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Should Private Healthcare Insurance Providers in the UK Outsource
Surgery?
A Case Study of Hip and Knee Replacements in India
Rina Parmar, Anthony Brown, Olivia Cleevely, Akira Fukutomi, Katharine Hanan,
Eleanor Rowland.
Imperial College London, Business School, South Kensington Campus, London, SW7 2AZ,
United Kingdom
rina.parmar08@ic.ac.uk
Abstract
Objective – To determine the relevant benefits of outsourcing treatment, for both private
health care insurance providers and potential patients in the UK, using a case study of India.
Aims
1. To establish the perceptions of the UK public on private healthcare insurance and their
views on the outsourcing of treatment
2. Perform a cost analysis comparing private healthcare providers in India and in the UK with
respect to hip and knee replacements
3. To determine whether or not outsourcing hip and knee replacements to India would
compromise the quality of treatment the patient receives
4. To measure patient satisfaction of UK citizens getting hip and knee replacements in India
Methodology
Spire Healthcare in the UK was used as a point of comparison to the Apollo Hospitals Group
in India.
- Face-to-face questionnaire survey of 100 people to obtain a sample of public
perceptions to health insurers outsourcing treatment.
- Cost data was compiled from various sources with comparisons made between the two
organisations.
- Fieldwork was carried out in India. Information was collected regarding quality
standards, patient satisfaction and hospital management through interviews with staff
and patients. Comparable data for the UK was obtained from published sources.
Results and Conclusions
People were shown to be price sensitive towards insurance policies. Overall, there was a
willingness to accept outsourcing as a means of reducing premiums. India was shown to have
reduced price mark-ups, lower costs of equipment and medication as well as the lower wages
demanded by staff compared to the UK. Patient satisfaction and quality of care were not
compromised in India, although follow-up care was identified as being unsatisfactory.
Overall it was concluded that there is clear potential for health insurers to outsource elements
of treatment in order to expand their target market.
Keywords: Medical, Tourism, Outsourcing, Private, Healthcare, Insurance, Bupa, Apollo
Introduction
In the current economic climate, many businesses are seeking strategies to reduce costs to
gain a competitive advantage (Aron and Singh, 2005). The healthcare insurance business is