ECONOMICS OF INDIAN MEDICAL TOURISM

Maj Gen (Dr) M Srivastava,VSM** Director ICRI Health

(Retd)

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

One of the hottest sectors in India

(Public Health Foundation of India)

A multibillion dollar industry India a International medical tourisms hub

Dental Surgery Joint Replacement Surgery

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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 Gulf called Epidauria, sanctuary of the healing god Asclepius

Yes. Marketing of Medical Value Tourism is relatively new concept.

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Economics of tourism
Tourism third largest net earner of foreign

exchange Indias share in International Tourist arrival 2002 - 0.34 percent 2005 - 0.49 percent total 3.92 million The World Travel Tourism Council - India as one of the foremost growth centre in the world in coming yrs. Travel & Tourism sector creates more jobs per million rupees of investment plan, than any other sector of the economy.
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Can we have similar Map for Medical Tourism for India ?

 India has world class corporate hospitals and

excellent treatment Centres in the world. Hospital infrastructure & technology on par with USA, UK & other European countries No waiting period Success rate India -- 98.7% -- US 97.5% Immediate attention / treatment / surgery Best Nursing Care with compassion Language no barrier English speaking staff

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

healthcare
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Growth of International Standard Hospitals

Apollo Hospital Hyderabad

Max Hospital Delhi

Fortis Hospital, Delhi

Jaslok Hospital, Mumbai

Breach Candy Hospital

Wokhardt Hospital Bangalore

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Macro Economics of Medical Tourism

Confederation of Indian Industry (C II) sponsored Mc Kinsey & Co. study.Healthcare in India : The Road Ahead report: 1.3 million medical tourists visit Asia / year

Nos. of US patients seeking cheaper care abroad - grew to 7,10,000 / year

Over 1, 50000 medical tourists travelled to India in 2002 bringing in earnings of $ 300 million. 2006-07 > 3,00000
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 The size of Indian Medical Tourism sector estimated in 2002 to be min 1,00000 to 1,50,000 foreign patients per year (Medical Tourists) .

The annual growth rate of Medical Tourism in India 2000 15% per year

2007 30% per year

Kerala - > 8000 patients annually. Cardiac, Ortho & Ayurveda treatment - KIMS (2007) 40,000 medical tourism patients

Hospital A in Bangalore - reported 900 medical tourists per year.

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Indias Tourist Industry could yield from $ 1.2

billion presently to $ 2.2 billion annually by 2012 .

The growth rate of Medical Tourism Industry @

12% in 2002 will go to @ 30% annually by 2012 .

Up market private care in India to be worth from

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

Medical Tourism revenue can potentially rise

from Rs. 5000 crores to Rs.10,000 crores per year.

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 $ 17 billion Indian Healthcare Industry contributes

about 4% -5% of GDP. It is expected to grow @ 13% annually in next 5 yrs.

Health care spending in India will increase from Rs.

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

Private Health care share will form the largest of this

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

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Anatomy of Medical Value Travel (Eonomic Potential)

Travel tourism

+ pleasure, physical & mental relaxation + value addition of medical treatment at lowest cost
Medical Tourism
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Advantage India
Unique medical value services to foreign patients that supersedes the competition :
Yoga Meditation /Spiritualism Ayurveda healing
India offers a unique basket of services to an individual that is difficult to match by other countries (CII) Less regulatory & legal problems
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Economic Crisis, Credit Crisis & Recession in USA - Will it affect Medical Tourism market in India ?

No There are almost 50 million Americans with no health insurance Canada - > 700000 patients waiting for procedures/surgery for > 6 months- 1yr It can have a very positive impact on tourism industry in India for hospital & allied healthcare industry who position themselves in the right direction .

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Planning Commission Report Govt will provide M Visa to Medical

Tourists

on priority. Most patients visit from SAARC + US &UK Lowest cost o Heart Bypass Surgery India Thailand Singapore US / UK $ 6000 $ 7894 $ 23,983 $19,700
o Heart Valve Replacement Surgery $ 8000 $ 10,000 $ 12500 US $ 20000 UK & 90,000
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Micro Economics - Comparative Cost Analysis Metal Free Dental Bridge India US $ 500 $ 5500 Bone Marrow Transplant India US $ 30,000 $ 250,000- $40,000 Cosmetic Surgery India Thailand $ 2000 $ 35,00 Spinal Fusion $ 5500 $ 7000 US $ 10,000 $ 62,000

UK $ 150,000 Singapore $ 9000

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Need of the hour : INDIA NEEDS PROACTIVE GLOBAL MEDICAL TOURISM MARKETING STRATEGIES

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Marketing strategies to maximize economic potential

Aggressive marketing & awareness programs globally Publish details of Indian Corporate Hospitals with core competencies eg Cardiac Surgery J R Surgery, IVF, Cosmetic Surgery, Dental Surgery
Advertise - rates of all procedures in all

International / International Magazines, journals, magazines & News Papers of the World Web sites List, details, Tele & E mail ID of Hospitals & Executives dealing with medical tourism
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 Medical Tourism Companies /Facilitators

address, ISDN, E mails

Establishment of Indian Medical Tourism

Corporation : - International Branches - Liaison cell with all Indian & Foreign Missions - Brochures giving details & pictures of - Indian Corporate Hospitals, specialties, Consultants detail, procedure rates ,
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 Special attractive treatment, travel & tourism packages at competitive rates Package medical tourism through Travel & Tourism Cos.
Health Insurance for treatment in India Regular Chartered Medical Tourism International Inbound Flights with all peripheral arrangements in-flight medical care - Car/ ambulance transfer - Hotel Hospital / Hotel Wellness tourism-Return to home country follow up
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Word of mouth business to change to media driven business -on line directory for medical tourism
Need for India International MT Media Marketing international hospital cannot succeed without Internet Branding IMT must Transparency & no intra hospital competition proper patient 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 Consortium with front offices in UK, USA, Canada, Middle East, South East Asian countries Medical Tourism Facility Managers - in Europe, Middle East, South East Asia - for networking with foreign hospitals & Consultants for patient reference on profit sharing per patient basis. Form Medical Tourism Association (India)- for laying down MT business ethics, rates, wellness tourism policies, procedures etc. Medical Tourism Regulatory Body /Ethics Committee Special Insurance Packages 26

Collect Data base of Uninsured patients USA,

UK, Canada & other countries patient segmentation Collect Data base of patients waiting in Canada, UK, USA other European & third world countries Motivate Indian/International Insurance Cos for providing low cost Procedure Covers for overseas patients. Approach Govt Tax benefits for Medical Tourism sector
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Training Needs -for exponential economic growth & sustainable Indian Medical Tourism
Institutional Training University courses Structured courses tailor made syllabus Training in Tourism Marketing Tourism Dept, Travelling industry, Hospitality & Hotel Industry Training modules in soft skills MT staff Modular Short Training Courses for Specialists/ Hospital Executives in Customer Care Management - International Patients Training 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 option to specialize in final year either in Hospital Operations Management (HOM) or Medical Tourism (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

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