Medical Tourism and the Globalization of Health Care

Question 1 

Outsourcing of medical services is a trend that is increasing across the globe, and the high rate of globalization enhances it. America is one of the countries that are outsourcing its medical services, especially from India. Many benefits are associated with outsourcing medical services ( Sandberg, 2017) . The first major benefit is the reduced cost of medical services, particularly due to the difference in the medical wage gap between medical providers in America and those in countries like India. For instance, a radiologist in America earns 400,000 annually while that in India only earns about 40,000 in the same period. Thus, the outsourcing of medical services reduces the cost of providing specialized medical services. The second main benefit is reduced workload, as the demand for specialized medical services is increasing. Outsourcing can help in addressing the shortage of specialized medical providers, leading to an improved quality of health care services. 

However, according to Sandberg (2017), outsourcing can reduce revenue for American medical providers. The providers will be spending a significant amount of money in outsourcing for medical services, reducing their revenue and profitability. The second cost of outsourcing is the possibility of compromising the quality of services. For instance, the quality of health care services in China is still low, primarily when compared to other developed countries like the USA. Hence, some of the services that are outsourced may be of low quality. Although the outsourcing of specialized medical services may be attributed to many benefits, it also has some costs that should be considered. 

Question 2 

Medical tourism is currently one of the multi-billion dollar industries globally whose growth is expected to increase substantially soon ( Sandberg, 2017) . The major beneficiaries of the medical tourism industry are patients who enjoy a low cost of health services from the host countries. For instance, the cost of joint resurfacing surgery in India is only $6,600 compared to the cost in the USA, which is about 25,000. At the same time, the medical cost of leaking heart valve surgery in India is $10,000 while the same patient would pay $60,000 in America. Apart from the low cost of health services, patients also have the opportunity to visit various tourist sites in the host country. Thus, patients are the major beneficiaries of medical tourism. Medical providers in the host countries are the second major beneficiaries due to increased revenue and profits. Apollo Hospital, for instance, treats about 500,000 international patients annually. Nevertheless, the countries that are exporting patients in foreign nations are the major loser in medical tourism trend because they lose health tax revenue. Medical tourism has beneficiaries and losers. 

Venezuela under Hugo Chavez and Beyond 

Question 1 

The economic system under Chavez leadership was known as a command economic system. It is an economic system where a lot of business activities are controlled by the government or central power ( Harrison, 2005) . Chavez transformed a lot of enterprises to state-owned after he ascended to power in 1999. At the same time, he restructures other enterprises as workers’ cooperative to give the government an opportunity to have full control of economic activities that were taking place in the country. Besides, under Chavez leadership, a significant number of companies, especially in the oil sector, were forced to sell the majority of share or stake to the government. The command economic system that was embraced by Chavez leadership almost led to the collapse of Venezuela. 

Also, I would characterize the political system in Venezuela under Chavez leadership as a communist. According to Harrison (2005), t he communist political system is dominated by a few leaders and elites who control a lot of activities in the country. A planned economy and the government also characterize the political system always tries to provide social services to people. I believe, Chavez was practicing communist political system when he became the president of Venezuela. 

Question 4 

The prices of oil increased significantly in 2008, leading to increased economic growth and tax revenue in Venezuela. Chavez was able to use the opportunity to implement some of his social policies that benefited many people. However, the price oil fell substantially in 2014, which affected the country’s economy, including government finances. The sharp fall or oil prices in 2014 made Venezuela’s economy to contract and experience negative growth, which affected individuals, businesses, and the government. For instance, the economy contracted by about four percent. As a result, the tax revenue collected by the government reduced while businesses also struggled to survive as they experienced reduced profitability. The fall on oil prices also led to an increase in inflation that increased the cost of living for many people living in the country. Also, the reduced economic growth resulted in a high level of the unemployment rate, leading to an increase in poverty because people struggled to meet their basic needs. Oil plays an important role in the country's economy, and a fall in prices of the commodity always results in economic instability that has a lot of impact on people and the government. Venezuela relies on oil for its economic growth and development just like many oil-rich countries in the world. 

References 

Harrison, M. (2005). The fundamental problem of command: Plan and compliance in a partially centralized economy. Comparative Economic Studies , 47 (2), 296-314. 

Sandberg, D. S. (2017). Medical tourism: An emerging global healthcare industry. International Journal of Healthcare Management , 10 (4), 281-288.