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7/28/2019 Medical Tourism - GRA
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MEDICAL TOURISM THE NEW FACE OF TOURISM
HEALTHCARE INDUSTRY
The health care industry is considered anindustry or profession which includes
peoples exercise of skill or judgment or the providing of a service related to the
preservation or improvement of thehealth of individuals or the treatment or care of individuals who are injured, sick,disabled, or infirm. The delivery of modern health care depends on anexpanding group of trained professionals
coming together as an interdisciplinary team .
MEDICAL TOURISM
Medical Tourism refers to movement of consumers to the country providing theservice for diagnosis and treatment.During the past few years, the number of
people going out of their home countryto consume health services has
significantly increased. The size of thismarket is estimated to be $40 billion
based on a Saudi Report in 2000. Duringthe past four years, the market grew at awhopping rate of 20-30% and isexpected to grow further. Consideringthis growth the current market size isestimated to be $100 billion. MedicalTourism industry offers tremendous
potential for the developing countries because of their low-cost advantage. The
advantages of medical tourism includeimprovement in export earnings andhealthcare infrastructure.
WHY INDIA?
The countries where medical tourism is being actively promoted include Greece,
South Africa, Jordan, India, Malaysia,Philippines and Singapore. India is arecent entrant into medical tourism.According to a study by McKinsey andthe Confederation of Indian Industry,
medical tourism in India could become a$1 billion business by 2012. The report predicts that: "By 2012, if medicaltourism were to reach 25 per cent of revenues of private up-market players,up to 2,297,794,117 USD will be addedto the revenues of these players". TheIndian government predicts that India's$17-billion-a-year health-care industrycould grow 13 per cent in each of thenext six years, boosted by medical
tourism, which industry watchers say isgrowing at 30 per cent annually.
Price advantage is a major selling point.The slogan, thus is, "First Worldtreatment' at Third World prices". Thecost differential across the board is huge:only a tenth and sometimes even asixteenth of the cost in the West.
Table No.1
The Comparative rates of surgeries
Surgeries India($)
USA($)
UK (GBP)
Open Hear tSurgery(CABG)
7,500 100,000
21,400
Total Knee Replacement
6,300 48,000 25,700
Hip
Resurf acing
7,000 55,000 24,100
LAHystere ctomy
4,000 22,000 11,800
LapCholcy stectomy
3,000 18,000 9,600
SpinalDec ompressionFusion
5,500 60,000 32,100
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http://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Professionhttp://en.wikipedia.org/wiki/Skillhttp://en.wikipedia.org/wiki/Healthhttp://en.wikipedia.org/wiki/Healthhttp://en.wikipedia.org/wiki/Professionalhttp://en.wikipedia.org/wiki/Interdisciplinary_teamhttp://en.wikipedia.org/wiki/Interdisciplinary_teamhttp://en.wikipedia.org/wiki/Interdisciplinary_teamhttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Professionhttp://en.wikipedia.org/wiki/Skillhttp://en.wikipedia.org/wiki/Healthhttp://en.wikipedia.org/wiki/Professionalhttp://en.wikipedia.org/wiki/Interdisciplinary_teamhttp://en.wikipedia.org/wiki/Interdisciplinary_team7/28/2019 Medical Tourism - GRA
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ObesitySur gery(GastricBypass)
9,500 65,000 34,800
Dental, eye and cosmetic surgeries inWestern countries cost three to four times as much as in India. India has a lotof hospitals offering world classtreatments in nearly every medicalsector.
MEDICAL TOURISM AS ANINDUSTRY
Medical tourism can be broadly defined
as provision of cost effective privatemedical care in collaboration with thetourism industry for patients needingsurgical and other forms of specializedtreatment. This process is beingfacilitated by the corporate sector involved in medical care as well as thetourism industry - both private and
public.
BENEFITS OF MEDICAL
TOURISM
Tangible Foreign exchange earrings which enableeconomic wealth of nation Cost Advantage in Tariff over theDeveloped countries Improve information sharing Increase in efficiency of patientcare process, cutting edge treatment. Improvement in hospital supplychain efficiency Strategic alliances with business
partners within and outside the country Technology and KnowledgeTransfer Better logistics performance bothin internal and external
Creation of employmentopportunities in the industry Better utilization of Infrastructureand skilled manpower Opportunity for development in
Infrastructure in Health, Tourism andTravel. Economies of scale. Connectivity with air, road, railand information and communicationindustries Clustering of medical Travelers Health opportunities for foreign
patients may lead to better standards athome. Scope for Research and
Development to offer comprehensivemedical solutions.Intangible International acceptance of countryas a global healthcare provider Social and cross culturalexperience International customer relations Global Marketing and MedicalTrade relations Brand image of nation as world-class healthcare destination. Competitive advantage Better coordination among the
partners i.e. hospital and hospitalityindustry. Public and Private Partnerships Patient satisfaction MEDICAL TOURISM IN INDIA
THE CURRENT SCENARIO
Medical Tourism is poised to be the nextIndian success story after InformationTechnology. According to a Mckinsey-CII study the industrys earning potentialestimated at Rs.5000-10000 Crores by2012. Worldwide, healthcare is said to
be a $3-trillion industry, and India is in a
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position to tap the top-end segment byhighlighting its facilities and services,and exploiting the brand equity of leading Indian healthcare professionalsacross the globe.
Medical Tourism", the term refers tothe increasing tendency among peoplefrom the UK, the USA and many other third world countries, where medicalservices are either very expensive or notavailable, to leave their countries insearch for more affordable healthoptions, often packaged with touristattractions.
More importantly, Medical Tourism isgrowing rapidly and turning out to be animmense business opportunity for nations that are positioning themselvescorrectly. Last year, just five countries inAsia Thailand, Malaysia, Jordan,Singapore and India- pulled in over 1.3million medical travelers and earnedover $1billion (in treatment costs alone).In each of these nations, medical travelspends are growing at 20% plus year-on-year. Elsewhere around the world, HongKong, Lithuania and South Africa areemerging as big medical/healthcaredestinations.
HEALTH TOURISM IN INDIA ADVANTAGES ANDOPPORTUNITIES
The inflow of health tourists from theWest, especially the UK, US and someof the European countries has beenon the rise for the last couple of years.Price difference or affordability of thetreatment, coupled with quality of doctors are the main reasons for thegrowing western traffic.
The quality of Indian hospitals hasimproved significantly and now matcheswith the best in any part of the world.India has more than 100 healthcareinstitutions, which are of
international standard.
Many hospitals in India today have theinfrastructure and equipment that matchwith the best centers in the world, be ittransplantations(liver/kidney/heart or
bone marrow), cancer treatment,including radiotherapy, neurosurgery,including sterotactic surgery.,angioplasty and cardiac surgery (bypassand paediatric)
Public-Private Partnership combinesinternal hospital expertise with supplychain and logistics expertise.
The SWOT analysis of Indian medicaltourism business is:
Table No.2
Strength Weaknesses
1) Quality of service2) Exquisite Locations3) Alternative medicalcures like Yoga,Homeopathy andAyurveda.
1) Lack of infrastructure2) Lack of uniform
pricing policy3) Poor infrastructure inGovt. Aided hospitals4) Lack of proper Institute on medicalInstrumentation.
Opportunities Threats1) Impact on Forexreserve2) Contributions inGDP3) Sharp rise inmedical as well astourism Industry.
1) Foreign players mayenter into the market2) Lack of foreignaccreditation
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ROLE OF GOVERNMENT
The role of Indian Government for success in medical tourism is two-fold:
Acting as a Regulator to institute auniform grading and accreditationsystem for hospitals to build consumerstrust.
Acting as a Facilitator for encouraging private investment in medicalinfrastructure and policy-making for improving medical tourism.
For facilitating investment the policyrecommendations include:
Recognize healthcare as aninfrastructure sector, and extendthe benefits under sec 80-IA of the IT Act. Benefits include taxholidays for five years andconcessional taxation for subsequent five years.
The government should actively
promote FDI in healthcare sector. Conducive fiscal policies -
providing low interest rate loans,reducing import/excise duty for medical equipment
Facilitating clearances andcertification like medicalregistration number, anti-
pollution certificate etc.The above measures will kick-starthospital financing, which is struggling
now due to capital intensive and lowefficiency nature of healthcare business.
For facilitating tourism the governmentshould:
Reduce hassles in visa processand institute visa-on-arrival for
patients Follow an Open-Sky policy to
increase inflow of flights into
India Create Medical Attachs to
Indian embassies that promotehealth services to prospectiveIndian visitors
GOVERNMENT PLANS FOR ATTRACTING MEDICAL TOURISM TO INDIA
To promote growth in the Indian medical travel industry , the Indian governmenthas plans to improve health infrastructure. The government iscurrently in the process of increasing thenumber of hospitals , clinics , and clinicallaboratories in urban as well as rural
parts of the country. Incentives and taxholidays are being offered to hospitals and dispensaries providing health travel facilities.
The Indian medical travel and health care sector offers plenty of opportunitiesfor businessmen, medical equipmentmanufacturers, healthcare service
providers, and tourist agencies, and thegovernment is encouraging them toinvest in therapeutic and preventivehealth services so as to increase medical travel to India. The government has
published analytical reports on theavailable opportunities in the Indian
health care industry so corporate housescan make informed decisions regardingthe Indian medical tourism sector.
PRICE
The price range offered by the Indianmedical industry is unbelievable because
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PROMOTIONAL ACTIVITIES TO
PROMOTE MEDICAL TOURISM
CME ( Continuous medicaleducation for doctors)
Patient Education Progress Free health Checkup camps. Tie ups with various hospitals
and insurance companies abroad. Participation in Health Expos
abroad. Tie ups with Embassies. Advertisement campaigns. Nodal centers in other countries. Reduction of Excise duty from
17% to 8% on all goods produced in the pharmaceuticalsector as per the Budget 2008-2009.
FACTORS ENHANCING MEDICAL
TOURISM IN INDIA
a) Cost Competitiveness The KeydriverThe main reason for Indias emergenceas a preferred destination is the inherentadvantage of its healthcare industry.Today Indian healthcare is perceived to
be on par with global standards. Some of the top Indian hospitals and doctors havestrong international reputation. But themost important factor that drivesmedical tourism to India is its low costadvantage. Majority of foreign patientsvisit India primarily to avail of FirstWorld Service at Third World Cost.
Fig.1
Source: Business World India and
Indian Brand Equity FoundationAs the table above shows, India hassignificant cost advantages in severalhealth procedures making it a preferreddestination
b)The Service Spectrum
India offers a variety of services for overseas patients. The table below
presents a classification of the servicespectrum.
Fig.2
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The Indian consumer has ready access tonew innovations in the field of healthand medicine. The companies areconstantly acquiring latest technology
either through partnerships or developing them indigenously. Thegovernment is fully supporting the causeof state of the art infrastructure by
providing support in setting up newhospitals and financing them.
BIBLIOGRAPHY
Alvarez, David P.; Connecting peopleto the promise of healtchare, No. 15
(2000)CII and Mekinsey, Healthcare In India The Road Ahead, (2006)Daschle Tom, Achieving UniversalHealth Coverage, (2007)Davenport Karen, Health CareBenefits, (2007)Hautea, Dr. Randy A.; Krattiger, Dr.Anatole F. And Van Zanten, Ir. Jasper E;Healthcare costs comparisons, No. 18(2000)
http://en.wikipedia.org/wiki/Healthcare_ in_Indiahttp://timesofindia.indiatimes.com/More
_options_for_health_insurance/articleshow/1982238.cmshttp://www.cbc.ca/news/background/healthcare/medicaltourism.htmlhttp://www.deloitte.com/dtt/whitepaper/0,1017,sid%253D34239%2526cid%253D71669,00.htmlhttp://www.indiatogether.org/2007/jan/hl
t-hltcare.htmhttp://www.nature.com/nm/journal/v9/n4/full/nm0403-377a.htmlhttp://www.who.int/mediacentre/factsheets/fs172/en/index.htmlSeshamani Meena, Opportunity Costs and Opportunities Lost: Businesses Speak Out About Health Care , (2007)
Sonam Jagasia, A Report on MedicalTourism in India Issue 2 (2008)
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