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Curing the World:

An Opportunity for
Medical Tourism in India

White Paper Series

on
Tourism Industry

Team D’Essence
Definition of Medical Tourism

Tourism combined with a visit for Medical Treatment is called as Medical Tourism. Medical
Tourism is also known as Healthcare Tourism.

Why Medical Tourism?

Medical tourism is becoming a popular option for various people across the globe. This has led to
a rapid growth in the industry. Healthcare and Tourism industries are among the largest industries
in the world. Medical Tourism is being promoted as a Fusion product of these industries. Various
countries like Thailand, Malaysia, India, etc are promoting Medical Tourism aggressively.

Following are various reasons why people opt for another location for medical treatment.
• Lack of Expertise
• Cost Effectiveness
• Availability
• Care support – Family, etc

Several developing countries like Bangladesh, Pakistan do not have necessary expertise for
medical treatment in certain areas. Medical treatment at popular destinations is cheaper
compared to many developed countries. Patients get similar kind of treatment at cheaper costs.
In countries like U.K., people have to wait for a long time to be treated under various schemes
like NHS. Also, patients can not afford or get good support services for care during the treatment
because of various reasons. Hence, opting for places like India, Thailand, etc becomes a better
option for patients for medical treatment.

Why India?

India has several advantages that make it a natural choice for Medical treatment. Following are
some of them

• Large pool of good doctors, nurses and paramedics

• World-class facilities
• Cost advantage during treatment as well as medication
• High brand value of leading Indian medical professionals across the globe
• Good English speaking population
• Vibrant Pharmaceutical industry

India has a huge resource for tourism that can convert it in to one of the top destinations for
tourism. Some of them are

• Cultural and religious diversity

• Centuries old vibrant civilization
• Number of attractions ranging from wildlife to cultural heritage

Based on above mentioned factors, India can easily become an attractive destination for medical
tourism if the industry is developed properly. As per IBEF, Indian Medical Tourism market is worth
US$ 333 millions. Mckinsey-CII estimates that the market size will increase up to US$ 2 billions
by 2012.

The cost difference would be a huge factor in making India as a popular destination. Following
table shows costs for various medical treatments in different countries.

Medical Treatment Budgets (In US$)

US/UK India Thailand
Bone Marrow Transplant 250,000 30,000 62,500
Liver Transplant 300,000 40,000 75,000
Open Heart Surgery 150,000 7,000 14,250
Hip Replacement 17,000 4,500 6,900
Knee Surgery 16-24000 4,500 7,000
Cataract 2,000 500 NA
Data from Various sources

The cost details provided in the table above do illustrate the advantage of India. However, it is
very difficult to get exact cost details because the industry data is not easily available.

Following table shows the important data about Medical tourism

 Global Medical Tourism
No. of Money
Country Foreigners From Earned Strength
Treated (US$ mn)
Cosmetic Surgery, Organ
Transplant, Dental
Thailand 600000 US,UK 470
Treatment, Joint
Replacements
Organ Transplant, Fertility
Jordan 126000 Middle East 600
Treatment, Cardiac Care
Middle east,
Bangladesh, UK, Cardiac care, Joint
India 100000 NA
developing Replacements, Lasik
countries
US, Japan,
Malaysia 85000 Developing 40 Cosmetic Surgery
Countries
South Cosmetic Surgery, Lasik,
50000 US, UK NA
Africa Dental Treatment

Possible Services Areas

Medical Tourism industry in India is evolving though it existed here for Centuries. Indian
advantage is slowly getting reflected in getting steady number of visits from medical treatment
from countries like Bangladesh, Pakistan and Middle East. NRIs have become another major
source. However, there is tremendous scope for making the industry of significant size.

There are various kinds of services that can be provided under medical tourism

• Service Delivery – Medical services

• Travel Services (Airlines & Hotels)
• Shopping & Entertainment for tourists and its family members
• Insurance Coverage towards the risks involved during the treatment
• Policy/ Rights/Compensation in case of accidents during the treatment
• Websites providing information, booking facilities and promotions
Key issues in Medical Tourism

Following diagram shows some of the common problems faced by the Industry. These problems
should be addressed for sustainable development in the Medical Tourism industry.

Industry Specific Issues

• Doctors
o Strong regulatory Framework to curb quacks
o No communication and inter-personal teaching
• Nurses and Paramedical
o Lack of initiatives and thinking capacity
o Deficient language skills
o Lack of standardization
• Service
o Hygiene awareness in medical attendants
o Unhygienic food handling
o Lack of hospitality services
o Heterogeneous pricing of services
o No industry standards
• Infrastructure
o Lack of connectivity
o Highly unorganized
o Lack of coordinating system
o Poor power supply
o Poor water supply
• Insurance
o Inadequate insurance cover
o Underdeveloped market
o Insurance Frauds
o Overseas companies refusing reimbursement
• Quality Accreditations
• Training and Development
o Poor infrastructure
o Lack of customer oriented approach
Policy specific Issues

• Government
o No regulations
o Taxation anomalies
o Bureaucratic roadblocks
o Land Reforms
o Lack of long-term investor friendly policies
• Instability with respect to terrorism and communal tensions

Tourism Industry Specific Factors

• Poor accessibility
• Lack of Capital
• Lack of Community participation and awareness
• Lack of involvement from rural sector
• Lack of concern for sustainability
• Complex Visa procedures
• Lack of good language translators
• Poor airport facilities
• Subsidiary Accommodation for Medical Tourists and its family before, during and after the
treatment

Major Players

Following are major players in the Medical Tourism industry.

• Escorts
• Apollo Hospital
• Indraprastha Apollo Hospital
• Hinduja Hospital
• Jaslok Hospital
Apart from this, several players are planning to enter the industry. These include large as well as
small players.

Following table shows the details about major players

Major Players in Indian Medical Tourism Industry

% Revenues
Turnover
No. Of from
(Rs. Major International Markets
Beds International
Millions)
patients
SAARC, CIS, East African
Escorts 326 2180 11.9
Countries, Afghanistan
Apollo 1500 2010 15 Middle East
Indraprastha- Nepal, Bangladesh, Sri
650 1650 7.3
Apollo Lanka, Gulf & Africa
Hinduja 351 1350 3 African & SAARC Countries
US, Japan, Middle East and
Jaslok 376 1080 10
African Countries
Source: Business Today

This shows that, significant source of revenues for such hospitals comes from international
patients. The industry is growing rapidly. Government along with other players is making moves
towards making this an important industry. The process of standardization has already started.
However, Government needs to make moves faster so that the opportunity is not tapped by other
industries similar to Tourism.

India has great resources for tourism. World-class medical facilities are already available at many
places. Hence, these two industries can definitely move together that provides a bright future for
the Medical Tourism Industry. The Medical tourism opportunity is so good that it can not be
ignored.
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© D’Essence Consulting 2004

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