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Healthcare tourism opportunities for India

Seminar Paper 2013 26 Pages

Health - Miscellaneous

Excerpt

Table of Contents

Section-1: Background Context and Aims & Objectives
1.1. Background Context
1.2. Motivation
1.3. Aim & Objectives
1.4. Methods

Section-2: Literature Review
2.1. World’s Healthcare Tourism Market
2.2. Demand Drivers
2.3. Medical Malpractices Insurance
2.4. Major Countries in Healthcare Tourism
2.5. Healthcare Tourism in India
2.6. Initiative in India with respect to Healthcare Tourism
2.6.1. Industry Initiatives
2.6.2. Government Initiatives

Section-3: Case Studies
3.1. Case Study on Escorts Heart Institute & Research Centre (EHIRC)
3.2. Case Study on Frontier Lifeline
3.3. Case Study on Kerala Institute of Medical Sciences (KIMS)
3.4. Case Study on Manipal Health Systems
3.5. Mediciti Healthcare Services
3.6. Findings

Section-3: Discussion, Conclusion & Recommendations
4.1. Discussion
4.1.1. Opportunities
4.1.2. Challenges
4.1.3. Strategies
4.2. Conclusion
4.3. Recommendations

Section-5: References

Executive Summary

This report is written on the topic of ‘Healthcare Tourism Opportunities for India’. The scope of this report is broad as it incorporates the case studies of five major players in Indian healthcare tourism sector. It has been observed that Healthcare Tourism and Medical Tourism are interchangeable terms. In general, there are two main causes (developed countries’ increasing cost of healthcare services and their overburdened healthcare infrastructure) that have resulted in enhancing the demand for healthcare tourism. Medical Malpractices Insurance is the major for increasing the healthcare cost in developed countries. Commonly, medical malpractice insurance is considered as major aspect for increasing the cost of medical treatment, widening the delay in the waitlist and also enhancing the movement of medical professionals from one region to another. India has competitive edge in the healthcare tourism because of certain characteristics: healthcare professional availability, low-cost medical treatment, enhancing popularity of its traditional wellness systems and country’s existing reputation for treat of relatively advance healthcare segments (such as organ transplant, cardio-vascular surgery and eye surgery/ By reviewing all the case studies, it has been analysed that there are certain general practices that are being pursued by major healthcare service providers in India. It includes updation and utilisation of advanced technology & medical facilities, consistent healthcare education, research in medical sciences and the approach of skill development. It has been discovered that there are certain opportunities (Increasing cost of healthcare in developed countries, language proficiency of Indians, Indian healthcare institutions’ success rate, delay in waiting time, Indian healthcare institutions’ success rate and spillover effects) that could be exploited by the Indian medical institutions that are intended on providing medical services to foreign medical tourists. However, it has been determined that Indian medical tourism sector has been some of the challenges (Indian government’s low spending on Healthcare sector, lack of International Accreditation, transplantation law, shortage of hotel accommodation and inadequate malpractices law) that could have negative impact on the growth rate of this sector. It has been recommended that the strategies currently adopted by major players of Indian medical tourism sector have helped its country to emerge as favourite healthcare destination for foreign medical tourists.

Section-1: Background Context and Aims & Objectives

1.1. Background Context

From the economics perspective, more often the countries’ wealth estimates through the form of health services provided to their citizen. It has been observed that almost all countries are in the pursuit of providing sustainable healthcare solutions to its population. Corresponding, improvements in the healthcare sector is perceived as more than the availability of hospitals, doctors and medicines (James, 1989). However, improvement in the healthcare happens as a result of promotion of healthcare consciousness which is normally done through various marketing activities that would be suitable for multiple sections (elders, youth and children) of given society. From this point of view, traditional healthcare systems of India (specifically Yoga and Ayurveda) are regarded as a conception of spiritual healings that are very famous and effective among national and international tourists (George & Swamy, 2012).

Generally, a person is called as healthcare tourist if he/she travels from one country to another for undergoing medical treatment (Jagyasi, 2011). While, this definition of healthcare tourist has neglected certain persons who used to travel to another country for exploring, enjoying and rejuvenating1 their minds and body without undertaking any sort of medical treatment. Specifically, the flow of tourists is far more in an absolute term along with the profits generated through this aspect if one country would strongly consider this aspect. It has been determined that there are many tourist attractions located in India that have healing abilities and are relatedly capable of offering life rewarding experiences. Himalayan mountain ranges are in the northern part hence the country’s southern region (long coastline) is surrounded by sea. Additionally, country has many historical sites, landscapes, royal cities, serene mountain retreats and clean beaches. India also have different cultures which meant that festivals are used to be held throughout all the year. And in this way people from other countries would enjoy and rejuvenate themselves (REDDY, 2013).

Main aim of this research report is to review global medical tourism industry and to analyse the demand for Indian medical care institution from the perspective of medical tourists. Relatedly, it significant to signify medical tourism solutions exist in India. It will importantly take account of exclusiveness of Indian healthcare institutions concentrating on providing medical care solutions to their medical tourists located in foreign countries.

Moreover, it has been contended that Healthcare Tourism and Medical Tourism are interchangeable terms. The concept called as medical tourism is basically from the practice where people belong to developed countries are traveling to the developing countries for the purpose of receiving long range of medical services significantly because of increasing cost of medical services available in their native countries (Stolley & Watson, 2012). Relatedly, complicated treatment procedures are also determined as associated reason. In short, medical tourism is referred as cost effective provision for purpose of providing private medical services in combination with the tourism sector prominently for patients requiring surgical and associated treatment. However, healthcare tourism is described in a broader prospect where the patients are desiring to travel aboard with the motive of overall wellness with any elective or urgent medical procedures (Connell, 2011).

Basically, there are two major forms of healthcare solutions (traditional and modern systems of medicine). It has been learnt that the traditional systems originated from long period of time in almost all countries this happened as an outcome of competitive environment which had gone through variation in term of providing healing solutions (Mal, 2010). However, some of them are scientific based and others are realised to be based on providing healing solutions (spiritual or faith healing). And it has been found out that such form of healing solutions are existing in some countries (India, Nepal, Malaysia and Philippines). Correspondingly, it has been discovered that such kind of travel segment is regarded as fastest growing segments especially in the global tourism industry (Mudur, 2004).

It has been believed that healthcare tourism has many distinctive characteristics. The most vital feature is that it is not an impulsive activity (Woodward et al., 2001). And it used to be offered in the form of attractive features that would be enough for targeting foreign medical tourists. Second attribute is that it is not directly related with the aspect of willingness to spend and this feature thus incorporate certain tourists who are not willing to spend but their health conditions intend them to travel & spend (Gautam, 2008). Third feature is that healthcare tourism is not a seasonal sector, this has been supported with a fact that the duration of stay under the provision of healthcare tourism is considerably longer than holiday or conventional corporate travel (Langenbrunner et al., 2011). Last characteristic is that it is not a onetime business which has been proved with an aspect that successful medical treatment is directly linked with satisfactory services that in turn increase the chances of getting repeat business.

1.2. Motivation

The motivation behind choosing this topic is my interest and existing knowledge about the healthcare tourism sector. As I’m from India and my country is emerging as only big player in the given field. This aspect of medical care tourism not only intended to increase the profits of these service providers but also have generated a lot of working opportunity. And all in all, these all things are making positive impact on our country’s GDP and also has enhance the level of healthcare services provided at local level as well. So, the reason behind outlining all of these facts is that I would want to get employed in the given sector and then would run my own medical tourism institution.

1.3. Aim & Objectives

The core objective of this report is to signify certain opportunities and challenges for the Health Service Providers in India from the global perspective. Additionally, other related objectives have been listed below:

To examine the tourism scenario in World and Indian healthcare market.

To analyse the demand for healthcare tourism in the World.

To identify the healthcare & tourism solutions existing in India in order to cater the demand for Healthcare Tourism.

To consider the exclusiveness of India in regard to the different segments within the tourism & healthcare solutions.

1.4. Methods

This theory into practice report will be based on secondary research method. And the case study approach will be adopted in order to create between literature review and case study sections. In this manner, it would enable to accomplish certain objectives that have been listed above.

Section-2: Literature Review

2.1. World’s Healthcare Tourism Market

The revenue generated by world’s healthcare tourism market is more than $40 billion.

And this market is growing at a rate of 20%. In 2007, the size of the market was around $150 billion and it has been predicted to be double by the end of 2015 (Gautam, 2008). From broader perspective, there are massive opportunities incorporated in this market.

2.2. Demand Drivers

In general, there are two main causes (developed countries’ increasing cost of healthcare services and their overburdened healthcare infrastructure) that have resulted in enhancing the demand for healthcare tourism (Hall, 2013). On other hand, improvement in developing countries healthcare systems & technologies are the contributing factor for the growth of healthcare tourism. It has been observed the ratio of individual without insurance (specifically below the age of 65) has incremented from 29.8 million in 1984 to approximately 41.6 million in 2004 (Shah, 2006). And out of these uninsured persons more than 50% belongs to the Asian races. Therefore, shortcoming of vibrant procedures for defining & managing waitlists is the prominent factor that have negative impact on the length of waitlists. Correspondingly, insufficient specialists’ supplies, operating rooms, surgeons, technology and para-medical staff are also determined as main reasons that intended foreign patients to come to developing countries and acquire services of equivalent but at relatively lower cost (Sarkar, 2009).

2.3. Medical Malpractices Insurance

Medical Malpractices Insurance is the major for increasing the healthcare cost in developed countries. This insurance normally covers the liability claims of doctors & other professional in the specified field and it generally occurs from their patients’ treatment. Relatedly, it also occurs during the time when a physician unable to treat in a proper manner. Commonly, medical malpractice insurance is considered as major aspect for increasing the cost of medical treatment, widening the delay in the waitlist and also enhancing the movement of medical professionals from one region to another (MIRRER-SINGER, 2007). Hence it has been seen that the increment in the cost of medical treatment also directs towards unaffordable premium in relation to insurance by individuals and thus put large amount of people out from the bracket of health insurance coverage (Vick, 2012).

Additionally, it has been believed that the second major cause of increasing of medical treatment cost is the sudden increase of premium expense which used to be pursued through medical malpractice insurance. It has been observed that the insurance have begun to increase the premium for medical malpractice insurance the with the increase in the volume of claims (Hartwig & Wilkinson, 2003) It has been found out the underwriting losses in relation to malpractice insurance had dramatically increased from $230 million in 1990 to $3billion after 11 years in United States.

2.4. Major Countries in Healthcare Tourism

It has been analysed that there are certain countries (Malaysia, Thailand, Singapore, China, Philippines, Cuba, South Africa, Jordan and India) are battling hard for the capitalisation of existing opportunities (Bookman & Bookman, 2007). While, India has managed to enjoy more market share because of the fact that the country had managed to strengthen its capabilities especially in the category of modern healthcare systems and has leveraged its inherent incorporated within the county’s traditional healthcare systems (e.g. Siddha, Ayurveda, Naturopathy, Spiritualism and Yoga. Additionally, India has varied tourism destinations (architectural, backwaters, forts, treasures, palaces, springs, hills, jungles and deserts. In short, India geographical conditions and resources are more than enough in catering the needs of tourists in achieving a state of overall well-being. India also has a great edge over other competitor countries as the country is augmented with concentration techniques, mind control, intellectual capital, natural resources, tolerance and cultural diversity (Gupta & Sharma, 2013). Thus it has been contended that India is currently in an advantageous position over many of its major competing countries (Cochrane, 2007).

2.5. Healthcare Tourism in India

India has competitive edge in the healthcare tourism because of certain characteristics: healthcare professional availability, low-cost medical treatment, enhancing popularity of its traditional wellness systems and country’s existing reputation for treat of relatively advance healthcare segments (such as organ transplant, cardio-vascular surgery and eye surgery). It had been discovered through the findings of International Passenger Survey that over 2.2% foreign medical tourists visited India for the purpose of obtaining or undergoing healthcare services and medical treatment (Woodside & Martin, 2008). Moreover, the International Passenger Survey had projected that from the sum 2 million non-resident Indian about 10% of which used to come to India with healthcare motive. Therefore, there have been huge number of International tourists (together with non-resident Indians) come to India for undergoing wellness systems: Yoga, Ayurveda and Spiritual Healing. Hence estimated number of travelers who come to India in regard to this category is almost 200,000 on an annual basis (Shanmugam, 2013).

According to Incredible India (2005), it had been estimated that the average spending of International Travelers coming to India is around $2,000 per person. While the calculated overall expenditure incurred by foreign medical tourists is arounf $200 million on per year basis (Fitterling, 2008).

Correspondingly, it has been observed that about 10% of general foreign tourists visit India for pursuing wellness system and used to spend 20% of their aggregate expenditure for healthcare purposes. It has been discovered that the general spending of these travelers reach to $150 annually. By putting all figures together, it has been inclined that India used to generate approximately $600 million from its healthcare tourism industry (Kumar, 2008). And it has been determined that this industry is still growing at fast intensity and is also making significant impact on the country’s GDP2 (Gross Domestic Product) .

2.6. Initiative in India with respect to Healthcare Tourism

Massive inflow of foreign medical tourists for a broad healthcare service spectrum (ranges from wellness tourism to surgery & rehabilitation) has intended all of the country’s stakeholders to focus more on the given industry’s unexplored potential; It has been analysed that two major stakeholder: Industry and Government (either state or central governments) are jointing or independently taking initiative with an objective of making India as hot favourite destination for healthcare especially from the perspective of foreign medical tourists (Botterill et al., 2013).

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1 Traveling to places like mountains, sea-side, forests, riverbeds, valleys, plains or historic monuments located in other countries.

2 Economic Measure of a country.

Details

Pages
26
Year
2013
ISBN (eBook)
9783656734277
ISBN (Book)
9783656734291
File size
465 KB
Language
English
Catalog Number
v279772
Institution / College
University of Bedfordshire
Grade
B-
Tags
healthcare

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Title: Healthcare tourism opportunities for India