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Medical Tourism: The Perfect Cure

Emerging segments like health tourism are poised to give Indian tourism a much-welcome boost. Jyoti Koul analyses the impact of this new phenomenon

State-of-the-art hospitals: (L-R) Escorts Heart Institute & Research Centre and Rockland Hospital, New Delhi

John Doe is not feeling so good. The 54-year old, former London taxi driver is overweight from years of eating on the road and is paying the price literally. His check-up regime is eating into his savings, though his government's National Health Service (NHS) has footed most of the bills. An open heart surgery done in the near future will allow John Doe to enjoy his retirement. The only problem - he is way down on the waiting list, which can be as long as two years. It is double jeopardy, if he waits, he will not make it to retirement. If he does make it, the high procedure cost will eliminate most of his savings. In a global world, Doe looks elsewhere; where the same procedure is done at a fraction of the cost, where a holiday with wife in tow to recuperate is part of the package.

Moderately conservative figures indicate half a million people travel across the globe for health purposes. India, with its 5,000 years of medicine, has just begun to formally, claim its share. The true size of the iceberg is always out of sight. Two external agencies, McKinsey and Messe Berlin have painted very bright pictures of medical tourism in India in a short eight years into the future. According to a McKinsey report, "If medical tourism were to reach 25 per cent of revenues of the private up-market (business), Rs 5-10,000 crore will be added to the revenues of these players. The medical tourism market would then represent three-five per cent of the total delivery market."

Karl Wolfgang Menck, the industry analyst commissioned by Messe Berlin feels India can expect to earn US$ one billion in foreign exchange from medical tourism by 2012, when the various industry growth programmes take effect.

This growing industry however has an image problem. It is uncomfortable with the 'non-positive' image the term medical tourism involves. Preferred terminology ranges from health, wellness and even rejuvenation tourism. "Health is wealth here as it encompasses all aspects and services we want to provide," says Gour Kanjilal, regional director, Indiatourism, Western India. He is one of the most vocal proponents of the 'rejuvenation' lobby. However, the major question that arises is do we actually have the right product and marketability?

Myth And Reality

Across many forums, well-versed tourism and travel practitioners including senior journalists have questioned about the untapped potential of health tourism. But what exactly makes one mean by `health tourism'? Is 'health tourism' actually a tourism product? The answer can be a straight no. As a tourism expert puts it, "I wonder if an ill person or a patient can ever become a tourist. Tourism is not always about money but it definitely is about joy, peace and leisure. Imagine a person whose sole focus is on treatment or better health - would he hop from one place to another exploring and discovering a destination? Those who actually come to the country with health problems concentrate on that aspect alone. So, it might be a gainful proposition for the health care industry but certainly not for the tourism industry."

We are therefore confusing the inflow of patients with that of tourists. Simply put, patients are being classified as tourists. No doubt they are travellers but they do not contribute to the tourism industry. What we need to understand is that tourists bring foreign exchange into the country, while patients or medical tourists only bring it by way of airline tickets alone and hotels in rare cases. Usually, they do not go for sightseeing and therefore, do not indulge in 'typical tourist' activities (like shopping etc) that can boost foreign exchange earnings. Such traffic also looks for discounts on airline tariffs and even on Medicare. The people accompanying these patients prefer to stay in hospitals (no dual tariff), small time guesthouses, or with relatives where again foreign exchange doesn't change hand. So, is the percentage of foreign exchange that India earns through medical tourism is anybody's guess.

In fact, a huge population from the Middle-East comes to India for gynecological treatments and abortions (as abortions are considered illegal there). These kind of tourists always come under the guise of VFR (visiting friends and relatives) and pilgrim tourists. And leave the country after being treated.

Grey Areas

India with its rich cultural heritage, world-class health care professionals with proven track records and treatment costs at almost a sixth of that in the US and Europe is an attractive place for healthcare seekers. The country has tremendous potential in terms of well-qualified doctors, cheaper medical facilities and a few good hospitals. But these elements are not enough to generate volumes.

In reality, India has hardly any procedure in place, or for that matter made a conscious attempt to sell healthcare tourism. We are often confusing medical tourism with other aspects of holistic healing like ayurveda, spa, yoga, meditation and others. But these components really do not comprise the bracket of health and medical tourism. These are mainly alternatives to wellness concepts.

The major roadblock in marketing the product is the absence of a visa-on-arrival, which is a must for medical tourists keeping in mind that illness is something one can never 'plan'. But in India, there is no such special medical tourist visa facility available.

However, industry experts are not sure whether such facilities will be properly used. Citing an experience of Kerala said a tour operator, "When Kerala liberalised its skies and permitted charters to come, all the cobblers from London came and spoiled the place, forcing the state to cease services. So, in this case I am not very sure that it will be a healthy decision."

Further, capabilities of the doctors are not enough to sell the product. To actually market medical tourism, it has to be strongly backed by infrastructure - that is setting up of specialty hospitals, getting state-of-art health and medical equipment and setting up special wards for overseas patients (oops, health tourists) in general hospitals. Besides, we will have to cultivate the 'service' mindset and establish credibility.

Most importantly, India must put up a uniform accreditation system in place for hospitals in line with Joint Commission of Accreditation of Healthcare Organisations (JCAHO) of UK. After all, such international accreditation will assure patients of the quality of treatment provided.

Another spoke in the wheel is lack of insurance facilities. Most insurance companies do not cover medical treatment in a foreign country. Further, disciplines including ENT, cosmetic surgery, dentistry and infertility are not covered by health insurance anywhere in the world. "I think the Indian players should join hands with international insurance companies and tourism agencies to realise the full potential of health tourism," said Preetha Reddy, managing director, Apollo Hospitals.

Sunny Side Up

The Indraprastha Apollo Hospitals, New Delhi

When baby Noor Fatima, a two-and-a-half- year old Pakistani girl, successfully underwent an open-heart surgery in India, suddenly the potential of medical tourism was realised - thanks to the media. It is estimated that National Health Service, UK alone has over a million patients waiting for treatment, a potential market for India. Apollo in the last five years has attracted over 60,000 patients from over 55 countries. The Apollo group and other leading healthcare players have aggressively focussed their attention on foreign markets. The recent CII delegation and road shows to the UK and Middle-East have also generated a good response.

Delhi has witnessed an unprecedented growth in healthcare, as it has been successful in attracting medical tourists to its swanky and big hospitals. The government as well as private players are keenly assessing the potential and means to tap the same. The boom in state-of-the-art hospitals and well-qualified doctors in the national capital has attracted the patient-population from neighbouring SAARC countries, the Middle-East and Western parts of the world.

The catchphase is 'First World Treatment' at 'Third World Prices'. A CII-Mckinsey report last year, postulating the opportunities in health tourism, states that the medical tourism market in the country pegged a 30 per cent growth in 2000 and it has been growing at the rate of 15 per cent for the past five years.

"By 2012, if medical tourism were to reach 25 per cent of revenue of private up-market players, up to Rs 10,000 crore will be added to the revenues of these players," adds the report.

Hospital groups in Delhi have realised the potential of health/medical tourism but most of them are playing it by the ear. Among private players, Apollo has been a forerunner in health tourism; it has been a choice destination for patients from Southern 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.

In 2002, the number of patients who visited the hospital was 3001 and about 700 were hospitalised. Along with providing treatment, the stay of the foreign patients is taken care of by the hospital itself. The Apollo group has tied up with hotels in Delhi for this purpose. According to Dr Chabra, additional medical director, ISIC (Indian Spinal Indury Centre), ISIC is another destination for patients from neighbouring countries, Gulf and a few NRIs from the US.

Now, to attract more people, the emphasis is on vacation plus treatment and special packages have been planned on these lines. On the anvil is another plan to make patients and their relatives stay in the hospital complex with all luxuries of a hotel.

Dr Shakti Gupta of All India Institute of Medical Sciences, (AIIMS), stresses on the need to export health services. According to him, Indian doctors, medical services, and hospitals are at par with good hospitals in Europe and the US, so it is the right time to make the most of it.

AIIMS is a destination for patients from Nepal, Bangladesh, Bhutan, Myanmar, Mauritius, Malaysia and Pakistan. Besides regular patients from the Middle-east, an occasional patient from the US drops in. Patients from Pakistan, especially children with heart afflictions, have been regularly coming to the AIIMS heart centre.

According to Dr Gupta, AIIMS was made for the entire South East Asia populace and since it is a government institute, there are no plans to attract more foreigners.

The attractions at AIIMS include cardiac surgery, neurosurgery, cancer treatment and opthalmic procedures. "The services are charged on actuals and ours being a government institute, we are not angling to make money but are here to serve the people," stressed Dr Gupta.

The metro hospitals and Heart Insitute in Noida (NCR) also manages to attract patients from Nepal, Bhutan, Sri Lanka, Bangladesh and a few from Maldives and the Gulf region. Their motto is to extend excellent health services to people who travel here for health care and also for tourists, who need health care during their stay in India.

Indian hospitals getting recognition from international insurance companies will bring in more patients from abroad, says Anil K Maini, head, marketing, Health care buisness, Escorts Heart Institute and Research Centre, "The centre is fast emerging as a favourite destination for patients from neighbouring countries, Africa and CIS. About 1,000 patients from abroad are treated in Escorts on an annual basis."

Last Leaf

Only a few hospitals are making conscious efforts to increase the existing inflow of health tourists. But it has to be a concerted effort of various agencies besides the healthcare and tourism industry, who have to work in unison to reap the harvest. Further, there are hardly any packages for medical tourists. Travel agents and tour operators are yet to seriously consider this niche segment. They can tie up with hospitals to offer complete healthcare packages that would include recuperating in a resort in some scenic area. For instance, Great India Tours has come up with a complete package that includes consultations with doctors, hospital admission, accommodation for escorts and visit to some resort post-treatment. It is time others take the opportunity as well and make hay while the sun shines.

(With Inputs From Sapna Dogra)

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