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Medical Tourism

Medical Tourism

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06/19/2013

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The action items for private sector are:

1. Increased participation in building infrastructure: To achieve its full

potential, it is estimated that India needs an investment of Rs.100000 to

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140000 Crores by 2012. Since the government can afford only a third of the

amount, the private sector should play an active role to fill the gap.

2. Integrate Horizontally: Private hospitals should also plan to integrate

horizontally for providing end-to-end healthcare solutions to consumers. For

example Apollo multi specialty hospitals is already planning to set up spas

and alternative mediclinics to attract more foreign tourists.

3. Joint Ventures / Alliances: To counter increasing competition, Indian

hospitals should tie-up with foreign institutions for assured supply of

medical

tourists. Specifically tie-ups with capacity constrained hospitals and

insurance

providers will provide significant competitive advantage.

5.4 Value Innovation Through MEDICITIES

Another successful example of the software industry is the establishment of

Export Oriented Software Technology Parks. This model can be successfully

replicated in the medical tourism industry by means of MEDICITIES. Each

MEDICITY could be a self-sustained healthcare hub with super specialty

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hospitals of international standards, ancillary facilities, research institutions,

health resort, rehabilitation centers and residential apartments. This model

can

be floated through a public-private partnership. The government will provide

land

and ancillary services and the private players will provide infrastructure and

services. From the consumer’s point of view, the MEDICITIES will offer

superior

value at affordable prices. From industry’s point of view, this will offer

significant

competitive advantage for India.

37

The cartoon strip adds sarcasm to the upcoming

medical tourism in India.

38

CHAPTER 3

OBJECTIVE

•To study the feasibility of Medical Tourism in Delhi and NCR.

SUB OBJECTIVE

•To compare the performance of four hospitals in the region in

selected operations on the basis of following

i.Cost

ii.Value added services

iii.Popular operations

iv.Promotional activities

v. Approachability

• To Analyze trends Indian medical and healthcare Industry.

39

RESERCH METHDOLOGY

RESERCH DESIGN

The research will be qualitative in nature as a lot of data is required to back
the conclusion of the report.

DATA COLLECTION SOURCES-

This study proposes to collect data from

the Primary as well as the Secondary Sources.

PRIMARY DATA

Data collection tools like questionnaires have been used and also personal
interview with the executives and surgeons of hospital like
Apollo,Fortis,Escorts,Max Hospital were conducted to get detailed
information. Interaction with foreign tourist also helped in quantifying
various services provided by the Hospitals and the Indian Tourism Board.

SECONDARY DATA

Various sources like internet, Medical Journals, Magazines, Newspapers
have been used to collect Secondary data.

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SAMPLE SIZE

The sample size taken for the study is four hospitals which have been
chosen selectively namely

FORTIS

APOLLO

MAX HEALTHCARE

ESCORTS

LIMITATIONS OF THE STUDY

The study was restricted due to the following points

•Denial to disclosure of exact statistical data by the concerned

authorities.

•Also one of the most renowned hospital in India AIIMS denied to

disclose any figures about medical tourism .

•Overall selection of 4 – 6 operations restricted the study.

•Locating less number of foreigner medical tourist around.

• Foreign tourist not in a state to interact as they come to India for

major operations.

•Lack of availability of empirical data on internet and medical

journals.

41

PARAMETERS AND CRITERIA FOR THE VIABILITY OF THE
PROJECT

The above mentioned hospitals were evaluated on the basis of following
operations and surgeries namely

•HEART SURGERY(Intervention cardiology

•KIDNEY TRANSPLANT

•LIVER TRANSPLANT

•ORTHOPEDIC SURGERY(Knee replacement)

•PLASTIES

•NEURO SURGERY

OTHER FACTORS

•Cost and value added offerings.

•After care amenities.

•Promotional activities done by the hospitals.

•Packages offered by hospitals

•Foreigners visiting there hospital.

CHAPTER 4

MARKET VIABILITY OF INDIAN HEALTHCARE INDUSTRY

42

The Indian consumers can be assessed or segmented as per the following
parameters..

Market Segmentation

A market is composed of different users having different responses to
market offerings. This makes it essential that hospital organizations,
especially for making a microscopic study of users’ needs and requirement,
make possible grouping of markets. The marketing strategy formulated on
the basis for segmenting the market is income. To some extent regional
considerations may also be adopted as a base for segmenting the market. The
below is the segmentation on the basis of regional consideration:

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Regional Segmentation

Urban Users

Rural Users

Educated
Illiterate
Poor
Rich

Educated
Illiterate
Poor
Rich

The aforesaid segmentation makes it clear that doctors would find a
variation in the living habits of both the segments.

Another important base for segmenting hospital services may be income
group. This helps hospital organisations in identifying the status of the users
of services. It is essential as the marketing principles recommend different
pricing strategies on the basis of level of income.

This would help hospital organisations in charging more from high and
middle income groups, charging equal to cost from the low income group
and making available free services to the no – income group. Another
important advantage of this segmentation is concerned with implementation
of modernization and expansion plan for the hospitals.

THE MARKETING MIX OF INDIAN MEDICAL TOURISM

•PRODUCT-

Some of the exclusive medical packages offered by the Indian
medical tourism are in the folowing treatments
MEDICAL PACKAGES

•HEART PACKAGES

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Segment

High -Income

Middle- Income

Low - Income

No- Income

CARDIAC SURGERY AND CARDIOLOGY
ANGIOPLASTY
ANGIOGRAPHY
CARDIOLOGY ROBOTIC SURGERY
OPEN HEART SURGERY
PAEDIATRIC INTERVENTION

•ORTHOPAEDIC SURGERIES

JOINT KNEE REPLACEMENT(UNILATERAL AND BILATERAL

NEURO SURGERY

PARKINSONS
EPILEPSY
ESSENTIAL TREMORS
MALIGNANT TUMORS

CARDIOLOGY

ECG
DOPPLER TEST
TEE
BEATING HEART SURGERY
VALVE SURGERY
STENTING
PERIPHERAL VASCULAR SURGERY
CONGENITIAL HEART DISEASE

•NEPHROLOGY

DIALYSIS
HAEMODIALYSIS
SLOW CONTINOUS ULTRAFICATION

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PLASMAPHERISIS

DENTAL CARE PACKAGES

UROLOGY

COSMETIC TREATMENT ETC

PRICE

The price range offered by the Indian medical industry are
unbelievable because india offers the most reasonable prices..
India is not only cheaper but the waiting time is almost nil. This is due to
the outburst of the private sector which comprises of hospitals and clinics
with the latest technology and best practitioners.

Procedure Charges in India & USA –

Procedure

United
States (USD)
Approx

India (USD)
Approx

Bone Marrow
Transplant

USD
2,50,000

USD 69,200

Liver Transplant USD

3,00,000

USD 69,350

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Heart Surgery USD 30,000 USD 8,700

Orthopedic
Surgery

USD 20,000 USD 6,300

Cataract Surgery USD 2,000 USD 1,350

Smile Designing USD 8,000 USD 1,100

Metal Free
Bridge

USD 5,500 USD 600

Dental Implants USD 3,500 USD 900

Porcelain Metal
Bridge

USD 3,000 USD 600

Porcelain Metal
Crown

USD 1,000 USD 100

Tooth
Impactions

USD 2,000 USD 125

Root Canal
Treatment

USD 1,000 USD 110

Tooth Whitening USD 800 USD 125

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Tooth Colored
Composite

USD 500 USD 30

Fillings / Tooth
Cleaning

USD 300 USD 90

INDIA

V/S

UK

Significant cost differences exist between U.K. and India when it comes to
medical treatment. Accompanied with the cost are waiting times which exist
in U.K. for patients which range from 3 months to over months.

Procedure

United
Kingdom
(USD)
Approx

India (USD)
Approx

Open Heart
Surgery

USD 18,000 USD 4,800

Cranio-Facial
surgery and skull
base

USD 13,000 USD 4,500

Neuro- surgery
with Hypothermia USD 21,000 USD 6,800
Complex spine
surgery with
implants

USD 13,000 USD 4,600

Simple Spine
Surgery

USD 6,500

USD 2,300

48

Simple Brain
Tumor -Biopsy
-Surgery

USD 4,300
USD 10,000 USD1,200
USD 4,600

Parkinsons
- Lesion
- DBS

USD 6,500
USD 26,000 USD 2,300
USD 17,800
Hip Replacement USD 13,000 USD 4,500

•PLACE

All the hi tech hospitals like Apollo, escorts, max hospitals are located in all
the metro cities of the country and they are targeting the tier 2 cities due to
the extreme market potential. Indian healthcare industry is the second in the
country as its growing by leaps and bounds so the Indian hospital industry is
getting organized.

•PROMOTION

First and foremost it suggests that medical expertise in India
is at par with the developed world although the infrastructure to support it is
sadly lacking. This is the fact experienced by almost all Indian doctors who
come to seek work in the Western World.
PROMOTIONAL ACTIVITIES TO PROMOTE MEDICAL TOURISM

•CME ( Continuous medical education for doctors)

•Patient Education Progress

•Free health Checkup camps.

49

•Tie ups with various hospitals and insurance companies abroad.

•Participation in Health Expo’s abroad.

•Tie ups Embassies.

•AD campaigns.

•Nodal centers in other countries.

•Reduction of Excise duty from 17% to 8% on all goods produced in

the pharmaceutical sector as per the Budget 2008-2009.

DEMAND FORECAST-

Increasing globalization with reduction of travel times combined with added
tourist attractions puts India in a good position to promote Health Tourism.
India’s population crossed one billion in 1999 and is projected to exceed 1.5
billion in 2050. The infant mortality rate though having decreased from 225-
250 in the 1940’s to 72 in 1997, is still high. Mortality from Tuberculosis
and Acquired Immune Defeciency Syndrome are major problems.(3) There
is always the chance of the poor being exploited by unscrupulous element’s
for purposes such as organ transplantation though trade in organs is illegal in
India.(4)

The CII-McKinsey report suggests
that medical tourism could fetch as much as $2 billion by 2012, compared to
an estimated $333 million currently.
Reference:
.Mudur G. Hospitals in India woo foreign patients. BMJ 2004; 328:1338.

50

HEALTHCARE INFRASTRUCTURE

•India needs at least 750,000 extra beds to meet the demand for

inpatient treatment by 2012- opportunity in tertiary healthcare
facilities.

•India needs at least 1 million more qualified nurses and 500,000 more

doctors by 2012 as compared to existing number.- opportunity in
medical education.

•To raise this infrastructure, total additional investment to the tune of

US$ 25-30 billion is needed by 2012.

•Government and international agencies will only be able to gear up

US$ 7 billion and the rest of investment has to come from private
sector.

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