The Rise of Globally Local Patient

Medical Tourism is estimated to grow at the rate of 25 to 30 per cent annually

Dr Sanjiv Malik

Medical travel (MT) is the practice of traveling to other countries to receive discounted medical procedure, sometimes packaged with travel and sightseeing excursions. The concept of medical travel is as old as the hills. The Neothic and Bronze age saw visits to mineral and hot springs, the Middle ages saw visits to Thermal springs, the 17th and 18th centuries saw the concepts of spas, the 19th century saw the evolution of sea and mountain air (TB Sanatoriums) retreats. In the 20th Century, health farms or fat farms came into being.

Advantage India

In 2006, India treated around 1,50,000 MT patients. This segment is estimated to grow at the rate of 25 to 30 per cent annually. MT could account for three to five per cent of the total healthcare delivery market. So, let us examine, why India is emerging as a medical tourism hub.

Cost Savings & Shorter Waiting Periods

The US healthcare faces the challenge of having over 47 million uninsured Americans and a large number of underinsured individuals. Rising healthcare insurance costs for the employees, a sharp rise in healthcare delivery costs which is growing at a rate higher than overall inflation, a shortage of new physician and nurses entering the system along with the increasing size of the ageing population are some of the continuing challenges. The cost of health insurance in the US rose between 8.2 and 13.9 per cent per year from 2000 - 2005. Meanwhile, wages have been flat. The median household income rose by 1.1 per cent from 2004 to 2005, after adjusting for inflation. The US spends more than twice as much on healthcare, on average, as the 21 countries in which life expectancy exceeds that of the US.

The UK and Canada have their own healthcare challenges like a crumbling public healthcare infrastructure which is unable to cope with the number of patients, shortage of care providers - nurses/doctors etc and a far too expensive private healthcare service. Increasing life expectancy and an ageing population are common problems.

Quality Care

There is a growth in healthcare facilities in India which provide better or similar quality care to patients at much lower costs. These healthcare facilities are JCI or NABH accredited to give the reassurance of quality to international patients.

Also in India, the physicians and staff in the hospitals are far more accessible than their US counterpart.

Newer treatments

Certain procedures like hip resurfacing which are still not approved by the FDA in the US brings lots of forward-thinking international patients to India. Besides, the above treatment of chronic diseases by alternative systems of medicine like Ayurveda lures many international patients to India

Concerns of Global Healthcare

• The comfort of having a major surgery near home with family at the bedside is a far cry from the experience in the developing world, where culture shock alone can be stressful.
• Language and cultural barriers can make communication with doctors and nurses frustrating.
• Does lower cost equal lower quality?

The answer to above is that competency, care and conduct form the bedrock of standards that must be in place to ensure quality care and patient safety in every healthcare establishment seeking international clientele.

The Indian Government's stand on MT

nIndia's National Health policy states "to capitalise on the comparative cost advantage enjoyed by domestic health facilities in the secondary and tertiary sector, the supply of services to patients of foreign origin on payment".

• The National Accreditation Board for Hospitals and Healthcare Providers (NABH) has been set up by the health ministry under the aegis of Quality Council of India.
• Industry body CII's partnership with 29 hospitals across 16 states to work out a price band for specialty services.
• The healthcare industry is working closely with the tourism ministry to incorporate these packages under its 'Incredible India' campaign.

Future of MT in Asia

At Bumrungrad Hospital, just six years ago, 23 per cent patients were foreign, accounting for 19 per cent of patient revenue. Now, 42 per cent of their patients are foreign, accounting for 53 per cent of patient revenue. Business models supporting MT will evolve beyond the commission-based patient referral model, just as the commission-based travel agency model was made obsolete by the web. MT will lead to better quality standards, as providers are forced to compete globally. It will force them to rethink how to market and sell healthcare services as it is a clumsy system right now. Better platforms will be developed to facilitate patient flow and care management. It will expand beyond hospitals into spas, wellness and rehabilitation.

The writer is Regional Director, Max Healthcare
Email: smalik@maxhealthcare.com