The Rise of Domestic Medical Tourism and Effective Panel

Use for Tourism Research

Rudly Raphael – President, qSample Dr. Christine Oschell – University of Montana

Dr. Simon Hudson – University of South Carolina

The Rise of Domestic Medical Tourism and Effective Panel Use for Tourism Research

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The Role of Research Panels in Montana Tourism Research

Christine Oschell, PhD Director of Survey Research Institute for Tourism and Recreation Research (ITRR) University of Montana

Background •  How does my institute work? •  Why a panel? •  Recruiting panel members. •  Benefits of a panel.

Case Study 1: Gas Prices and Travel: What will happen?

•  Panel survey of previous visitors to Montana and those interested in Montana

•  Survey administered March 19- 27, 2012 •  627 respondents •  http://surveyanalytics.com/s/

1-1442120-2964638

Any  Trip  

MT  Trip  

Would  spend  less  on  discre2onary  items  

85%   65%  

Do  less  costly  ac2vi2es   83%   64%  Would  eat  out  less   71%   54%  Stay  fewer  nights  in  hotel/motels   65%   45%  Change  mode  of  transporta2on  to  MT   55%   17%  Eliminate  trips?   34%   14%  

How might rising gas prices affect your upcoming pleasure trips?

Case Study 2: Flexibility in Montana Travel

•  Panel survey done in February 2013. •  Yielded 1,363 responses. •  Informed major decisions for the Montana

Office of Tourism. •  Ease of sharing results. http://surveyanalytics.com/s/1-1442120-3111942

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Domestic Medical Travel

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Agenda •  What is domestic medical travel? •  Who are the key players? •  Why the growth?

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What is domestic medical travel? •  “Domestic tourism for the primary purpose of

invasive, diagnostic, or lifestyle medical treatments.”

Who are the key players?

Medical Tourists  

Motivated By:  

Affordability  

Availability  

Opportunity to vacation  

Privacy and anonymity  

Advanced technology  

Better quality care  

Quicker access  

 

Medical Brokers  Travel Agents Online Agents    

   

   

Employers  

Insurance Companies  

Direct Channel  

Hotels  

And  

Resorts  

Medical    

Medical Facilities  

-Invasive  

-Diagnostic  

- Lifestyle  

Demand   Intermediaries   Supply  

Source Market Externalities  

Economy  

Health System  

Political System  

   

Destination Externalities  

Destination brand  

Political Stability  

Accreditation  

Accessibility  

Demand •  Influenced by:

– Affordability

– Availability

– Opportunity to vacation

– Privacy and anonymity

– Advanced technology

– Better quality care

– Quicker access 11  

Intermediaries

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Employers

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Boeing Co. has a similar arrangement for heart surgery at Cleveland Clinic for the company’s 83,000 nonunion employees, dependents and retirees.

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PepsiCo employees covered by its health insurance plan can travel to Johns Hopkins Medicine in Baltimore for heart surgery and joint replacements with no out-of-pocket costs.

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Lowe’s have a deal with Cleveland Clinic making its cardiac care available to employees.

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Supply

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•  After conducting medical tourism research in other countries, Galichia Heart Hospital decided to challenge itself to see if it could offer comparable prices on heart procedures and other services.

•  By cutting prices, the hospital found it was attracting an additional two medical tourism cases a week, or approximately 100 a year, which generates $1million in incremental revenue per year. 20  

•  Oklahoma is positioning itself as the medical tourism destination for oncology care in the U.S.

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Why the growth? •  1. Growth in health and wellness •  2. A reaction to outbound medical tourism •  3. More employers and insurers are offering financial

incentives to encourage workers to consider domestic medical

•  4. The aging population and the baby boomer cohort •  5. Consumer trends •  6. Destinations see the health sector as an opportunity •  7. A recognition of the economic impacts •  8. Technology (e.g. Fresenius Medical Care)

1. Growth in health & wellness

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2. A reaction to outbound medical tourism

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Competing on Customer Service

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3. Financial incentives •  In 2009, a supermarket chain in Maine, with

27,000 employees, offered to send its staff needing knee or hip replacements to Singapore. The medical costs would be so low that the company would pay the employee’s insurance co-payment of about $2,500 and the travel expenses for the employee and a spouse or companion.

•  The move attracted the attention of hospitals in Maine and Boston, who offered to match the Singapore prices. In the following two years, ten employees had the surgery, but all elected to stay in the U.S. 27  

4. Aging population: Wooing Zoomers

“Over the hill? I’m just beginning to enjoy the view!”

5. Consumer Trends

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Avg.=4 Avg.=2

Average number of vacation days left untaken:

Vacation deprivation

6. Destinations see the health sector as an opportunity

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7. A recognition of the economic impacts

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Questions?

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