Kimberly and De Pouvourville, 2008).

Globalization has facilitated the manner in which health policies are implemented across the globe. Ideally, health is a complex subject that requires collective efforts from all countries for it to be managed effectively. Health systems have been assimilated through international treaties whereby countries commit to uphold those policies with the aim of improving health outcomes in their respective countries (Kimberly and De Pouvourville, 2008). America is among the leading nations that have committed massive capital into medical research and innovation with the aim of improving the wellbeing of people on earth. Through their research initiatives, they come up with policies that stipulate the manner in which health care operations should be implemented to enhance positive results. It is evident that America has over the years increased its global influence through extensive research in the field of medicine since they are on the forefront of making discoveries that aid the world in combating health care issues (Kumar, Breuing and Chahal, 2012).

However, it is worth noting that the phenomena of medical tourism that is being touted as a key aspect of globalization in the health care sector will soon fade. Ideally, medical tourism might not be relatively cheap in the long run since the patient will have to cater for extra charges regarding travel and accommodation cost. That notwithstanding, it causes more harm since it hurts the patient psychologically having to travel thousands of miles in search of medical care that would be locally sourced. With time it will lose significance since the gaps that existed in health care provision will be filled as countries with improved health care systems will attempt to harmonize their costs while those that lag behind improve their services to ensure their citizens access medical care locally (Kumar, Breuing and Chahal, 2012). Notably, collaboration between countries is the hallmark of globalization, and the trend will continue for many years to come. The healthcare sector is very dynamic since new conditions emerge that required collective efforts from across the world (Labonté et al., 2009). For instance, in America globalization has led to the partnership between private health care organizations, academic centers, insurance companies, government agencies as well as non-governmental organizations to improve and expand health care systems (Kimberly and De Pouvourville, 2008).

Conversely, it has facilitated the free flow of health practitioners to other parts of the world to assist in the design of clinical programs as well as health care policies that will improve the well-being of the locals. The US government through its agencies has set up several programs in developing countries that are aimed at imparting knowledge to the local practitioners at the same time assist in dealing with certain conditions in the region (Labonté et al., 20099). For instance, US Aid is a leading partner with several countries in sub-Saharan Africa in fighting Malaria, Tuberculosis and child mortality. Through this program, the countries assimilate new knowledge and expertise in dealing with those conditions as well as receive physical and procedural tools that will help them to improve healthcare systems. Given the fact that those countries have limited resources and technology to undertake advanced research they leverage from the knowledge of America research to tackle local problems.

The healthcare sector in the US has been revolutionized as a result of globalization since. Lately, there has been increased collaboration among the major stakeholders. For instance, healthcare providers are collaborating with insurance companies as well as pharmaceutical firms by sharing relevant information so as to bring down costs (Labonté et al., 2009). Through the information that health care providers share with insurance companies, they can come up with innovative products that fit the needs of all consumers at an affordable cost. In that regard, all Americans can be covered and thus can readily access health care services on demand (Kimberly and De Pouvourville, 2008). Given the fact that the cost of health care is relatively expensive in America, insurers have partnered with health care providers to conduct campaigns that encourage people to embrace routine check-ups. Ideally, it is relatively cheap to treat a condition during its onset as opposed to when it has matured and degenerated to other secondary illness. In that regard, insurance providers are able to cut down their cost of operations since a majority of chronic diseases are diagnosed in their initial stages with relevant therapies being initiated to cure those conditions (Kumar, Breuing and Chahal, 2012).

Conclusion

Globalization has significantly influenced the healthcare system in the United States of America since the system has been made more efficient and profitable. Similarly, through globalization the US has been able to assimilate its policies and academia to developing countries as well as other established nations through scientific collaboration with the aim of improving the health care sector. However, it is worth noting that globalization in health care has brought along both advantages and disadvantages. As much as medical systems have been improved the advent of transnational diseases has also increased since with the mobility of health care personnel as well as patients with medical tourism diseases are transferred more rapidly.