ECONOMICS OF INDIAN MEDICAL TOURISM

1. ECONOMICS OF INDIAN MEDICAL TOURISM Maj Gen (Dr) M Srivastava,VSM** (Retd) Director ICRI Health

2. Medical Tourism 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

3. 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.

4. Economics of tourism Tourism third largest net earner of foreign exchange India’s 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.

5. Can we have similar Map for Medical Tourism for India ?

6. 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

7. Growth of International Standard Hospitals Max Hospital Delhi Fortis Hospital, Delhi Apollo Hospital Hyderabad Jaslok Hospital, Mumbai Wokhardt Hospital Bangalore Breach Candy Hospital

8. Macro Economics of Medical Tourism

9. 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

10. 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.

11. “India’s 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.

12. $ 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.

13. Travel tourism + pleasure, physical & mental relaxation + value addition of medical treatment at lowest cost Medical Tourism Anatomy of Medical Value Travel – (Eonomic Potential)

14. 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

15. 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 .

18. Planning Commission Report - Govt will provide ‘M’ Visa to Medical Tourists on priority. Most patients visit from SAARC + US &UK Lowest cost - Heart Bypass Surgery - IndiaThailand Singapore US / UK $ 6000 $ 7894 $ 23,983 $19,700 Heart Valve Replacement Surgery $ 8000 $ 10,000 $ 12500 US $ 20000 UK & 90,000

19. Micro Economics - Comparative Cost Analysis Metal Free Dental Bridge India – US $ 500 $ 5500 Bone Marrow Transplant India USUK $ 30,000$ 250,000- $40,000 $ 150,000 Cosmetic Surgery India Thailand US Singapore $ 2000$ 35,00 $ 10,000- Spinal Fusion $ 5500 $ 7000 $ 62,000$ 9000

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

21. 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

22. Medical Tourism Companies /Facilitator’s 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, Consultant’s detail, procedure rates ,

23. 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 • Special attractive treatment, travel & tourism packages at competitive rates

24. 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

25. 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

27. 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

28. DELHI MUMBAI AHMEDABAD BANGALORE HYDERABAD 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

29. To India UK, USA, Canada, Middle East, South East Asia Medical Tourists

30. Thank You