Economics of Medical Tourism

8/9/2019 Economics of Medical Tourism

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ECONOMICS OF INDIANECONOMICS OF INDIAN

MEDICAL TOURISMMEDICAL TOURISM

Maj Gen (Dr) M Srivastava,VSM**Maj Gen (Dr) M Srivastava,VSM** (Retd)(Retd)

Director ICRI HealthDirector ICRI Health


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A multibillion dollar industry

India a International medical tourisms hub

One of the hottest sectors in India (Public Health Foundation of India)

Joint Replacement Surgery

Dental Surgery

Heath Tourism is to provide World Class Health treatment at competitive affordable prices.


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Concept of Medical Value Tourism

Is it a new concept ? - No

Dates back > thousands of years.

Greek pilgrims travelled in Saronic Gulfcalled Epidauria,sanctuary of the healinggod Asclepius

Yes. Marketing of Medical Value Tourism is

relatively new concept.


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Economics of tourismEconomics of tourism

Tourism third largest net earner of foreignTourism third largest net earner of foreign

exchangeexchange Indias share in International Tourist arrival Indias share in International Tourist arrival

2002 - 0.34 percent2002 - 0.34 percent

2005 - 0.49 percent total 3.92 million2005 - 0.49 percent total 3.92 million The World Travel Tourism Council - India asThe World Travel Tourism Council - India as

one of the foremost growth centre in the world inone of the foremost growth centre in the world in

coming yrs.coming yrs.

Travel & Tourism sector creates more jobs permillion rupees of investment plan, than any othersector of the economy.


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Can we have similar Map for MedicalTourism for India ?


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India has world class corporate hospitals andIndia has world class corporate hospitals andexcellent treatment Centres in the world.excellent treatment Centres in the world.

Hospital infrastructure & technology on par withHospital infrastructure & technology on par withUSA, UK & other European countriesUSA, UK & other European countries

No waiting periodNo waiting period

Success rate India -- 98.7%Success rate India -- 98.7%

-- US 97.5%-- US 97.5%

Immediate attention / treatment / surgeryImmediate attention / treatment / surgery

Best Nursing Care with compassionBest Nursing Care with compassion Language no barrier English speaking staffLanguage no barrier English speaking staff

Low cost (1/10th), high quality, affordable best

healthcare


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Apollo Hospital Hyderabad Max Hospital Delhi Fortis Hospital, Delhi

Jaslok Hospital, MumbaiBreach Candy Hospital Wokhardt Hospital

Bangalore

Growth of International Standard Hospitals
http://images.google.co.in/imgres?imgurl=http://bp0.blogger.com/__1SltgWWSAw/RdoEPP10I8I/AAAAAAAAAEc/n5I9yf0l74s/s320/Picture%2B182.jpg&imgrefurl=http://capcarl.blogspot.com/2007/02/wockhardt-hospital-bangalore.html&h=240&w=320&sz=16&hl=en&start=2&um=1&tbnid=XBQDPBuO_Ou5TM:&tbnh=89&tbnw=118&prev=/images%3Fq%3DWockhardt%2BHospital%26um%3D1%26hl%3Den%26sa%3DXhttp://images.google.co.in/imgres?imgurl=http://www.in.emb-japan.go.jp/Japanese/Medical/breachcandy.jpg&imgrefurl=http://www.in.emb-japan.go.jp/Japanese/Medical/mumbaihospital.html&h=596&w=794&sz=61&hl=en&start=7&um=1&tbnid=7Dl6odGKZuwg_M:&tbnh=107&tbnw=143&prev=/images%3Fq%3DBreach%2BCandy%2BHospital%26um%3D1%26hl%3Den%26sa%3DGhttp://images.google.co.in/imgres?imgurl=http://sri.co.in/universalmedicalalliance/hospital_files/abt_img1.jpg&imgrefurl=http://sri.co.in/universalmedicalalliance/hospital.asp&h=210&w=164&sz=23&hl=en&start=4&um=1&tbnid=Z7jdoMuuCXd5wM:&tbnh=106&tbnw=83&prev=/images%3Fq%3DJaslok%2BHospital%2BMumbai%26um%3D1%26hl%3Den%26sa%3DGhttp://images.google.co.in/imgres?imgurl=http://www.tsiplc.com/Images/fortis.jpg&imgrefurl=http://www.tsiplc.com/benefit.html&h=300&w=225&sz=12&hl=en&start=8&um=1&tbnid=YiIy6VQfMxQ2wM:&tbnh=116&tbnw=87&prev=/images%3Fq%3DFortis%2BHospital%2BDelhi%26um%3D1%26hl%3Den%26sa%3DGhttp://www.meditourinternational.com/images/hospital_mssh.jpghttp://www.medvarsity.com/vmu1.2/dmr/dmrdata/courses/hm/images/hyderabad.jpg


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Macro EconomicsMacro Economics

ofof

Medical TourismMedical Tourism

88


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Confederation of Indian Industry (C II) sponsored McConfederation of Indian Industry (C II) sponsored McKinsey & Co. study.Healthcare in India : The RoadKinsey & Co. study.Healthcare in India : The Road

Ahead report:-Ahead report:-

1.3 million medical tourists visit Asia / year1.3 million medical tourists visit Asia / year

Nos. of US patients seeking cheaper care abroad -Nos. of US patients seeking cheaper care abroad -

grew to 7,10,000 / yeargrew to 7,10,000 / year

Over 1, 50000 medical tourists travelled to India in 2002Over 1, 50000 medical tourists travelled to India in 2002bringing in earnings of $ 300 million.bringing in earnings of $ 300 million.

2006-07 > 3,000002006-07 > 3,00000


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The size of Indian Medical Tourism sector estimated in 2002The size of Indian Medical Tourism sector estimated in 2002to be min 1,00000 to 1,50,000 foreign patients per yearto be min 1,00000 to 1,50,000 foreign patients per year

(Medical Tourists) .(Medical Tourists) .

The annual growth rate of Medical Tourism in IndiaThe annual growth rate of Medical Tourism in India

2000 15% per year2000 15% per year

2007 30% per year2007 30% per year

Kerala - > 8000 patients annually.Kerala - > 8000 patients annually.

Cardiac, Ortho & Ayurveda treatmentCardiac, Ortho & Ayurveda treatment

- KIMS (2007) 40,000 medical tourism patients- KIMS (2007) 40,000 medical tourism patients

Hospital A in Bangalore - reported 900 medical tourists perHospital A in Bangalore - reported 900 medical tourists per

year.year.


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Indias Tourist Industry could yield from $ 1.2Indias Tourist Industry could yield from $ 1.2billion presently to $ 2.2 billion annually by 2012 .billion presently to $ 2.2 billion annually by 2012 .

The growth rate of Medical Tourism Industry @The growth rate of Medical Tourism Industry @12% in 2002 will go to @ 30% annually by 2012 .12% in 2002 will go to @ 30% annually by 2012 .

Up market private care in India to be worth fromUp market private care in India to be worth from

Rs.15000 crores to Rs. 30,000 crores by 2012Rs.15000 crores to Rs. 30,000 crores by 2012

Medical Tourism revenue can potentially riseMedical Tourism revenue can potentially risefrom Rs. 5000 crores to Rs.10,000 crores perfrom Rs. 5000 crores to Rs.10,000 crores per

year.year.


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$ 17 billion Indian Healthcare Industry contributes$ 17 billion Indian Healthcare Industry contributes

about 4% -5% of GDP. It is expected to grow @ 13%about 4% -5% of GDP. It is expected to grow @ 13%

annually in next 5 yrs.annually in next 5 yrs.

Health care spending in India will increase from Rs.Health care spending in India will increase from Rs.

86,000 crores in 2000-2001 to over Rs. 200,00086,000 crores in 2000-2001 to over Rs. 200,000crores by 2012.crores by 2012.

Private Health care share will form the largest of thisPrivate Health care share will form the largest of this

@ Rs.156,000 crores and growth will be driven by@ Rs.156,000 crores and growth will be driven byrising life style diseases.rising life style diseases.


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Travel tourismTravel tourism

++

pleasurepleasure, physical &, physical & mental relaxationmental relaxation

++

value addition of medicalvalue addition of medical treatment attreatment atlowest costlowest cost

Medical TourismMedical Tourism

Anatomy of Medical Value Travel (EonomicPotential)


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Advantage IndiaAdvantage IndiaUnique medical value services to foreign patientsUnique medical value services to foreign patients

that supersedes the competition :that supersedes the competition :Yoga

Meditation /SpiritualismMeditation /Spiritualism

Ayurveda healingAyurveda healing

India offers a unique basket of services to an individualIndia offers a unique basket of services to an individual

that is difficult to match by other countries (CII)that is difficult to match by other countries (CII)

Less regulatory & legal problemsLess regulatory & legal problems


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India has number of World Heritage Monuments &India has number of World Heritage Monuments &

Archeological sites attracting tourists /medicalArcheological sites attracting tourists /medicaltourists Requirement strategic marketing for Medicaltourists Requirement strategic marketing for Medical

TourismTourism

World heritage sites- Taj Mahal, Ajanta & Ellora,World heritage sites- Taj Mahal, Ajanta & Ellora,

Khajuraho, Bhimbetica rock paintingsKhajuraho, Bhimbetica rock paintingsBuddhist sites Shravasti, KushinagarBuddhist sites Shravasti, Kushinagar

Ancient & religious places Varanasi, Udaipur,Ancient & religious places Varanasi, Udaipur,

Cultural /Festival tourism Ladakh festival, KhajurahoCultural /Festival tourism Ladakh festival, Khajurahofestivalfestival

Winter Sports best sites -Skiing Gulmarg, AuliWinter Sports best sites -Skiing Gulmarg, Auli


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Economic Crisis, Credit Crisis & Recession inEconomic Crisis, Credit Crisis & Recession inUSA - Will it affect Medical Tourism marketUSA - Will it affect Medical Tourism market

in India ?in India ?NoNo

There are almost 50 million Americans withThere are almost 50 million Americans with

no health insuranceno health insuranceCanada - > 700000 patients waiting forCanada - > 700000 patients waiting forprocedures/surgery for > 6 months- 1yrprocedures/surgery for > 6 months- 1yr

It can have a very positive impact on tourismIt can have a very positive impact on tourismindustry in India for hospital & allied healthcareindustry in India for hospital & allied healthcareindustry who position themselves in the rightindustry who position themselves in the rightdirection .direction .


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http://www.willnichols.me.uk/2006/pics/india/ranakpur3.jpghttp://www.petersharpe.com/Other/tajmahal.jpg


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Planning Commission ReportPlanning Commission Report --

Govt will provide M Visa to Medical Tourists onpriority.

Most patients visit from SAARC + US &UKMost patients visit from SAARC + US &UK

Lowest cost -Lowest cost -o Heart Bypass Surgery -Heart Bypass Surgery -

IndiaIndia ThailandThailand Singapore US / UKSingapore US / UK

$ 6000$ 6000 $ 7894 $ 23,983 $19,700$ 7894 $ 23,983 $19,700

o Heart Valve Replacement SurgeryHeart Valve Replacement Surgery

$ 8000$ 8000 $ 10,000 $ 12500 US $ 20000$ 10,000 $ 12500 US $ 20000

UK & 90,000UK & 90,000


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Micro EconomicsMicro Economics -- Comparative Cost Analysis

Metal Free Dental BridgeMetal Free Dental Bridge

India USIndia US

$ 500$ 500 $ 5500$ 5500

Bone Marrow TransplantBone Marrow TransplantIndiaIndia USUS UKUK

$ 30,000 $ 250,000- $40,000 $ 150,000$ 250,000- $40,000 $ 150,000

Cosmetic SurgeryCosmetic Surgery

India ThailandIndia Thailand US SingaporeUS Singapore

$ 2000 $ 35,00 $ 10,000$ 35,00 $ 10,000 --

Spinal FusionSpinal Fusion$ 5500 $ 7000$ 7000 $ 62,000$ 62,000 $ 9000$ 9000


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Need of the hour:

INDIA NEEDS PROACTIVE GLOBAL MEDICAL

TOURISM MARKETING STRATEGIES


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Marketing strategies to maximizeMarketing strategies to maximize

economic potentialeconomic potential

Aggressive marketing & awareness programsAggressive marketing & awareness programsgloballyglobally Publish details of Indian Corporate Hospitals withPublish details of Indian Corporate Hospitals with

core competencies eg Cardiac Surgery J Rcore competencies eg Cardiac Surgery J R

Surgery, IVF, Cosmetic Surgery, Dental SurgerySurgery, IVF, Cosmetic Surgery, Dental Surgery

Advertise - rates of all procedures in allAdvertise - rates of all procedures in allInternational / International Magazines, journals,International / International Magazines, journals,

magazines & News Papers of the Worldmagazines & News Papers of the World Web sites List, details, Tele & E mail ID ofWeb sites List, details, Tele & E mail ID of

Hospitals & Executives dealing with medicalHospitals & Executives dealing with medicaltourismtourism


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Special attractive treatment, travel &Special attractive treatment, travel &

tourism packages at competitive ratestourism packages at competitive rates

Package medical tourism through Travel &Tourism Cos.

Health Insurance for treatment in India

Regular Chartered Medical TourismInternational Inbound Flights with all

peripheral arrangements in-flightmedical care - Car/ ambulance transfer- Hotel Hospital / Hotel Wellnesstourism-Return to home country follow up


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Word of mouth businessWord of mouth business to change toto change to

media driven business -media driven business -on line directory for medical

tourism

Need for India International MT Media

Marketing international hospital cannot succeed without

Internet Branding IMT mustTransparency & no intra hospital competition - properpatient centered approach

Facilitator Promote hospital & partners on their Web

sites.Regular updating of web site, content & rates


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Form Corporate Hospitals Medical Tourism ConsortiumForm Corporate Hospitals Medical Tourism Consortiumwith front offices in UK, USA, Canada, Middle East, Southwith front offices in UK, USA, Canada, Middle East, SouthEast Asian countries -East Asian countries -

Medical Tourism Facility ManagersMedical Tourism Facility Managers - in Europe, Middle- in Europe, MiddleEast, South East Asia - for networking with foreignEast, South East Asia - for networking with foreignhospitals & Consultants for patient reference on profithospitals & Consultants for patient reference on profitsharing per patient basis.sharing per patient basis.

Form Medical Tourism Association (IndiaForm Medical Tourism Association (India)- for laying down)- for laying downMT business ethics, rates, wellness tourism policies,MT business ethics, rates, wellness tourism policies,procedures etc.procedures etc.

Medical Tourism Regulatory Body /Ethics CommitteeMedical Tourism Regulatory Body /Ethics CommitteeSpecial Insurance PackagesSpecial Insurance Packages


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CollectCollect Data base of Uninsured patients USA, UK,Data base of Uninsured patients USA, UK,Canada & other countries patient segmentationCanada & other countries patient segmentation

Collect Data base of patients waiting in Canada, UK,Collect Data base of patients waiting in Canada, UK,

USA other European & third world countriesUSA other European & third world countries

Motivate Indian/International Insurance Cos forMotivate Indian/International Insurance Cos for

providing low cost Procedure Covers for overseasproviding low cost Procedure Covers for overseas

patients.patients.

Approach Govt Tax benefits for Medical TourismApproach Govt Tax benefits for Medical Tourismsectorsector


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Training Needs -for exponential economicTraining Needs -for exponential economicgrowth & sustainable Indian Medical Tourismgrowth & sustainable Indian Medical Tourism

Institutional Training University coursesInstitutional Training University courses

Structured courses tailor made syllabusStructured courses tailor made syllabus

Training in Tourism Marketing Tourism Dept,Training in Tourism Marketing Tourism Dept,

Travelling industry, Hospitality & Hotel IndustryTravelling industry, Hospitality & Hotel Industry

Training modules in soft skills MT staffTraining modules in soft skills MT staff

Modular Short Training Courses for Specialists/Modular Short Training Courses for Specialists/

Hospital Executives in Customer Care ManagementHospital Executives in Customer Care Management- International Patients- International Patients

Training of Spa/Wellness Institution staffTraining of Spa/Wellness Institution staff


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AHMEDABAD BANGALORE DELHI HYDERABAD MUMBAI

MB A (Health Care Management)

MBA (HCM)Two years full time PG regular course with optionto specialize in final year either in HospitalOperations Management (HOM) or MedicalTourism (MT)

Degree will be awarded by University recognised

by UGC


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To India

UK, USA, Canada, Middle East, South East Asia Medical

Tourists


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Thank You

Economics of Medical Tourism

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