Friday, April 12, 2013

An Opportunity that Grabbed us

Benefits of Economy and a Quicker Passage to The Operating table have Made India one of The Front Runners in Medical Tourism. But Critical Failings, from The Government as well as The Private Sector, mean that India is Failing to Adequately tap The Opportunity

Since time immemorial, the mystical land of India has been enchanting foreigners from all over the world. Healing of the body, mind & spirit has been one of the country’s most compelling value propositions, one which even a young Steve Jobs couldn’t resist, many years ago. And as the costs of healthcare have soared, particularly in developing countries, India’s hospitals and physicians have made all possible efforts to become a destination for tourists who seek not just therapeutic solutions but a range of other treatments and sight seeing tours; adding to the “wellness” factor. Almost a decade has passed since medical tourism was originally envisioned as a major phenomenon in India.

A 2009 report by the Confederation of Indian Industries (CII) & McKinsey forecasts that medical tourism will generate $2.4 billion between 2009–2012 for India by attracting 1.1 million health tourists, up from 150,000 in 2002. India’s share in the global tourism industry is expected to rise to around 3% by 2013 (RNCOS report) with revenues of around $3 billion and a CAGR of 26% during 2011–2013.

There are over 3,371 hospitals and around 754,985 registered practitioners catering to the needs of traditional Indian healthcare. Indian hotels are also entering the wellness services market by collaborating with professional organisations in a range of wellness fields. According to the Ministry Of Tourism, as against an ordinary vacationer’s per-capita spend of $3,000 per visitor, the average medical tourist in India shells out more than $7,000 per visit. Traditionally patients from neighbouring SAARC countries and Middle East frequented hospitals in India. But patients from Africa and even Europe and US have started coming only in the last five years. Pricing is the clear advantage. The Planning Commission points out that India is far economical compared to peer countries. For example, heart bypass surgery costs $6,000 in India, $7,894 in Thailand, $10,417 in Singapore, $19,700 in Britain and $23,938 in the US.

India spends roughly 6% of GDP on healthcare and is expected to reach 8% by 2012. Private sector expenditure in healthcare is expected to reach $45 billion by 2012. But in comparison with America’s 15.3%, Switzerland’s 11.3% or France’s 11.1%, the country still falters when it comes to quality as well as quantity of medical facilities. B&E does a reality check to analyse whether the country has really lived up to the hype.

The flip side has majorly been the role of the government; or may we say, the lack of it. Although infrastructure spending for health care has intensified, only the private sector has flourished. Top Indian corporate hospitals like Apollo, Fortis, Wockhardt, Max and Manipal have stepped in to provide quality healthcare and technology. Nearly 75% of health care services and investments in India are provided by the private sector.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
 
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