Medical tourism: Right medicine, wrong dosage

Neeti Mehra - Mumbai

2006-’07

In this Union Budget, the Indian healthcare industry was hoping for a major fillip to strengthen its foothold in the niche field of medical tourism. According to a report prepared by McKinsey and the Confederation of Indian Industry (CII), medical tourism in India could become a US $1 billion business by 2012. The leading players were hoping for critical issues to be addressed in this budget, to enable upgrading the standard of facilities offered by Indian healthcare providers to international patients at affordable prices and incentives to put them on par with the leading medical destinations in Asia.

But the leading players feel that though the budget is a step in the right direction, it just hasn't done enough for the segment to reach its potential. The logical conclusion of both the tourism and the healthcare industry receiving increased allocations is that medical tourism will receive an impetus as a result of a trickle down effect, with the strengthening of infrastructure in both the sectors. Speaking to Express TravelWorld, Dr Prathap Reddy, chairman, Apollo Hospitals group says, "All the Asian countries are gearing towards medical tourism with ample support from their respective governments. India has the greatest potential to become the global healthcare destination. I think this needs facilitation by the Finance Minister, and hasn't been addressed in this budget. Further, there is no specific focus in the budget to increase healthcare access for people or promote growth in healthcare sector. The government is very clear that there should be continued GDP growth to reach the double-digit figure. Health could have fulfilled the country's vision by not only making a significant contribution to GDP, but more importantly, by significantly impacting the employment potential."

Vishal Bali, CEO, Wockhardt Hospitals group said, "Until the healthcare segment gets industry status, medical tourism will continue to be an off-shoot, and will be dependent on the development of tourism and the healthcare industries. The budget in terms of healthcare reforms per se is very positive, and the focus on tourism, though will not directly impact medical tourism, but the ripple effect will come into force." Wockhardt Hospitals across India get approximately 800 international visitors for healthcare treatment.

The other concessions announced will positively impact the manufacture and import of bulk vital drugs, and equipment imports. Apart from this, the Finance Minister also mentioned the adoption of cluster development to promote the cultivation of medicinal plants and will institute an empowered group of ministers who will lay down the policy for it and oversee the implementation. Additionally, FBT computation will exclude the expenses on free samples of medicines and of medical equipment distributed to doctors, in addition to a reduction on travel for medical training.

Bali adds, "The custom duty cuts will help in cost-effective technology upgradation, which will enable hospitals to provide world-class facilities. The emphasis on objective setting for this segment for instance, in terms of polio eradication and the focus on health insurance send out the right signals." The industry has welcomed the reduction of duty on cancer and anti-AIDS drugs, though they feel a more holistic approach needs to be adopted.