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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
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
tourists. Specifically tie-ups with capacity constrained hospitals and
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
hospitals of international standards, ancillary facilities, research institutions,
health resort, rehabilitation centers and residential apartments. This model
be floated through a public-private partnership. The government will provide
and ancillary services and the private players will provide infrastructure and
services. From the consumer’s point of view, the MEDICITIES will offer
value at affordable prices. From industry’s point of view, this will offer
competitive advantage for India.
The cartoon strip adds sarcasm to the upcoming
medical tourism in India.
•To study the feasibility of Medical Tourism in Delhi and NCR.
•To compare the performance of four hospitals in the region in
selected operations on the basis of following
ii.Value added services
• To Analyze trends Indian medical and healthcare Industry.
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.
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.
Various sources like internet, Medical Journals, Magazines, Newspapers
have been used to collect Secondary data.
The sample size taken for the study is four hospitals which have been
chosen selectively namely
LIMITATIONS OF THE STUDY
The study was restricted due to the following points
•Denial to disclosure of exact statistical data by the concerned
•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
•Lack of availability of empirical data on internet and medical
PARAMETERS AND CRITERIA FOR THE VIABILITY OF THE
The above mentioned hospitals were evaluated on the basis of following
operations and surgeries namely
•HEART SURGERY(Intervention cardiology
•ORTHOPEDIC SURGERY(Knee replacement)
•Cost and value added offerings.
•After care amenities.
•Promotional activities done by the hospitals.
•Packages offered by hospitals
•Foreigners visiting there hospital.
MARKET VIABILITY OF INDIAN HEALTHCARE INDUSTRY
The Indian consumers can be assessed or segmented as per the following
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:
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
Some of the exclusive medical packages offered by the Indian
medical tourism are in the folowing treatments
Low - Income
CARDIAC SURGERY AND CARDIOLOGY
CARDIOLOGY ROBOTIC SURGERY
OPEN HEART SURGERY
JOINT KNEE REPLACEMENT(UNILATERAL AND BILATERAL
BEATING HEART SURGERY
PERIPHERAL VASCULAR SURGERY
CONGENITIAL HEART DISEASE
SLOW CONTINOUS ULTRAFICATION
•DENTAL CARE PACKAGES
•COSMETIC TREATMENT ETC
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 –
Liver Transplant USD
Heart Surgery USD 30,000 USD 8,700
USD 20,000 USD 6,300
Cataract Surgery USD 2,000 USD 1,350
Smile Designing USD 8,000 USD 1,100
USD 5,500 USD 600
Dental Implants USD 3,500 USD 900
USD 3,000 USD 600
USD 1,000 USD 100
USD 2,000 USD 125
USD 1,000 USD 110
Tooth Whitening USD 800 USD 125
USD 500 USD 30
Fillings / Tooth
USD 300 USD 90
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.
USD 18,000 USD 4,800
surgery and skull
USD 13,000 USD 4,500
with Hypothermia USD 21,000 USD 6,800
USD 13,000 USD 4,600
USD 10,000 USD1,200
USD 26,000 USD 2,300
Hip Replacement USD 13,000 USD 4,500
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
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.
•Tie ups with various hospitals and insurance companies abroad.
•Participation in Health Expo’s abroad.
•Tie ups Embassies.
•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.
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
The CII-McKinsey report suggests
that medical tourism could fetch as much as $2 billion by 2012, compared to
an estimated $333 million currently.
.Mudur G. Hospitals in India woo foreign patients. BMJ 2004; 328:1338.
•India needs at least 750,000 extra beds to meet the demand for
inpatient treatment by 2012- opportunity in tertiary healthcare
•India needs at least 1 million more qualified nurses and 500,000 more
doctors by 2012 as compared to existing number.- opportunity in
•To raise this infrastructure, total additional investment to the tune of
US$ 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
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