AMITY UNIVERSITYAMITY SCHOOL OF BUSINESS
DISSERTION ON MEDICAL TOURISM
IN INDIA
UNDER THE GUIDANCE OF
Mrs. Radhika Meenakshi
SUBMITTED IN PARTIAL FULFILLMENTOF THE 3 YEAR COURSE OF BACHELOR OF
BUSINESS ADMINISTRATION (2005-2008)
SUBMITTED BY-Sharanjeet Singh BaathA111OIO8C52
1
ACKNOWLEDGEMENT
My gratitude goes to my mentor Ms. Radhika Menakshi, who has guided me through out this project and also my respected teachers Professor Alka Munjal, Ms. Ekta Kapoor and Ms.Supriya Bhasin at the Amity University for giving me the substantial knowledge and inspiration.
I would also like to thank Marketing Executives of indraprastha Apollo , Max Hospital, Fortis and Escorts for constant guidance to conduct the present arduous project and untiring cooperation which they extended to me throughout the duration of my dissertation.
I am thankful to the Amity Business School Library for allowing me access to information and knowledge
My special thanks are for those who spared time for providing information and responding to the questionnaire.
Sharanjeet singh BaathA1110108C-63
2
Amity University
--------Uttar Pradesh--------
Amity School of Business
CERTIFICATE
This Dissertation report on _______________________________ is submitted
in partial fulfillment of the requirement of Bachelor of Business
Administration (BBA), Of Amity School of Business, Amity University
Uttar Pradesh.
This is a bonafide work conducted by
_________________________ enrollment number
_____________________of BBA class of 2008; under the
guidance of ______________________ (industry guide) and
_____________________(faculty guide).
3
TABLE OF CONTENTS
CHAPTER 1.
INTRODUCTION 6- 9
a) Brief description of Healthcare industry.b) Healthcare in Indiac) Tourism in Indiad) Medical tourisme) Review of literature
CHAPTER 2
MEDICAL TOURISM 10-39
CHAPTER 3
Objective and sub objectives 40 Research methodology 41 Research design Data collection sources Primary data Secondary data Sample size 42 Limitations of the study Parameters and criteria for the viability of the project 43
CHAPTER 4
MARKET VIABILITY OF INDIAN HEALTHCARE INDUSTRY 43-55
4
Segmentation Marketing mix Demand forecast
CHAPTER 5
SAMPLE BACKGROUND
a) Apollo 55-58b) FORTIS 58-60c) Max Hospital 60-61d) Escorts 61-64
CHAPTER 6
Analysis and interpretation 65-71
CHAPTER 7
Findings 72-73Conclusion 74-75 Recommendation 76
CHAPTER 8
APPENDIX
Bibliography 77-78 Questionnaire 79-80
5
CHAPTER 1
HEALTHCARE INDUSTRY
The health care industry is considered an industry or profession which
includes peoples exercise of skill or judgment or the providing of a service
related to the preservation or improvement of the health of individuals or the
treatment or care of individuals who are injured, sick, disabled, or infirm.
The delivery of modern health care depends on an expanding group of
trained professionals coming together as an interdisciplinary team.
HEALTHCARE IN INDIA
Healthcare in India is the responsibility of the individual Indian states. The
Indian constitution charges those states with "the raising of the level of
nutrition and the standard of living of its people and the improvement of
public health". There is also a National Health Policy, endorsed by
Parliament in 1983.
TOURISM IN INDIA
6
Welcome to Incredible India, where culture echoes, tradition speaks, beauty enthrall and diversity delights.
Indian tourism is one of the most diverse products on the global scene.
India has 26 world heritage sites. It is divided into 25 bio-geographic
zones and has wide ranging eco tourism products. Apart from this,
India has a 6,000 km coastline and dozens of beaches. . It also has
one of the world's biggest railway systems opening possibilities for
those interested in rail tourism. India also has excellent hospitals
offering affordable Medicare and traditional healthcare systems like
Ayurveda.
MEDICAL TOURISM
Medical Tourism refers to movement of consumers to the country providing
the service for diagnosis and treatment. During the past few years, the
number of people going out of their home country to consume health
services has significantly increased. The size of this market is estimated to
be $40 billion based on a Saudi Report in 2000. During the past four years,
the market grew at a whopping rate of 20-30% and is expected to grow
further. Considering this growth the current market size is estimated to be
7
$100 billion. Medical Tourism industry offers tremendous potential for the
developing countries because of their low-cost advantage. The advantages of
medical tourism include improvement in export earnings and healthcare
infrastructure.
Medical tourism can be broadly defined as provision of ‘cost effective’
private medical care in collaboration with the tourism industry for patients
needing surgical and other forms of specialized treatment. This process is
being facilitated by the corporate sector involved in medical care as well as
the tourism industry - both private and public.
REVIEW OF LITERATURE
An estimated 150,000 "medical tourists" visited India last year, representing a 20 per cent jump over the previous year.
The CII-McKinsey report suggests that medical tourism could fetch as much as $2 billion by 2012, compared to an estimated $333 million currently.
Ayurveda tourism earned RS.6000 crore last year A Famous Mumbai and Goa based cosmetic surgeon says his practice
goes 1200 international patient last year, double the number from
8
previous year
Source- http://en.wikipedia.org/wiki/Healthcare_in_India
Medical Treatment in USA Equals toA tour to India + Medical Treatment + Savings
(SOURCE CII-MCKINSEY REPORT)
"First World treatment' at Third World prices".
Patients from the UK and North America make up a little more than a trickle right now, but there is big potential for growth," said Mr Anil Maini, head of healthcare business marketing at the Escorts Heart Institute and Research Centre, New Delhi
Source -The Washington.Thursday October 21st 2004.
National Health policy 2002, for example, says: “To capitalise on the comparative cost advantage enjoyed by domestic health facilities in the secondary and tertiary sector, the policy will encourage the supply of services to patients of foreign origin on payment.
Source- www.indiamedicaltourism.com
9
CHAPTER 2
Medical Tourism
Introduction:
The purpose here is to provide you with up to date
information and resources about the rapidly growing
industry known as "medical tourism" so that you may
make educated and well informed decisions regarding
your travel, accommodations, and medical, dental, and
surgical care.
10
It is my sincere hope that the information provided here will assist and
empower you to make confident decisions regarding your health and well
being.
Why India?
The countries where medical tourism is being actively
promoted include Greece, South Africa, Jordan, India,
Malaysia, Philippines and Singapore. India is a recent
entrant into medical tourism. According to a study by
McKinsey and the Confederation of Indian Industry,
medical tourism in India could become a $1 billion business by 2012. The
report predicts that: "By 2012, if medical tourism were to reach 25 per cent
of revenues of private up-market players, up to 2,297,794,117 USD will be
added to the revenues of these players". The Indian government predicts that
India's $17-billion-a-year health-care industry could grow 13 per cent in
each of the next six years, boosted by medical tourism, which industry
watchers say is growing at 30 per cent annually.
Price advantage is a major selling point. The slogan, thus is, "First World
treatment' at Third World prices". The cost differential across the board is
huge: only a tenth and sometimes even a sixteenth of the cost in the West.
Open-heart surgery could cost up to $70,000 in Britain and up to
$150,000 in the US; in India's best hospitals it could cost between $3,000
and $10,000. Knee surgery (on both knees) costs 350,000 rupees ($7,700)
in India; in Britain this costs £10,000 ($16,950), more than twice as
11
much. Dental, eye and cosmetic surgeries in Western countries cost three to
four times as much as in India.
India have a lot of hospitals offering world class treatments in nearly every
medical sector such as cardiology and cardiothoracic surgery, joint
replacement, orthopaedic surgery, gastroenterology, ophthalmology,
transplants and urology to name a few. The various specialties covered are
Neurology, Neurosurgery, Oncology, Ophthalmology, Rheumatology,
Endocrinology, ENT, Paediatrics, Paediatric Surgery, Paediatric Neurology,
Urology, Nephrology, Dermatology, Dentistry, Plastic Surgery,
Gynaecology, Pulmonology, Psychiatry, General Medicine.
For long promoted for its cultural and scenic beauty, India is now being put
up on international map as a heaven for those seeking quality and affordable
healthcare. Analysts say that as many as 150,000 medical tourists came to
India in 2004. As Indian corporate hospitals are on par, if not better than the
best hospitals in Thailand, Singapore, etc there is scope for improvement,
and the country is becoming a preferred medical destination. In addition to
the increasingly top class medical care, a big draw for foreign patients is also
the very minimal or hardly any waitlist as is common in European or
American hospitals.
Leisure Tourism is already very much in demand in India as the country
offers diverse cultural and scenic beauty. India has almost all sort of
destinations like high mountains, vast deserts, scenic beaches, historical
monuments, religious temples etc. Known for its hospitality for tourists, the
12
county has opened doors to welcome with the same hospitality f medical
patients/ service seekers.
MEDICAL TOURISM AS AN INDUSTRY
Medical tourism can be broadly defined as provision of ‘cost effective’
private medical care in collaboration with the tourism industry for patients
needing surgical and other forms of specialized treatment. This process is
being facilitated by the corporate sector involved in medical care as well as
the tourism industry - both private and public.
In many developing countries it is being actively promoted by the
government’s official policy. India’s National Health policy 2002, for
example, says: “To capitalise on the comparative cost advantage enjoyed by
domestic health facilities in the secondary and tertiary sector, the policy will
encourage the supply of services to patients of foreign origin on payment.
The rendering of such services on payment in foreign exchange will be
treated as ‘deemed exports’ and will be made eligible for all fiscal incentives
13
extended to export earnings”. The formulation draws from recommendations
that the corporate sector has been making in India and specifically from the
“Policy Framework for Reforms in Health Care”, drafted by the prime
minister’s Advisory Council on Trade and Industry, headed by Mukesh
Ambani and Kumaramangalam Birla.
2.Overview Of Medical Tourism In Global Scenario
Countries from where people head for India are UK, Bangaladesh, Oman,
SriLanka, Indonesia, Mauritius, Nigeria, Kenya, and Pakistan etc. The
international patients can make decision by looking at the following table,
which shows charges against the type of surgery.
Cost Table
Procedure Charges (US $)
Category US INDIA
Heart Surgery
Bone marrow transplant
30,000
250,000
8000
69,000
14
Liver transplant
Orthopaedic Surgery
Cataract Surgery
300,000
20,000
2,000
69,000
6,000
1,250
India offers a real good cost advantage over the western countries. This cost
factor becomes very important while formulating schemes to attract the
Indian diaspora as they generally compare the relative costs before going for
treatment.
Healthy Budget table
Heart Surgery Costs $ 30,000 ( Rs 14.4 lakhs) in the
US, But Indian Hospitals charge Rs 4
Lakh.
Orthopedic Surgery
In the west, the expense comes to
$20,000(Rs 9.6 lakh). The package in
India costs one third of that amount.
Cataract Surgery $20,000 is the price for surgery in the
15
US. In India, it comes to just $500
Liver Transplant The cost comes to a whopping
$300,000 abroad while Indian super
specialty hospitals perform the
operation for
Global Medical Tourism
Country
No of
Foreigners
treated last
year
From
Money
Earned
Strengths
THAILAND
600,000
US, UK $470 m
Cosmetic
surgery,
Organ
transplants,
Dental
16
treatment,
Joint
replacements
JORDAN
126,000
Middle East
$600 m
Organ
transplants,
Fertility
treatment,
Cardiac care
INDIA
100,000
Middle East,
Bangaladesh,
UK,
Developing
countries
N.A
Cardiac care,
Joint
Replacements,
Lasik
MALAYSIA
85,000
US, Japan,
Developing
countries
$40 m
Cosmetic
surgery
17
SOUTH
AFRICA
50,000
US, UK
N.A
Cosmetic
surgery,
Lasik. Dental
treatment
Treatment Costs ($)*
Procedure
US
INDIA
SOUTH
AFRICA
THAILAND
Facelift
8000-20,000
10,000-
20,000
1,252
2,682
Hip 17,000 2,500 6,671 N.A
18
replacement
Open heart
surgery
150,000
5,000-
10,000
13,333
7,500
Eye (Lasik)
3,100
7,000
2,166
730
Medical Travelers Clusters
Ø The first is made up of the SAARC countries.
Ø The second major group- the African (Nigeria ,Nambia etc)
Ø The third big group of medical travelers comes from the Middle
East .
Ø The last group of medical travelers from a motley lot
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OUTSOURCING
Outsourcing of logistics has changed over the years we have seen business
models adapted to meet the needs of the buyer. Hospital major areas like
house keeping, Food and Beverage, Lenin, diagnostics labs, medical
equipment, ambulatory services etc are outsourced. Hospital focuses on core
activity of patient care.
Medical Business Process Outsourcing includes Medical coding, Billing,
Claims Processing, Transcription etc.
6.1 GROWTH OF THE MEDICAL TOURISM INDUSTRY
The countries where medical tourism is being actively promoted include
Greece, South Africa, Jordan, India, Malaysia, Philippines and Singapore.
India is a recent entrant into medical tourism. According to a study by
McKinsey and the Confederation of Indian Industry, medical tourism in
India could become a $1 billion business by 2012. The report predicts that:
20
“By 2012, if medical tourism were to reach 25 per cent of revenues of
private up-market players, up to Rs 10,000 crore will be added to the
revenues of these players”. The Indian government predicts that India’s $17-
billion-a-year health-care industry could grow 13 per cent in each of the next
six years, boosted by medical tourism, which industry watchers say is
growing at 30 per cent annually.
In India, the Apollo group alone has so far treated 95,000 international
patients, many of whom are of Indian origin. Apollo has been a forerunner in
medical tourism in India and attracts patients from Southeast Asia, Africa,
and the Middle East. The group has tied up with hospitals in Mauritius,
Tanzania, Bangladesh and Yemen besides running a hospital in Sri Lanka,
and managing a hospital in Dubai.
Another corporate group running a chain of hospitals, Escorts, claims it has
doubled its number of overseas patients - from 675 in 2000 to nearly 1,200
this year. Recently, the Ruby Hospital in Kolkata signed a contract with the
British insurance company, BUPA. The management hopes to get British
patients from the queue in the National Health Services soon. Some
estimates say that foreigners account for 10 to 12 per cent of all patients in
21
top Mumbai hospitals despite roadblocks like poor aviation connectivity,
poor road infrastructure and absence of uniform quality standards.
Analysts say that as many as 150,000 medical tourists came to India last
year. However, the current market for medical tourism in India is mainly
limited to patients from the Middle East and South Asian economies. Some
claim that the industry would flourish even without Western medical
tourists. Afro-Asian people spend as much as $20 billion a year on health
care outside their countries – Nigerians alone spend an estimated $1 billion a
year. Most of this money would be spent in Europe and America, but it is
hoped that this would now be increasingly directed to developing countries
with advanced facilities.
Contribution to GNP
According to the World Travel and Tourism Council, India' s travel
and tourism (T&T) industry is expected to contribute 2.1 percent to
Gross Domestic Product in 2006 (INR 713.8 billion or US$16.3
billion).
22
In the first half of the Annual Plan period of 2005-2006, the Ministry
of Tourism has taken several initiatives in the field of infrastructure
development and positioning Indian tourism as a major engine for
economic growth. These include:
Emphasis for developing the existing and new destinations to
world-class standards.
Improvement of connectivity to important destinations.
Identification of 10-15 new destinations / circuits by each state /
UT for development to world class standard with all the required
infrastructure components.
Benefits of Medical Tourism
Tangible
Foreign exchange earrings which enable economic wealth of nation
· Cost Advantage in Tariff over the Developed countries
· Improve information sharing
· Increase in efficiency of patient care process, cutting edge treatment.
· Improvement in hospital supply chain efficiency
23
· Strategic alliances with business partners within and outside the
country
· Technology and Knowledge Transfer
· Better logistics performance both in internal and external
· Creation of employment opportunities in the industry
· Better utilization of Infrastructure and skilled manpower
· Opportunity for development in Infrastructure in Health, Tourism and
Travel.
· Economies of scale.
· Connectivity with air, road, rail and information and communication
industries
· Clustering of medical Travelers
· Health opportunities for foreign patients may lead to better standards
at home.
· Scope for Research and Development to offer comprehensive medical
solutions.
Intangible
· International acceptance of country as a global healthcare provider
· Social and cross cultural experience
24
· International customer relations
· Global Marketing and Medical Trade relations
· Brand image of nation as world-class healthcare destination.
· Competitive advantage
· Better coordination among the partners i.e. hospital and hospitality
industry.
· Public and Private Partnerships
· Patient satisfaction
Is India prepared for global medical tourism boom?
In recent years, India is being seen as an important player in the globally
growing "Medical Tourism", which is projected as a new segment in travel
and healthcare business. "Global health destination" .
In simple words, medical tourism provides state-of-the-art private medical
care in collaboration with tourism industry to patients from other countries at
highly competitive price when compared to those prevalent in the western
countries. The CII- McKinsey report mentions that the medical tourism
market has been growing at the rate of 15 per cent for past five years and by
25
2012, Rs 10,000 crore will be added to revenues of the private players.
Globally, medical tourism is said to be USD 40 billion industry and analysis
available project that people from Afro-Asian countries spend as much as
USD 20 billion every year on healthcare services from outside their
countries.
Foremost, amongst the current private players, in medical tourism are
hospitals in the Apollo chain. Main destinations are Delhi, Mumbai,
Chennai, Bangalore and Hyderabad. These cities have private hospitals with
medical expertise that can offer world class healthcare that costs one fifth to
one tenth of the cost in US or Europe depending on the intervention
required.
In addition to above destinations, the country has many cities with advanced
medical facilities making India, a country with tremendous potential to
capitalise on to increase its earnings to more than USD 1 billion annually
and create hundreds of thousands new jobs in many sectors. This projection
excludes earnings from other products included in the wellness tourism
meant for rejuvenation of body and mind, eg herbal therapy, naturopathy,
yoga, aromatherapy, reiki, music therapy which does not require advanced
medical expertise.
26
The apprehensions expressed by some sections that "systematic development
of medical tourism will boost up earnings by catering to the wealthy
foreigners and Indians working in the foreign countries but it may adversely
hit the low income population" need to be addressed for gaining approval of
political opinions with varied views on liberalisation. From past ten years,
India has entered a phase in medical expertise that is considered on par with
international standards. This is because of high quality doctors and medical
entrepreneurs who developed hospitals with required infrastructure and
management style. Some of these hospitals have marketing departments to
increase visibility and acceptance of their products in some countries.
Medical Tourism in India – The Current Scenario
Medical Tourism is poised to be the next Indian success story after
Information
Technology. According to a Mckinsey-CII study the industry’s earning
potential
estimated at Rs.5000-10000 Crores by 2012. Worldwide, healthcare is said
to be a $3-trillion industry, and India is in a position to tap the top-end
segment by highlighting its facilities and services, and exploiting the brand
equity of leading Indian healthcare professionals across the globe.
27
“Medical Tourism", the term refers to the increasing tendency among
people from the UK, the USA and many other third world countries, where
medical services are either very expensive or not available, to leave their
countries in search for more affordable health options, often packaged with
tourist attractions.
Tourism is an integral part of many economies’ services industry and is an
important source of foreign exchange. The labour-intensive nature of the
tourism industry also makes it an excellent generator of employment. In
2002, the travel-and-tourism industry is expected to generate some US$3.3
trillion of GDP and almost 200 million jobs across the world economy.
Approximately one third of this would come directly from the industry itself
and the remainder from the strong linkages to other related sectors such as
entertainment, retail and construction.
Medical Tourism is perceived as one of the fastest growing segments in
marketing ‘Destination India’ today. The equation is ‘ World Class
Healthcare ’ at 'Economical Price '. Stable economic growth will create an
increase in freight flows from, towards, through, and inside the country. All
28
this will stimulate the investments in roads and railroads. As globalization
advances, both domestic and international tourism pose new and
unprecedented challenges to the health sector and its various partners. The
size of the Medical Tourism industry stands between Rs 1200 Crore to Rs
1500 Crore and is growing at rate of 30 percent annually.
More importantly, Medical Tourism is growing rapidly and turning out to be
an immense business opportunity for nations that are positioning themselves
correctly. Last year, just five countries in Asia – Thailand, Malaysia, Jordan,
Singapore and India- pulled in over 1.3 million medical travelers and earned
over $1billion (in treatment costs alone). In each of these nations, medical
travel spends are growing at 20% plus year-on-year. Elsewhere around the
world, Hong Kong, Lithuania and South Africa are emerging as big
medical/healthcare destinations. And a dozen other nations including Croatia
and Greece plan to make themselves attractive healthcare destinations.
Five years ago, hardly 10000 foreign patients visited India for medical
treatment.
Today India is a key player in medical tourism with 100,000 foreign patients
coming in every year and revenue of Rs.1500 Crores. The current market
29
growth-rate is around 30% per year and the country is inching closer to
major
players like Singapore and Thailand.
The following sections discuss in detail the
current state of the Medical Tourism in India:
India’s Medical Infrastructure
15000 Hospitals
875000 Hospital Beds
500000 Doctors
737000 Nurses
170 Medical Colleges
350000 Pharmacies
3.6 Health Tourism In India – Advantages and Opportunities
30
•The inflow of health tourists from the West, especially the UK, US and
some of the European countries has been on the rise for the last couple of
years. Price difference or affordability of the treatment, coupled with
quality of doctors are the main reasons for the growing western traffic .
• The quality of Indian hospitals has improved significantly and now
matches with the best in any part of the world. India has more than 100
healthcare institutions, which are of international standard.
• Many hospitals in India today have the infrastructure and equipment that
match with the best centers in the world, be it
transplantations(liver/kidney/heart or bone marrow), cancer treatment,
including radiotherapy, neurosurgery, including sterotactic surgery.,
angioplasty and cardiac surgery(bypass and paediatric)
• Public-Private Partnership combines internal hospital expertise with supply
chain and logistics expertise.
• The medical tourism industry which is estimated to be worth Rs 1500
crores annually has not only the potential to generate substantial forex
31
earnings but also provide employment opportunities for the large pool of
skilled labor available in India, according to Dr. PC Reddy, chairman,
Apollo Hospitals Group, India.
• According to Group President Pratap C.Reddy, the annual health bill of
people from Afro-Asian countries seeking treatment outside their country
is $10 billion. If India can tap even a fraction of that market, the potential is
enormous.
Joint Commission Accreditation of Healthcare Organizations (JCAHO)
India - Strategic Thrusts for the Future
The following section lays down the strategy for India to achieve leadership
position in medical tourism. The strategy largely draws from the discussions
in
previous section.
5.1 Role of Government
The role of Indian Government for success in medical tourism is two-fold:
Acting as a Regulator to institute a uniform grading and accreditation
32
system for hospitals to build consumers’ trust.
Acting as a Facilitator for encouraging private investment in medical
infrastructure and policy-making for improving medical tourism.
For facilitating investment the policy recommendations include:
1. Recognize healthcare as an infrastructure sector, and extend the benefits
under sec 80-IA of the IT Act. Benefits include tax holidays for five years
and concessional taxation for subsequent five years.
2. The government should actively promote FDI in healthcare sector.
3. Conducive fiscal policies - providing low interest rate loans, reducing
import/excise duty for medical equipment
4. Facilitating clearances and certification like medical registration number,
anti-pollution certificate etc.
The above measures will kick-start hospital financing, which is struggling
now
due to capital intensive and low efficiency nature of healthcare business.
For facilitating tourism the government should:
1. Reduce hassles in visa process and institute visa-on-arrival for patients
2. Follow an Open-Sky policy to increase inflow of flights into India
3. Create Medical Attachés to Indian embassies that promote health services
33
to prospective Indian visitors
Formation of National Association of Health Tourism (NHAT)
The promotion of medical tourism has so far been very fragmented with
initiatives
by few states and private hospitals. The earlier discussions clearly underline
the
need for presence of an apex body that can coordinate the promotion of
medical
tourism abroad. In the Indian context too, this has been successfully
demonstrated in the software industry by NASSCOM. It is therefore
essential to
form an apex body for health tourism – NAHT. The NAHT should be
formed as
an association of the private hospitals operating in the industry. The main
agenda
for NAHT will be:
1. Building the India Brand Abroad: Classify the target consumer segments
based on their attractiveness and position the India Brand based on the three
34
main value propositions – high quality service, value for money and
destination diversity. An integrated marketing Communications campaign
using print, media and road shows should be developed.
2. Promoting Inter-Sectoral Coordination: The NAHT should take up the
responsibility of aligning the activities of various players – Tourism
Department, Transport Operators, Hotel Associations, Escorts personnel etc.
3. Information Dissemination using Technology: NAHT should set up a
portal on medical tourism in India targeted at sharing information and
enabling online transactions.
4. Standardization of Services: NAHT should also focus on establishing
price
parity for similar kinds of treatments in various hospitals and ensure the
hospitals adhere to high hygiene and quality standards.
Role of Private Sector
The action items for private sector are:
1. Increased participation in building infrastructure: To achieve its full
35
potential, it is estimated that India needs an investment of Rs.100000 to
140000 Crores by 2012. Since the government can afford only a third of the
amount, the private sector should play an active role to fill the gap.
2. Integrate Horizontally: Private hospitals should also plan to integrate
horizontally for providing end-to-end healthcare solutions to consumers. For
example Apollo multi specialty hospitals is already planning to set up spas
and alternative mediclinics to attract more foreign tourists.
3. Joint Ventures / Alliances: To counter increasing competition, Indian
hospitals should tie-up with foreign institutions for assured supply of
medical
tourists. Specifically tie-ups with capacity constrained hospitals and
insurance
providers will provide significant competitive advantage.
5.4 Value Innovation Through MEDICITIES
Another successful example of the software industry is the establishment of
Export Oriented Software Technology Parks. This model can be successfully
replicated in the medical tourism industry by means of MEDICITIES. Each
36
MEDICITY could be a self-sustained healthcare hub with super specialty
hospitals of international standards, ancillary facilities, research institutions,
health resort, rehabilitation centers and residential apartments. This model
can
be floated through a public-private partnership. The government will provide
land
and ancillary services and the private players will provide infrastructure and
services. From the consumer’s point of view, the MEDICITIES will offer
superior
value at affordable prices. From industry’s point of view, this will offer
significant
competitive advantage for India.
37
The cartoon strip adds sarcasm to the upcoming
medical tourism in India.
38
CHAPTER 3
OBJECTIVE
To study the feasibility of Medical Tourism in Delhi and NCR.
SUB OBJECTIVE
To compare the performance of four hospitals in the region in
selected operations on the basis of following
i. Cost
ii. Value added services
iii. Popular operations
iv. Promotional activities
v. Approachability
To Analyze trends Indian medical and healthcare Industry.
39
RESERCH METHDOLOGY
RESERCH DESIGN
The research will be qualitative in nature as a lot of data is required to back
the conclusion of the report.
DATA COLLECTION SOURCES-
This study proposes to collect data from
the Primary as well as the Secondary Sources.
PRIMARY DATA
Data collection tools like questionnaires have been used and also personal
interview with the executives and surgeons of hospital like
Apollo,Fortis,Escorts,Max Hospital were conducted to get detailed
information. Interaction with foreign tourist also helped in quantifying
various services provided by the Hospitals and the Indian Tourism Board.
SECONDARY DATA
40
Various sources like internet, Medical Journals, Magazines, Newspapers
have been used to collect Secondary data.
SAMPLE SIZE
The sample size taken for the study is four hospitals which have been
chosen selectively namely
FORTIS
APOLLO
MAX HEALTHCARE
ESCORTS
LIMITATIONS OF THE STUDY
The study was restricted due to the following points
Denial to disclosure of exact statistical data by the concerned
authorities.
Also one of the most renowned hospital in India AIIMS denied to
disclose any figures about medical tourism .
Overall selection of 4 – 6 operations restricted the study.
Locating less number of foreigner medical tourist around.
Foreign tourist not in a state to interact as they come to India for
major operations.
41
Lack of availability of empirical data on internet and medical
journals.
PARAMETERS AND CRITERIA FOR THE VIABILITY OF THE
PROJECT
The above mentioned hospitals were evaluated on the basis of following
operations and surgeries namely
HEART SURGERY(Intervention cardiology
KIDNEY TRANSPLANT
LIVER TRANSPLANT
ORTHOPEDIC SURGERY(Knee replacement)
PLASTIES
NEURO SURGERY
OTHER FACTORS
Cost and value added offerings.
After care amenities.
Promotional activities done by the hospitals.
Packages offered by hospitals
42
Foreigners visiting there hospital.
CHAPTER 4
MARKET VIABILITY OF INDIAN HEALTHCARE INDUSTRY
The Indian consumers can be assessed or segmented as per the following
parameters..
Market Segmentation
A market is composed of different users having different responses to
market offerings. This makes it essential that hospital organizations,
especially for making a microscopic study of users’ needs and requirement,
make possible grouping of markets. The marketing strategy formulated on
the basis for segmenting the market is income. To some extent regional
considerations may also be adopted as a base for segmenting the market. The
below is the segmentation on the basis of regional consideration:
43
The aforesaid segmentation makes it clear that doctors would find a
variation in the living habits of both the segments.
Another important base for segmenting hospital services may be income
group. This helps hospital organisations in identifying the status of the users
of services. It is essential as the marketing principles recommend different
pricing strategies on the basis of level of income.
44
Regional Segmentation
Urban UsersRural Users
Educated Illiterate Poor Rich
Educated Illiterate Poor Rich
Segment
High -IncomeMiddle- IncomeLow - IncomeNo- Income
This would help hospital organisations in charging more from high and
middle income groups, charging equal to cost from the low income group
and making available free services to the no – income group. Another
important advantage of this segmentation is concerned with implementation
of modernization and expansion plan for the hospitals.
THE MARKETING MIX OF INDIAN MEDICAL TOURISM
PRODUCT-
Some of the exclusive medical packages offered by the Indian
medical tourism are in the folowing treatments
MEDICAL PACKAGES
HEART PACKAGES
CARDIAC SURGERY AND CARDIOLOGY
ANGIOPLASTY
ANGIOGRAPHY
CARDIOLOGY ROBOTIC SURGERY
OPEN HEART SURGERY
PAEDIATRIC INTERVENTION
ORTHOPAEDIC SURGERIES
JOINT KNEE REPLACEMENT(UNILATERAL AND BILATERAL
NEURO SURGERY
PARKINSONS
EPILEPSY
ESSENTIAL TREMORS
MALIGNANT TUMORS
CARDIOLOGY
45
ECG
DOPPLER TEST
TEE
BEATING HEART SURGERY
VALVE SURGERY
STENTING
PERIPHERAL VASCULAR SURGERY
CONGENITIAL HEART DISEASE
NEPHROLOGY
DIALYSIS
HAEMODIALYSIS
SLOW CONTINOUS ULTRAFICATION
PLASMAPHERISIS
DENTAL CARE PACKAGES
UROLOGY
COSMETIC TREATMENT ETC
PRICE
The price range offered by the Indian medical industry are
unbelievable because india offers the most reasonable prices..
India is not only cheaper but the waiting time is almost nil. This is due to
the outburst of the private sector which comprises of hospitals and clinics
with the latest technology and best practitioners.
46
Procedure Charges in India & USA –
Procedure United States (USD) Approx
India (USD) Approx
Bone Marrow Transplant
USD 2,50,000
USD 69,200
Liver Transplant USD 3,00,000
USD 69,350
Heart Surgery USD 30,000 USD 8,700
Orthopedic Surgery
USD 20,000 USD 6,300
Cataract Surgery USD 2,000 USD 1,350
Smile Designing USD 8,000 USD 1,100
Metal Free Bridge
USD 5,500 USD 600
Dental Implants USD 3,500 USD 900
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Porcelain Metal Bridge
USD 3,000 USD 600
Porcelain Metal Crown
USD 1,000 USD 100
Tooth Impactions
USD 2,000 USD 125
Root Canal Treatment
USD 1,000 USD 110
Tooth Whitening
USD 800 USD 125
Tooth Colored Composite
USD 500 USD 30
Fillings / Tooth Cleaning
USD 300 USD 90
INDIA V/S UK
Significant cost differences exist between U.K. and India when it comes to
48
medical treatment. Accompanied with the cost are waiting times which exist
in U.K. for patients which range from 3 months to over months.
Procedure
United Kingdom (USD) Approx
India (USD) Approx
Open Heart Surgery
USD 18,000 USD 4,800
Cranio-Facial surgery and skull base
USD 13,000 USD 4,500
Neuro- surgery with Hypothermia
USD 21,000 USD 6,800
Complex spine surgery with implants
USD 13,000 USD 4,600
Simple Spine Surgery
USD 6,500 USD 2,300
Simple Brain Tumor -Biopsy -Surgery
USD 4,300 USD 10,000
USD1,200 USD 4,600
Parkinsons - Lesion- DBS
USD 6,500 USD 26,000
USD 2,300 USD 17,800
Hip Replacement USD 13,000 USD 4,500
PLACE
All the hi tech hospitals like Apollo, escorts, max hospitals are located in all
the metro cities of the country and they are targeting the tier 2 cities due to
the extreme market potential. Indian healthcare industry is the second in the
country as its growing by leaps and bounds so the Indian hospital industry is
getting organized.
49
PROMOTION
First and foremost it suggests that medical expertise in India
is at par with the developed world although the infrastructure to support it is
sadly lacking. This is the fact experienced by almost all Indian doctors who
come to seek work in the Western World.
PROMOTIONAL ACTIVITIES TO PROMOTE MEDICAL TOURISM
CME ( Continuous medical education for doctors)
Patient Education Progress
Free health Checkup camps.
Tie ups with various hospitals and insurance companies abroad.
Participation in Health Expo’s abroad.
Tie ups Embassies.
AD campaigns.
Nodal centers in other countries.
Reduction of Excise duty from 17% to 8% on all goods produced in
the pharmaceutical sector as per the Budget 2008-2009.
DEMAND FORECAST-
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Increasing globalization with reduction of travel times combined with added tourist attractions puts India in a good position to promote Health Tourism.
India’s population crossed one billion in 1999 and is projected to exceed 1.5 billion in 2050. The infant mortality rate though having decreased from 225-250 in the 1940’s to 72 in 1997, is still high. Mortality from Tuberculosis and Acquired Immune Defeciency Syndrome are major problems.(3) There is always the chance of the poor being exploited by unscrupulous element’s for purposes such as organ transplantation though trade in organs is illegal in India.(4)
The CII-McKinsey report suggests that medical tourism could fetch as much as $2 billion by 2012, compared to an estimated $333 million currently.
Reference:
.Mudur G. Hospitals in India woo foreign patients. BMJ 2004; 328:1338.
HEALTHCARE INFRASTRUCTURE
India needs at least 750,000 extra beds to meet the demand for
inpatient treatment by 2012- opportunity in tertiary healthcare
facilities.
India needs at least 1 million more qualified nurses and 500,000 more
doctors by 2012 as compared to existing number.- opportunity in
medical education.
To raise this infrastructure, total additional investment to the tune of
US$ 25-30 billion is needed by 2012.
Government and international agencies will only be able to gear up
US$ 7 billion and the rest of investment has to come from private
sector.
51
FACTORS ENHANCING MEDICAL TOURISM IN
INDIA
Cost Competitiveness – The Key driver
The main reason for India’s emergence as a preferred destination is the
inherent
advantage of its healthcare industry. Today Indian healthcare is perceived to
be
on par with global standards. Some of the top Indian hospitals and doctors
have
strong international reputation. But the most important factor that drives
medical
tourism to India is its low cost advantage. Majority of foreign patients visit
India
primarily to avail of “First World Service at Third World Cost”.
52
Source: Business World India and Indian Brand Equity Foundation
As the table above shows, India has significant cost advantages in several
health
procedures making it a preferred destination
3.2 The Service Spectrum
India offers a variety of services for overseas patients. The table below
presents
a classification of the service spectrum.
53
3.3 Consumer Profile
The demand for Indian healthcare services primarily comes from three types
of
consumers. The table below presents the profile of these three consumer
groups:
54
Though tourism is not the primary need of these consumers, it offers
additional
attraction particularly for people traveling for cosmetic surgery and less
complicated procedures.
55
CHAPTER 4
HISTORY OF HOSPITALS
APOLLO HOSPITAL
Apollo Hospitals Group is the acknowledged leader in bringing super
speciality world-class healthcare to India. It is presently the largest
integrated healthcare company in Asia and the first to attract foreign
investment .
Indraprastha Apollo Hospitals is spread over 12 acres of land and has a
built-up area of 600,000 square feet. A joint venture between the Apollo
Hospitals Group and the Government of Delhi, it was founded in 1996. It
is the largest hospital of the group and was built at a cost of 44 million US
dollars.
With a bed-capacity of 560 (including 140 ICU beds and 44 HDU beds)
and 14 Operation Theatres, expert medical professionals and the latest
technology, the Indraprastha Apollo Hospitals is the automatic choice for
outstanding healthcare in the country’s capital.
The hospital handles close to 200,000 patients a year, of which 12,000 are
international patients. International patients come to Indraprastha Apollo
from the USA, UK, Europe, Middle East, Australia, Yemen, Africa and
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CIS countries, among other countries.
Indraprastha Apollo Hospitals was the first Indian hospital to be awarded
the gold-standard certification from the Joint Commission International
(JCI) USA .
Highlights
The first Indian hospital to receive the Joint Commission International
(JCI)
USA accreditation the gold-standard in hospital certifications
worldwide
First successful liver-kidney transplant in the Indian sub-continent
Grade A by CRISIL
Rated Best Multi-speciality Private Hospital in Delhi by The Week
magazine
BS EN ISO 14001: 1996 for Environmental Management System
BS EN ISO 9001: 2000 for Quality Management System
Medical Milestones
Performed 1,24,908 Preventive Health Checks
Performed 836 kidney transplants
Performed 90 liver transplants
Performed the first successful liver transplant in the Indian sub-
continent
Centres of Excellence
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The Centres of Excellence at the hospital are:
Cardiology
Neurosciences
Oncology
Orthopedics
Pediatrics
Organ Transplants
Minimal Access Surgery
FORTIS
One of India's leading tertiary level healthcare groups, Fortis Healthcare comprises a network of 13 hospitals with a bed capacity of 1803 beds and 13 Heart Command Centres. Following the acquisition of the renowned Escorts Healthcare System, Fortis Healthcare operates one of the world's largest Cardiac programmes. The group's Fortis Hospital at Noida, next-door to Delhi, is India's foremost tertiary care facility in Orthopaedics and Neuro Sciences. The group also performs cutting edge surgeries in various specialities ranging from cosmetology, woman & child health, ophthalmology, dental, ENT, urology, and minimal invasive surgery. Our facilities ensure that there is genuine Medical Value in health travel to India.
The Medical Value that we bring to our services is because the Fortis Healthcare team of expert doctors, mostly western trained, is supported by highly skilled nursing professionals, technicians,and aided by state-of-the-art medical equipment at their command.
58
At Fortis Healthcare, we recognize that international patients have special needs and requirements and desire real medical value when they travel to India. To provide a highly specialized and dedicated service, we have created the Fortis Healthcare international Patients Service Centre at New Delhi, India.
Various medical specialties offered to our International patients are:
← Cardiology ← Cardio Thoracic & Vascular Surgery ← Orthopaedics ← Orthopaedic Surgery (Total Hip/Knee
Replacements, Joint Replacements) ← Plastic Surgery ← Cosmetic Surgery ← Bariatric Surgery (Gastric By Pass Surgery, Gastric Banding etc) ← Gynaecology & Obstetrics ← General Sugery ← Minimal Invasive Surgery ← Neurology & Neuro Surgery ← Nephrology (Dialysis) ← Paediatrics & Paediatric Surgery ← Pulmonology ← Renal Sciences (Renal Transplantation) ← ENT ← Opthalmology (Eye) ← Psychiatry
For you, this means a menu of seamless services that will make your treatment and trip hassle-free, i.e. from greeting you at the airport, to your registration & discharge, and even organizing the ground handling of any post-treatment travel.
After all, taking care of guests is an ageless Indian tradition.
SPECIAL SERVICES(VALUE ADDED SERVICES)
59
Doctor care coordination Before and after Airport transfer Service.
Flight Arrangements & Extensions / Visa Assistance.
Coordination of the admissions process.
Cost estimates for anticipated treatment.
Booking of Hotel/Service Apartments.
Special dietary needs / religious arrangements.
Providing news & information of patient's relatives back home.
Remote Consultations via Telemedicine.
Remote Consultations via Telemedicine.
Financial Services.
MAX HOSPITAL
Overview - Max Healthcare - caring for you…for life
Max Healthcare is India's first truly integrated healthcare system, offering
60
three levels of clinical service (Primary, Secondary, Tertiary) within one system.
We believe in the concept of total patient care and deliver care by combining medical and service excellence.
Max Healthcare is committed to quality care that not only addresses the illness but also concentrates on the overall wellness of the patients
Salient Features
A team of highly qualified and trained doctors, nurses and patient care personnel to provide the highest standards of care
Latest medical equipment and hospital information system Medical collaboration with Singapore General Hospital in areas of
medical practices, research and training Over 400 leading doctors, 280 corporate clients and a patient base in
excess of 5,80,000 Clean and comfortable facilities at all locations Fully computerised health records 24 hour- Chemist, Ambulance, Patient Diagnostic and Emergency
Services Regular educational and health camps to help educate patients on
various health issues, so that they make informed choices Max Happy Family Plan- Annual Health Plans covering domiciliary
medical needs A complete preventive healthcare programme - MAX 360° 24 Hour Emergency
Comprehensive Healthcare System
Max Healthcare model visualizes setting up of a world-class healthcare model offering the best medical assistance delivered seamlessly through state-of-the-art medical facilities.
61
NO SPECIAL SERVICES FOR INTERNATIONAL PATIENTS, ALL THE PATIENTS ARE SAME FOR THEM.
ESCORTS
Welcome to the comforting world of Escorts Heart Institute and Research Centre, where the medical treatment is truly world-class and our approach towards our patient is warm and sensitive. We Assure, that you are in trusted hands and your journey, will be a pleasant one.
Escorts Heart Institute & Research Centre (EHIRC), was born to bring to India the best cardiac care and systems, training of cardiac surgeons and cardiologists and to conduct research as per International standards. It has completed 20 years of excellence in providing highest standards of cardiac care in India. .
Centres of Excellence
Cardiac Bypass Surgery Minimally Invasive Surgery (Robotics) Interventional Cardiology Non-invasive Cardiology Pediatric Cardiology
Medical Highlights
20 years of Cardiac Care
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Hospital has 332 Beds, 9 Operation Theatres, 5 Cath Labs, 3 Heart Command Centres, 2 Heart Stations
Done Over 114,700 Angiographies Over 27,000 Angioplasties Completed Over 65,000 Cardiac Surgical Procedures Success rate of Cardiac Procedures is 99.6% Infection Rate of less than 0.3%
The Infrastructure of Excellence
Escorts Heart Institute is equipped with modern facilities, equipment and systems like:
Operation Theatres (OTs) with Laminar air flow that eliminates the chances of infection
Intensive Care Units (ICUs), under the charge of critical care specialist that has a ratio of one nurse for every ICU patient
High-tech systems for Imaging, Radiology and Pathology Testing Sophisticated Information Technology systems at Escorts Hospital
enable better efficiency and greater patient convenience Convenient support facilities such as: ATMs, Cafeterias, Round the
clock Pharmacy
International Patient Care
Patient safety is our top priority, Escorts recognizes that international patients have special needs and requirements. Escorts offers seamless patient services of world-class quality. From the warmth of our greeting at the airport, to your registration and discharge, we strive to deliver unparallel services to aid you.
All services are provided to International patients through a single window assistance cell, from arrival till departure. The activities related to this important area of our business are:
1. Visa Assistance
Coordination and Liaising with Foreign Offices.
2. Medical Needs
63
Arranging meeting on priority with the concerned Consultant. Arranging any specific medical needs, while traveling to New Delhi. Smooth discharge procedure under single window. Medical certificates/reports. Follow up visits/tests/reports.
3. Lodging/Boarding Arrangements
Lodging the patient/attendant in EHIRC/Hotel/Guest House. Diet requirement as per patient needs. Regular supervision of all lodging facilities.
4. Information Needs
EHIRC Brochures/Information. Delhi City Map /City Guide. Providing news & information of patient to their relatives, back home.
5. Value Added Services
Dedicated Patient care coordinators to assist Patient/Attendant. Travel/ticketing arrangements for patients and relatives. Receive the patient from Airport - Car/Ambulance. Arranging sight seeing / shopping / prayer. Local travel needs for patient's relatives. Prepaid Cell phone Card. Interpreters. Internet. Comprehensive Health Check Ups. Foreign Exchange. All finance related matters under single window.
6. Our insurance partnerships
BUPA International AETNA CIGNA International SOS Vanbreda International GMC Services
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CHAPTER 5
ANALYSIS AND INTREPRETATION
As per the data collected from the four hospitals
GRAPH1
65
GRAPH 2
Apollo-3000Fortis-36Escorts-240Max hospital-1000Total international patients coming to India-4276
66
PREFFERED SURGERIES BY INTERNATIONAL TOURIST
40%
8%
15%
32%
5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
TYPES OF SURGERIES
PE
RC
EN
TA
GE
VA
LU
E
Heart surgery-
Neuro surgery-
Orthopedicsurgery-
Nephro surgeries-
Liver transplant-
Heart surgery- 40%
Neuro surgery- 8%
Orthopedic surgery-15
Nephro surgeries-32%
Liver transplant-5%
GRAPH 3
67
PROMOTIONAL ACTIVITIES DONE BY HOSPITALS TO ENHANCE MEDICAL TOURISM
Escorts Heart Institute & Research Centre Ltd,
ESTIMATES
* Excludes investment in bed capacity to avoid double count with investment in secondary/tertiary beds
13-20
7-9 0.5-0.70.5-0.7 0.5-1
22-30
Medical equipment could account for 20-30% of investment in Beds (Rs.20,000 to40,000 crore)
Investmentin secondary beds
Investmentin tertiary beds
Investmentin medical colleges*
Investmentin nursing schools
Investmentfor other health professionals(e.g., pharmacists,technicians,administrators)
Total investment required
(Source: CII-McKinsey & Company Report 2005)
Investment required to bridge the gap in next 10 years
68
INDRAPRASTHA APOLLO
ESCORTS HOSPITAL
FORTIS HOSPITAL
MAX HOSPITAL
Attending World Travel Marts and World Medical Fairs.
Tie ups with various agencies abroad involved in medical tourism. Participation in Health Expos in UK. Ad campaign for India.
Conduct CME(continuous Medical Education for doctors), Free health checkups for doctors, On campus patient education programmes,Ad campaign Dhakan on TV.
Tie up with most of the embassies ,free cardiac camps in various countries, CME, Nodal centers in UK,US etc. Hospitals in gulf countries, Tie ups with most of the insurance companies.
GRAPH 4
69
GRAPH 5
70
GRAPH 6
Beds Physicians Nurses
Per ’000 population, 2006*
Per ’000 population, 2006*
Per ’000 population, 2006*
1.5
1.5
4.3
7.4
India
Other low income countries (e.g., sub-Saharan Africa)
Middle income countries (e.g., China, Brazil Thailand, South Africa, Korea)
High income countries (e.g., US, Western Europe, Japan)
1.2***
0.5**
World average 3.3 1.5 3.3
0.9
1.6
1.9
7.5
Comparison - India Vs other countries
71
6.7
6.5
5.7
5.2
2.7
Korea
Brazil
Thailand
India
China
Per cent, 2006*
720
453
349
143
94
Korea
Brazil
Thailand
China
India
US$, PPP, 2006*
Healthcare spend as % of GDP Healthcare spend per capita
* Most recent data available has been used (2001-2006)
Comparison India Vs other countries
72
FINDINGS
After the analysis and interpretation of the data we can figure out the
following
Graph 1( Total international patients coming to India)
We can witness that majority of the international patient
Prefer Indraprastha Apollo at the first place followed by Max hospital,
Escorts and only a minority of them prefer Fortis
GRAPH2 (Preferred surgeries by international tourists)
It very clearly depicts that majority of the tourist consider India (Delhi)
as a destination for heart surgery followed by Nephro surgeries(kidney
related problems) then orthopedic, Neuro and only a fraction of them
come for kidney transplants.
GRAPH 3( Investment required to bridge the gap in next 10 years )
The graph clearly states that if proper investment will be made then India will be at the top level in the healthcare industry. The graph shows in what ratios the investment should be done like on mediacal equipment could account for 20-30% of investment in beds.
73
GRAPH 4 ( Cost advantage and list of various medical services)
It tells us about the various services offered under the umbrella of Indian
medical tourism and also the price comparison of dental treatments and
surgeries in India and US for eg getting a Glass Ceramic Crown fitted in
India would cost 35-40% less in India than US.
GRAPH 5 ( Comparison - India Vs other countries)
This graph clearly shows the comparison of India with the other low, middle
and high level income countries in terms of beds, physicians and nurses with
the relation of per thousand populations in year 2006.
GRAPH 6 ( Comparison - India Vs other countries)
This graph clearly shows the comparison of India with the other
countries in terms of healthcare spend as percent of GDP and healthcare
spends per capita respectively in year 2006.
74
CONCLUSION
Medical Tourism in Delhi and NCR as per the study conducted is
booming and can be witnessed by the huge number of International
tourist visiting this region. Delhi and NCR is one of the worlds most
preferred region of the world in the case of medical tourism due to the
low cost of treatment, no waiting time, approachability, tourists spots
in delhi and nearby cities and other value added services. As the
Indian economy of growing so worlds best hospitals are coming to
India to encash the opportunity.
Another relevant topic that has been covered in the study is the
performance of four hospitals in the region and it can be concluded
that indraprastha Apollo is the market leader in attracting the
maximum no of international patients because of the brand name
Apollo and its presence in various other countries. Apollo is followed
by Max which is considered as a five star hospital caters to patients
falling in the high income bracket followed by Escorts and Fortis.
Also the trends in the Indian Healthcare has been studied and it can be
concluded that the healthcare industry has successfully managed to
maintain the interest and attention of not only the Indian government,
but also the common man.
The top Indian hospitals such as Apollo, Escorts, Max, etc, are
investing immense time, effort, manpower and money in their R&D.
75
As a matter of fact, several new innovative products have been
launched in the Indian market and have been patented. The Indian
consumer has ready access to new innovations in the field of health
and medicine. The companies are constantly acquiring latest
technology either through partnerships or developing them
indigenously. The government is fully supporting the cause of state of
the art infrastructure by providing support in setting up new hospitals
and financing them.
RECOMMENDATION
All the hospitals in the region should accentuate on
promotional activities at the global level so as to enhance the
awareness of medical proficiencies in India. Other government
hospitals should also try to meet international standards. The
government should pass an act according to which the fee structure of
various medical colleges should be reduced so as to facilitate and
motivate lower and middle class students. The government should
also come up with various medical colleges in different parts of the
country. This will help India to cope up with the increasing demand
of medical tourism locally and internationally.
Create cost-effective facilities
76
To deliver quality healthcare to a greater number of people, providers
must create and operate more cost-effective facilities. Optimizing
parameters such as area per bed and building cost per square foot can
reduce the initial cost of building a tertiary facility. In addition, operating
costs can be reduced through better purchasing and supply chain
management, as well as good management of patient flows and
utilization of expensive facilities and manpower.
An active industry association can play an important role in the
development of the sector
To boost the overall growth and development of healthcare in India, the
sector needs a vibrant industry association. This need can be met by the
Indian Healthcare Federation (IHF), which will have to present a united
face to key stakeholders such as the government, insurers, policy
institutions and industry players.
To be effective, the IHF will need a full-time team of professionals on board.
There are three immediate priorities for the federation: driving the creation
and adoption of quality and accreditation standards for healthcare
infrastructure and delivery; working with insurers to accelerate the
penetration of health insurance; and collaborating wit the government on
policy issues. In addition, the federation should increase awareness about
industry-level issues among industry participants.
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CHAPTER 8
APPENDIX
BIBLIOGRAPHY
BOOKS
Author's last name, first name middle name; "Title of journal,” (year of
publication)
Davenport Karen, “Health Care Benefits”, (2007)
Daschle Tom, “Achieving Universal Health Coverage”, (2007)
Seshamani Meena, “Opportunity Costs and Opportunities Lost:
Businesses Speak Out About Health Care”, (2007)
CII and Mekinsey, “Healthcare In India – The Road Ahead”, (2006)
JOURNALS
Author's last name, first name middle name; "Title of journal,” issue
number: (year of publication)
Alvarez, David P.; “Connecting people to the promise of healtchare”,
No. 15 (2000)
78
Hautea, Dr. Randy A.; Krattiger, Dr. Anatole F. And Van Zanten, Ir.
Jasper E; “Healthcare costs comparisons”, No. 18 (2000)
WEBSITES
<URL>
http://en.wikipedia.org/wiki/Healthcare_in_India
http://www.nature.com/nm/journal/v9/n4/full/nm0403-377a.html
http://www.cbc.ca/news/background/healthcare/medicaltourism.html
http://timesofindia.indiatimes.com/More_options_for_health_insurance/articleshow/1982238.cms
http://www.who.int/mediacentre/factsheets/fs172/en/index.html
http://www.indiatogether.org/2007/jan/hlt-hltcare.htm
http://www.deloitte.com/dtt/whitepaper/0,1017,sid%253D34239%2526cid%253D71669,00.html
79
QUESTIONNAIRE
1) Name of the Hospital- ________________________________
2) Location- ____________________________________ ____________________________________ ____________________________________ ___________________________________
3) Person Concerned- __________________________________
4) Designation- ____________________________
5) No of Foreigners visiting their Hospital Every Year/ Month- ________
6) Medical Travelers Clusters Country Wise-a) ___________________________
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b) ___________________________c) ___________________________d) ___________________________e) ____________________________f) _____________________________
7) Surgeries or Treatments they specifically come for-
Heart Surgery- Kidney Transplant- Liver Transplant- Bone Marrow Transplant- Orthopedic Surgery- Face lift- Any other-
8) Duration of their stay in India? ________________
9) Various Packages offered by the hospital-
10) Promotional Activities done by the Hospital to enhance Medical Tourism-
81
11) Value added offerings to an international patient compared to an domestic patient.
__________________________________________________________12)Provisions for aftercare follow-ups ?
___________________________________________________________
13)Payment modes
THANK YOU
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