Medical tourism has been with us for many decades. Thousands of years ago, health pilgrims travelled to mineral-rich thermal springs and during the 16th Century, medical tourism experienced a boom in Europe where tourist towns grew in places like Baden Baden, Bath or St. Moritz. However, globe-trotting patients only ever occupied a niche. What is getting people really excited today is the fact that medical tourism is on the threshold of a dramatic boom and is quickly becoming the only viable option for more and more people. According to a study published by Deloitte Consulting in August 2008 the number of Americans travelling abroad for treatment will increase from 750,000 in 2007 to 6 million by 2010 and reach 10 million by 2012. The authors reckon that this exodus will be worth US $21 billion a year in developing countries in four years time. The forecasted growth is particularly important in the US since around 46 million Americans lack health insurance and other tens of millions have minimal insurance coverage. Europe's state-funded systems still give patients a reason to stay at home, but even here, private patients may start to travel more as it becomes cheaper and easier to get treated abroad or as they become impatient with long waiting lists for treatment.
The key factors fostering the growth of this industry include:
- Quality & Price: An increasing number of hospitals are gaining international accreditation and common surgical procedures can be done in world-class hospitals for about a fifth or less of the price charged in American hospitals. Asian hospital chains stand to be the biggest winners with one of the most famous hospitals being the Bumrungrad in Thailand. Bumrungrad has been described as the "United Nations of hospitals" since it attracts more foreign patients than any other hospital in the world. It is run as a five star hotel (on-site valet parking, team of interpreters to help with language problems, limousine pick-up service at the airport) and is considered one of the top hospitals in the world with treatment here costing about one-eighth of what it does in the United States. There are also "local hospitals" going global. In recent years leading American hospitals such as the Mayo Clinic and Johns Hopkins have set up offshoots in the Middle East and Asia.
- Convenience & Speed: Two major draws to medical travel are the convenience and speed. Countries that operate public health care systems are often so taxed that it can take considerable time to get non-urgent medical care. In Britain and Canada it could take 1 year to get a hip replacement, while in Thailand, for example, it can be done within a week.
- Global Economy: A new global citizen whose life and work transcends borders is emerging. Many people no longer live exclusively in their country of origin and are becoming increasingly mobile in both their temporary and permanent work assignments. These global citizens are willing to pay for the healthcare systems which match their global lifestyle.
- Global Private Health Insurance Coverage: In an attempt to stay competitive and referring back to the "global citizen", there are a number of private health insurances who offer global coverage including costs of transportation. After all, if it is cheaper for the uninsured patient to go global, it is cheaper also for the insurer.
It is no surprise that, given the attractive growth forecasts of this sector, various countries are trying to promote themselves as "health care destinations" to get a piece of the pie. According to McKinsey & Company, the top 5 medical tourism destinations are currently Panama, Brazil, Malaysia, Costa Rica and India. India in particular is looking to become the world leader in medical tourism. Last year India received around 150,000 medical tourists and is forecasting an annual growth rate in this sector of 30%. The Middle East has also tried to learn from these destinations and is trying to create local brands in order to attract international patients and insurance companies. One of the most well known medical tourism projects in the Middle East is Dubai Healthcare City. Dubai Healthcare City was designed not only to attract medical tourists but also to reduce the need for residents to travel abroad to receive high quality treatment.
