Motivation and Decision on Medical Tourism Service in Thailand

The 14th International Conference on Business Innovation and Technology Management

1The 14th International Conference on Business Innovation and Technology Management

Natworadee Kanittinsuttitong ([email protected])College of Innovation Management

Rajamangala University of Technology Rattanakosin, Thailand

Motivation and Decision on Medical Tourism Service in Thailand

June 4th - 6th, 2015, Bangkok


TOPICS

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Research QuestionSummary ResultsMotivationTheoretical BackgroundTheoretical FrameworkMethodology and DataEmpirical ResultsDiscussion and Conclusion


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RESEARCH QUESTION

In order to gain the competitive advantages and compete in a global market, this research is to determine the motivations and the factors that affect the decide on service of a medical tourism in Thailand ?

Medical tourism is the situation that the travelers who travel to foreign countries to get medical service or healthcare and traveling together (E.Cohen, 2008)


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SUMMARY RESULTS

• The result shown that there are two different groups of medical tourist, medical

focused tourist and tourism focused tourist.

• 1. Medical focused tourists : Come to the country with the major purpose of

having necessary medical treatment, cosmetic surgery and others optimum

choice of treatment such sex-transplant, then taking their time on vacation.

Therefore, they focus mainly on factors associated with medical treatment and

service such as cost, quality and reputation of hospital and physician.


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SUMMARY RESULTS

• 2 Tourism focused tourists : Come for tourism and mostly having their health

check, dental care and wellness treatment. This kind of tourist emphasize on

those factors associated with tourism service such as attractive destination, the

convenience of hotel and travel, entertainment and leisure place.


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MOTIVATIONThe Significant of this study.• The medical tourism market in 2009 was approximately 35,000 million USD.• Thailand's on the top ranking of countries that have been popular over the world • In 2012, more than 3 million foreigners came to receive medical services in

hospital and other healthcare facilities ,which generated approximately 70,000 million baht to the nation.

These growing market are not only create massive of revenue into Thailand but also create a new career for Thai residences.


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MOTIVATIONThe Significant of this study.• Not only Thailand that focus on the

medical business but India, Singapore and Malaysia and many countries around the world also jump into this battle.

• We need to define & strengthen our competitive advantage in order to keep and extend our market share


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THEORETICAL BACKGROUND

• Factors that affect the rise of tourism consists of two main factors

• 1. Push factors : Good Economy, High Cost, Health Regulation, Long Waiting-time, Lack of Confidence.

• 2. Pull factors : Low Cost, Country/Physician Image & Reputation, Beautiful Landscaped, Great Care, Low-Regulation, Variety of Health Services.

I. PUSH- PULL FACTORS IN TOURISM

Push Factors Pull Factors

Concept of medical tourism was formed by three main theories;

D. Weaver and M. Oppemann, 2000


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• Factor Condition: beautiful landscapes, warm climate, low cost of living, politics calm, less restrictive health law, social and cultural services, kindness.

• Demand Condition : Medical need & Tourism need• Related and supporting Industries: tour agency, hotel,

airline, transportation, entertainment business, restaurant & leisure, embassy, other related business.

• Firm strategy, structure and rivalry : improvement of quality and medical standards , providing value added services , opening overseas branches, contracting business partnerships.

II. NATIONAL COMPETITIVE ADVANTAGE

Firm Strategy, Structure,

Rivalry

FactorConditions

Demand Conditions

Related & Supporting Industries

M. Porter, 1990


• using the theory of Maslow's hierarchy of need as a

main theory

• (1) Basic Healthcare

• : Basic medical care such as health checkups, dental

care, immunization and preventive screening.

• : Primarily focus on tourism and select standard health

services that located in tourism area with affordable

price.

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III. HIERARCHY OF HEALTH CARE NEEDS

Opti

mum HealthHealth

Enhancement

Medically-necessary Treatment

Basic Healthcare1

2

3

4

P.Carrera and R.Vivien, 2012 adapted from Maslow’s Theory


• (2) Medically-Necessary Treatment

• : required to obtain medical treatment, such surgery

• : Mainly focus on medical treatment and take a short

trip nearby hospital or choose travel destinations that

suitable for their recuperation.

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Opti

mum HealthHealth

Enhancement


Basic Healthcare1

2

3

4


• (3) Health Enhancement

• : Additional medical service to fill, to modify, or to

surgery some of the body including sex-

reassignment surgery.

• : Mainly consider f medical services, while they will

arrange the tourism to be during or after receiving

medical treatment.

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Opti

mum HealthHealth

Enhancement


Basic Healthcare1

2

3

4


• (4) Optimum Health

• : A need to maintain in good health or to be in a

better health condition such spa, massage,

acupuncture, traditional medicine, detoxification,

and holistic healthcare treatment.

• : Primarily focus tourism and often use health care

services that located in tourist areas.

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Opti

mum HealthHealth

Enhancement


Basic Healthcare1

2

3

4


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THEORETICAL FRAMEWORK

Hierarchy of Health Need

Factor Condition

Firm Strategy, Structure &Rivalry

Demand Condition

Related & Support Industry

MedicalFocus

TourismFocus

•Independent Variables = Diamond model (factor condition, demand condition, related & supporting industry ,firm strategy, structure and rivalry)•Dependent Variable = Type of Medical Tourist•Mediator Variable = Hierarchy of Health Care Needs


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METHODOLOGY AND DATA

• Firstly, researcher have collected qualitative compiled, analyzed and summarized. Secondly, quantitative research were collect throughout the country.

• Population of qualitative research are the administrator of private hospital, clinic, cosmetic surgery, dental clinic, wellness institution, spa house, holistic treatment providers, massage service and providers.

• Population of quantitative research are foreigners who have both healthcare service and tourism in Thailand. In this research, sample were collected from Bangkok, Chaingmai, Pattaya, and Samui and Phuket for both qualitative and quantitative research.


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METHODOLOGY AND DATA

Sample : Those located in Bangkok, and main tourist area such Chaingmai, Pattaya, Phuket, Samui Island, and Hua Hin.

Data Collection : In-depth interview by using various tools such personal meeting, telephone interview, and emailing. Quantitative research employ by using questionnaires as a research tool.

Research limitationConcept limitation• Medical tourist : healthcare service + tourism service • Exclude : expatriate, retirement, and exchange student or officersScope limitation, this research only limit in the nation of Thailand


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5.Lifestyle transformation4.Optimum

3.Surgery+Cosmetic

2.Medical/Illness

1.Basic Healthcare+Dental

RESULTS


RESULTS

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Medical focus tourist

Opti

mum HealthHealth

Enhancement


Basic Healthcare

• Factor Condition: • medical treatment• Not too far distance• Affordable travel price• Climate that suitability for rehabilitation • available and legal• Demand Condition : Medical Demand• Affordable price• Reputation of the hospital• Expert of physician and therapist• Medical standards (JCI)• Speed of Service• Modern Technology• Excellent Care• Related and supporting Industries: • Medical Agency & Tour Agency• Hotel & Accommodation near by Hospital• Special Transportation (In some case)• Firm strategy, structure and rivalry :• Improvement of quality and medical standards ,• Providing value added services • Opening overseas branches• Contracting business partnerships.


RESULTS

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Opti

mum HealthHealth

Enhancement


Basic Healthcare

• Factor Condition: • Good country image• Beautiful landscapes• Suitable Weather• Low cost of living• Politics calm• Cultural of services and hospitality• Kindness of Residence• Demand Condition : Tourism need• Tourism Destination• Special Purpose Tourism• Related and supporting Industries: • Tour agency• Convenience of Hotel & Accommodation• Affordable of traveling• Entertainment business• Restaurant & Leisure• Firm strategy, structure and rivalry • Differentiate & Unique •Special promotion & package• Marketing Event & Road Show

Tourism focus tourist


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VariableItems/Statements Factor

LoadingsCommonality Variance Cronbach’s

alpha

Country Factor1

C1: The beauty of the landscape and attractions. 0.8018 0.6429

0.5584 0.8568

C2: The warmth of the climate for relaxing. 0.7792 0.6072

C3: Appropriateness of the living cost. 0.6436 0.4142

C4: The stability and security in the country. 0.7914 0.6263

C5: The austerity of the law in the country. 0.7184 0.5161

C6: Thailand culture with services mind. 0.7384 0.5452

C7: Reputation of Thai food. 0.7465 0.5573

Country Factor2

C8: Distance of travel to Thailand.

0.82300.6773

0.6902 0.7708C9: The affordable cost for the trip.

0.80330.6453

C10: The ease of travel to Thailand.

0.86480.7479

Factor Loading and reliability


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alpha

Healthcare Factor1

H1: The period of waiting for treatment shorter than home country.0.7206 0.5193

0.4636 0.7043

H2: Cost of medical service cheaper than home country.0.6322 0.3997

H3: Variety of health services, some of which are not available in home country.0.6508 0.4235

H4: Treatment is legal.0.6743 0.4547

H5 The confidentiality of the treatment.0.7216 0.5207

Healthcare Factor2

H6: The quality and standards of the service provider. 0.7717 0.5955

0.5876 0.7736

H7: Reputation and expertise of the service provider.0.8742 0.7642

H8: Modern of technology and medical equipment.0.7629 0.5820

H9: The quality of service is good and friendly.0.6820 0.4651

H10: The hospital/Clinic offers accommodation during their treatment.0.6972 0.4861

Healthcare Factor3

H11: The available of healthy food /Halal food.0.7483 0.5600

0.6771 0.8769

H12: Reference from world class or well-known person.0.8417 0.7085

H13: Results of treatment (Testimonial)0.8717 0.7599

H14: Advice from a doctor / Agency / acquaintances0.8325 0.6931

H15: After treatment service0.8151 0.6644


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alpha

RelatedBusinessFactor

R1: The available of public transportation 0.6496 0.4220

0.5705 0.7476R2: The hospital/clinic has pick up service 0.8371 0.7007R3: The entertainment and recreation nearby hotel / hospital. 0.7320 0.5358R4: Hospital/Clinic is located near the tourist attraction 0.7896 0.6235

Marketing Factor

MKT1: International branches. 0.8451 0.7142

0.7392 0.8824MKT2: The contact with the hospital / doctor in home country. 0.8779 0.7707MKT3: The cooperation between the government and the health service. 0.8863 0.7855MKT4: International exhibition or trade fair 0.8285 0.6864


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Model testing: Linear and ordered probit regressionLinear OProbit

country1 0.9022 *** 1.6907 ***country2 0.4048 * 0.8169 **health1 -1.0796 *** -2.0395 ***health2 0.9138 *** 1.8399 ***Health3 -0.4517 ** -0.7421 *Relate 0.9672 *** 1.7304 ***Market 0.7756 *** 1.4498 ***Constant 1.6308 *** cut1 0.1871 cut2 1.8667 ***cut3 3.4263 ***N 220 220 RSS 84.4980 loglikelihood -206.9075 -196.3277 F-test 15.6099 *** Chi-square 91.9570 ***R2 0.3401 Psuedo-R2 0.1898


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DISCUSSION • Contribution:• - Business: Understand the motivation & decision of each customer groups.

So..Executive can make a strategic & marketing plan separately, effectively• - Academic Field: Establish new “Medical Tourism Model” which so new in academy• Industrial Gap:• - There are still gaps in medical tourism cluster that need to be fill-in such as transportation,

interpreter, and food service provider. • - Connection between medical providers and tourism providers not as good as it should.

Thus the opportunity was lose in many cases.• Further research:• - Each level of healthcare need can be separately study. • - There are many related potential market emerging in Thailand that should be more focus

and promote in Thailand such Retirement Tourism, Drug Cessation