Sex Hip ― How I Went Comparison Shopping for Surgery
Youth sees a through-line to immortality until age intervenes. Occasionally, I felt a twinge in my right hip as far back as fifteen years ago. I laughed and called it “sex hip”, as in, “Ow. I have sex hip”. Other versions were bluer. Until recently, a sore hip whispered, “fun weekend”.
Join me as I jump over hurdles to shopping for healthcare locally and globally after I discover that I need hip surgery. Two previews: 1) It takes about 8 times longer to get basic information from a U. S. hospital than from an international hospital. 2) In January of 2011, I was quoted retail prices between $16,000 and $19,000 per night for hospital rooms in Southern California vs. $166 per night at Thailand’s best hospital.
Prognosis: Middle Age
In the fall of 2010, the Tourism Authority of Thailand (TAT) announced a blogging contest to refresh the world’s awareness of Thailand’s leading role in cross-border healthcare. I’m working on a book about Thailand so I was eager to inspect Thai health providers personally. I entered the contest and became a finalist.
Thanksgiving week I arrive in Thailand at 6 AM to an enthusiastic TAT team and a daily 7AM to 10PM, forced-march schedule seeing hospitals, clinics and sites in Bangkok. After 17 hours flying in coach I’m beat, jetlagged and limping. I didn’t realize how bad my hip had gotten.
Auspiciously, Bumrungrad International, which has a Center of Excellence in orthopedics and is one of the world’s top hospitals is on my itinerary. Sometimes familiarization trips like the one I’m on include the offer of experiencing a service. I ask if they will look at my hip and am whisked in to see an orthopedic surgeon for a range of motion evaluation. Quick-as-an-X-ray, I’m diagnosed as needing Birmingham hip-resurfacing surgery, a more conservative version of total hip replacement. Bumrungrad sends me off with the doctor’s preliminary diagnosis and a digital copy of hip X-rays. I’m 51. Sex hip just became middle-age hip.
Skin in the Game
Nothing like a little skin in the game to motivate a search for value. The Centers for Medicare and Medicaid Services (CMS) say healthcare accounts for 17.3% of the U.S. GDP in 2009. Healthcare is 23 percent of the federal budget, 21 percent of individual state budgets, and 16 percent of discretionary spending in the average household. It sounds like nonsense to say that Americans are not good consumers of healthcare (because we certainly consume enough of it). But, we’re bad at it ― though, through little fault of our own. There are legal, competitive, structural and social barriers to the availability of basic information that drives purchase decisions in non-healthcare industries.
To clarify, there is lots of data about healthcare. Government publications, regulatory agencies, care providers and insurance companies all publish tons of information about the consumer or how to buy insurance. However, in months of research, I cannot find any information on how to go about buying a surgical treatment service in the U. S. (other than plastic surgeries) or how much frequently performed surgeries should cost. Why aren’t prices for medical services as easy to find as say, pricing an airline ticket? I was about to find out.
If you’re a medical professional you’re probably saying that I just don’t understand the constraints you operate under. You’re right. I don’t…not completely anyway. However, the utter lack of information makes me wonder what you don’t seem to want me to know. I’m not asking for the recipe to Coke Classic. This isn’t national defense. Why the secrecy? The absence of easy-to-find consumer information on U. S. healthcare and pricing is all the more surprising because healthcare is a mature, highly regulated industry.
Three years ago I started researching Health Travel, (which is the notion of applying consumer behaviors we use in every day life shopping for food, clothing, electronics, entertainment and durable goods), to healthcare. This sounds simple but it gets confounded by a U. S. healthcare system that brims with distortions that decouple costs from results.
Artificial market distortions, which Economists call asymmetric information, obstruct a normal consumer search for value. My experience shopping for surgery in the U. S. was so difficult and unsatisfying that it is damning. I defy anyone to shop for a specific health treatment service and then tell me with a straight face that, “The U. S. has the best healthcare in the world.” Here’s why.
Good Patients. Lousy Consumers.
It is easy to compare features and pricing when shopping for cars or electronics. In contrast, do you know how much the doctor marks-up the lab tests you just took? Any idea how much your insurance company was charged for your last colonoscopy? Do you ask the price of specialist consultations before you go? Offhand, do you know which nearby hospital has the best value in emergency room services or how much a hospital room costs per night? Do you consult any objective measures of how good your personal doctor is? Probably not. If you’re insured you probably leave details to the insurance company and just follow a path set out by your doctors. Good patients are lousy consumers.
Shopping for Healthcare in Southern California
I decide to use my requirement as a reason to put myself in the shoes (on the crutches?) of a regular patient and go shopping for hip surgery. I start my search where I live in California before going global. For now, I set aside the issue of insurance and shop as a cash (not insured) patient because it reveals the consumer process more clearly.
If you know anything about U. S. healthcare, you might flag “cash patient” as a canard because some hospitals quote higher prices to cash patients; while others quote their highest prices to insurance companies and offer lower pricing to cash patients. My point exactly. Situational distortions like these frustrate consumer behavior because value becomes so difficult to identify. Fluid pricing results in adverse selection, asymmetric pricing and general confusion…all of which are bad for consumers.
The Challenge of Getting Basic Information
*Cash Pricing on basic information collected, January, 2011.
1) I start by contacting the 3 Southern California hospitals that top the U. S. News & World Report’s Best Hospitals in Orthopedics list. You’re probably thinking, can’t you just go on a hospital website to view room prices and procedure estimates? Nope. Can you call a hospital and find out enough general information to decide whether you might want to become a patient there? Not really.
2) Getting price estimates is a multi-step, multi-source process that took 3 to 4 hours of active time for each U. S. hospital, (over several days). The data above are from 6 different phone calls to 6 different sources. Seems to me getting cash pricing requires more sophistication and persistence than it should.
For example, the hospitals I contacted required that I provide them with the accurate insurance code for my procedure before the hospital could tell me what an in-patient room costs. The insurance codes are called CPT codes, and I was able to get them for Birmingham Hip Resurfacing / Total Hip Replacement from an Internet resource. But sheesh! Really? I have to become expert enough to figure out the insurance code (for a cash procedure) or you can’t tell me anything?
At the apex of frustration, USC, asked for the CPT codes too but then would not provide any information about services or pricing without a written request from one of their own, internal doctors. To restate, USC would not tell me pricing under any circumstances, even though they have a website tab for International Patients. I presume that International Patients don’t have Blue Cross-Anthem…so they must be paying cash. I wonder if they have to know CPT codes, too. Maybe I’ll fake a French accent and call that line next time.
3) I was up-front with the hospitals about shopping for value. Two hospitals (UCLA and Cedars-Sinai) eventually quoted verbal estimates for the hospital room, the operating room and the cost of the implant. Keep in mind this is a healthcare need I can schedule. If the need were urgent there would not be any hope of searching for value.
4) Originally, I hoped for written estimates…something as simple as the UCLA graphic above. However, the only estimates I could get were verbal.
5) There is no “all-in-one” source for information. Each hospital department is specialized and will not provide any information about another department…more than an accurate telephone number. I understand that medicine is highly specialized but all I wanted were general guidelines, like, “How many weeks of physical therapy do most patients need?”.
6) Hospitals don’t seem to use much outgoing email. Seems email can be construed as creating a contract with the hospital so most information is offered verbally without email confirmation. There may be some HIPAA requirements for information provison by email, but seriously…even Obama uses email and his job is pricklier than hospital billing.
Sly Costs and Other Barriers
Hospitals like USC which require a doctor be involved as a pre-requisite to getting general information and pricing are effectively saying that patients need to pay for the privilege of knowing how much something costs.
I point to this because getting a doctor to make an internal request requires payment of the doctor consultation fee ($900) labs fee ($350) and imaging fee ($300), or approximately $1400-$1500 for the privilege of knowing general information. Why is basic info treated like a state secret? Why does it feel like I’m being penalized for asking questions? My personal feeling is that silly requirements like this add to the healthcare costs we all pay…and who wants that?
Alternatively, I am told, if I go to the emergency room as a patient that I might be able to get better information. No kidding. I asked one of the UCLA doctor referral operators how I could find out what a surgeon charges in professional fees for hip replacement surgery and she suggested the emergency room as a resource for general and pricing information that was otherwise unavailable. So, I should go to the emergency room to get surgical pricing? Should I put “Confusion” down as the reason for the visit? No disrespect to the referral operator…but I have a few questions for the hospital’s policy group about why the emergency room is a better work-around than posting general guidelines on the hospital’s website.
Is the prestige of healthcare so high that it is entitled to function above other types of commerce? Shouldn’t there be some sort of consumer protections? Finance majors would call these sunk costs and they are pretty good examples of the kinds of distortions that exist in current U. S. healthcare. I’ll editorialize for a moment to say that U. S. healthcare reform is supposed to empower the kind of consumer shopping I’m doing here but the barriers to information seem so extreme…I’m not hopeful about how quickly the walls will come down. I believe these nutty extremes are one way healthcare providers discourage value shoppers like me, (and consumer behavior in you). But, to what end?
I got the impression that to date surgeons get very few calls asking how much they charge for professional services. One reason is the normal policy of many surgeons to not price an operation until after it is over. Offshore hospitals and top practices like the Cleveland Clinic and the Mayo Clinic offer pricing for complete surgical packages but the Southern California hospitals I contacted did not. You’ll see on the graph here that the Mayo Clinic in Scottsdale offers package prices for much less than Southern California hospitals.
As long as I’m already replaying every “Open the Kimono” joke I have ever heard and attributing causation for each hospital’s Waiting for Godot logic and Soviet-era-communication-styles, I’ll add a few notes. In fairness, doctors have a duty-of-inquiry as part of their requirements for informed consent and referral, but I don’t see how these legal concerns extend to basic pricing questions. It seems each hospital’s and doctor’s customer service people with whom I spoke are afraid of being understood as offering medical advice or conveying information that could be construed as creating a hospital’s commitment to me.
The forces against transparency seem so extreme that I imagine most patients give up before they get basic info. I sure thought about it.
Domestic Health Travel
There is growing interest in domestic Health Travel. Lowe’s Companies, Inc., the home goods retailer is trying to control its healthcare costs and improve the value it offers employees. Lowe’s offers employees who need major heart surgeries, the option of going to the Cleveland Clinic which is one of the world’s best heart hospitals.
Lowe’s pre-negotiates rates with the Cleveland Clinic, saving the company tens of thousands per surgery. Top healthcare can be counter-intuitive; the Cleveland Clinic has superior medical outcomes and lower prices than many other hospitals. Lowe’s shares those wins with employees by forgoing employee deductibles and paying the travel costs of those who opt-in to the program.
I contacted the Mayo Clinic as my domestic Health Travel touch point and it would be my U. S. preference for the simple reason that they seem to work on the basis of less of the crazy.
Shopping for Surgery Globally
I researched real global prices for hip surgeries in January 2011. The most vivid differences are between the retail price for hip surgery at Cedars-Sinai hospital in Los Angeles and Bumrungrad International in Thailand. The retail price of hip surgery at Cedars-Sinai is $120,731. Some discounts may apply. See here for more detail. Bumrungrad charges $18,300 (or 15.1% of what Cedars charges) for the same surgery. The comparison is important because it should ignite the urge in all of us to become better consumers of healthcare. I’ll mention that high healthcare costs are a downward driver of the general competitiveness of American businesses.
Shopping for healthcare internationally is a dream compared to hoop-jumping in California. It is easy to get general and pricing information from offshore hospitals in part, because they’re more used to global patients. It took approximately 30 minutes of active time (over a few days) to get basic information from the hospitals on this graph. I write books on Health Travel and can say with authority that these international hospitals are equivalent to UCLA, USC and Cedars-Sinai in orthopedics.
Contacting Global Healthcare Providers
Offshore hospitals are not a perfect shopping experience either; they make patients work a little too hard for details but at least they provide general information readily and without any of the crazy distortions or blocks. It is so much simpler and faster to get basic information globally that it makes me all the more red-faced about my experiences with U. S. hospitals.
Its easy. Just call, fax or email the International Patient’s desk of Health Travel hospitals you want to know more about. I sent a digital X-ray together with the initial diagnosis and got back basic information about procedures and pricing within a few days. Chances are high you’ll soon be communicating directly with a doctor who specializes in the type of medicine you need. If you’re the type who frustrates easily, you can default to using an International Medical Travel Facilitator to make your arrangements.
The Rat-King
U. S. healthcare is made up of impossibly complex iron triangles of entrenched interests. I describe it more colorfully as a Rat-King; German folk stories about a swarm of rats with tails that become entwined, even as the rats grow. The rats pull individually but cannot move except in cooperation. The Rat-King of insurance companies, pharma companies, hospitals and even doctors and the government prevent the creative destruction the PPACA will have to cause if it is to be successful in empowering normal consumer behaviors.
No wonder drug and insurance companies are freaked out and supporting healthcare repeal. Industries don’t voluntarily lower the barriers-to-entry that support industry structure, competitive advantage and associated profits. Doing the right thing for individual patients and national strength would be bad for business and shareholder value. And, by the way…the end of spending on the cold war created a “peace dividend”….when are we going to start talking about the “health dividend” which will surely come?
Consumer Affairs
If I buy a car in California where I live, I’m protected by a Consumer Affairs Bill of Rights that guarantees the seller will show me itemized prices before I buy anything. Shouldn’t healthcare have at least that much transparency? Shouldn’t buying medical services be at least as easy as buying a car?
One of the expressed goals of The Patient Protection and Affordable Care Act, (PPACA) is to make us all better healthcare consumers, create transparency and reward those who shop for better healthcare value. I’ll light a candle.
Opportunity
The nuisance factor of shopping for healthcare in the U. S., alone, may be reason to look offshore. In my case, reliable information was so hard to come by that the “If you can’t measure it you can’t manage it” adage comes to mind. I’ll predict that any company which empowers consumer choice by lowering the freakishly high customer burden to getting information could find big market success.
As for me, the way forward is undefined. All I know for sure is this is the year my hip gets its mojo back.

Scott Frankum is an author, analyst and creative director with a Masters of Business Administration in Global Management. He focuses on marketplace innovation that accelerates health travel and is a veteran of new ventures that magnify the value-add of creativity.. 









































