Hospital is the new destination
The tourist’s favorite new destination is the hospital. A look at the fastest growing segment of healthcare.
The medical tourism industry in Thailand is set to explode. According to the Health Ministry, in 2004 the country attracted 600,000 medical tourists, who generated 20 billion baht in revenue. In 2006, expectations are much higher. The sector is expected to grow by a staggering 66 percent, with approximately a million foreigners traveling to Thailand for medical treatment and health services, for a projected revenue of 27.5 billion baht.
Thailand isn't the only country in the region pushing for medical tourism, and the competition is becoming fierce. According to a recent report issued by Singapore-based air ticketing firm Abacus International, India, whose medical tourism business is growing at 30 percent a year, currently draws about 150,000 visitors annually. It is forecast to generate at least US$2.2 billion for India by 2012.
The report stated that Malaysia, which welcomed 100,000 patients in the first half of 2005, expects its medical tourism receipts to reach $590 million in five years. As a result, Asia’s medical tourism industry could generate over US$4.4 billion a year by 2012, with India, Thailand, Singapore, Malaysia and South Korea the top destinations.
And it doesn't stop there. Everyone wants a slice of the cake. Countries around the world, like Cuba, South Africa, Jordan and Hungary, are jumping on the bandwagon, eager to break into the market, and new countries are added to the list every year.
For now, Thailand has a head start. To begin, the technology, standards of care and facilities in Thailand's private hospitals are already on par with industrialized countries and offer a safe alternative to procedures performed in the patient's home country.
For example, BNH Hospital boasts the country’s only spine center and is one of the select few in Asia to perform Total Artificial Disc Replacement surgery, a procedure that was FDA approved in the US in 2004. The hospital is now beginning to conduct seminars to transfer its technology to other countries in the region.
At Bumrungrad, 50 percent of the 700 physicians and dentists are internationally trained and certified. The hospital is equipped to cater to foreign clients in terms of human resources, inpatient capacities and outpatient facilities and centers.
“Many of our Asian patients come from Vietnam, Bangladesh and Cambodia because they cannot find a western-quality hospital at home. They’re usually seeking high-end specialty care like paediatric care, cancer treatment, and heart and orthopaedic surgery,” says Ruben Toral, Bumrungrad’s group marketing director.
Having recently undergone a serious medical procedure in Bangkok, my experience would confirm the high standards of medical care in the country. I was impressed not only by the credentials of the hospital and the skills of my surgeon, but also by the quality of the nursing staff, their attention to detail and impeccable service.
An increasing number of people from all over the world are combining medical, dental and surgical care with a trip overseas. A combination of factors make Thailand a top destination for foreigners – high-quality healthcare, access and affordability.
Medical visitors fall into two categories – the tourist who comes predominantly for leisure and includes a check-up or a simple procedure, like laser sight correction (LASIK) or teeth whitening, during his holiday, and the tourist whose destination is the hospital.
In many western countries, like Canada, the United States and Britain, it can take a patient weeks to get an appointment with a specialist, and many more before undergoing surgery. In Canada, for instance, the waiting period for hip replacement can be a year, sometimes longer.
Although this isn’t a concern for minor ailments, it can mean life and death to patients suffering from life-threatening illnesses. Left with no other option, these patients end up often seeking treatment abroad.
Today, with the ease and affordability of international travel, patients are defecting from their home countries and heading to Thailand where access is immediate. Whether it’s a check-up, an MRI, cosmetic enhancement or bypass surgery, the waiting queues for an appointment and a procedure are non-existent; a patient literally steps off the plane into the operating room.
Although those who come in for a major surgical procedure will most likely be unable to combine medicine with tourism, recovering in a country known for its hospitality, good food and sunny weather is clearly a psychological add-on, and can even make the experience a positive one.
And while people traditionally think of meditourism as liposuction followed by a few days on the beach, it’s really more about the care than the vacation. And for many medical tourists, the real attraction is price. Because labor and administrative costs are much lower in Thailand than in western countries, hospitals can offer treatments at a fraction of the price of industrialized nations, where medical costs can be prohibitive.
“Last year, of the 400,000 international patients who came to Bumrungrad for treatment, 70,000 were from the Emirates, where the cost of healthcare is high. They come to Thailand for everything from a check-up to bone marrow transplant. We’re seeing an increasing number of patients from this region since 9/11. Before, they would traditionally go to the U.S. for treatment but they are now shifting their attention to the East,” explains Ruben Toral.
Because many Americans are underinsured or uninsured, they’re also seeking foreign healthcare options. For procedures like neurosurgery or orthopaedic surgery, they can end up paying one tenth the price they would at home, including airfare.
Thailand’s high standard of technology is attracting many overseas patients.
Many Australians also come to Thailand, usually for plastic surgery, as the procedures cost half what it would back home. A knee replacement, for instance, with six days of physical therapy, costs about one-fifth of what it would in the US, and LASIK eye surgery worth $3,700 in the U.S. is available for at most half the cost depending on the clinic.
“Half the patients I treat with Artificial Disc Replacement come from overseas, and especially from North America. In the US, the disc implant costs about $11,000, and in Europe at least €5000 [US$6,158], not counting hospital fees and other associated costs. Here, it’s about $4,000,” says Dr. Wicharn Yingsakmongol, orthopaedic surgeon at BNH.
With an increased demand and countries realizing the potential of this relatively untapped yet juicy market, the medical tourism industry is expected to experience a boom in the next few years. At Bumrungrad, medical tourism is the fastest-growing segment in healthcare with 52-53 percent of its revenue derived from international patients coming in for a medical procedure. The Health Ministry forecasts that by 2008 the revenue generated through medical tourism in Thailand will reach close to 40 billion baht.
This potential is not only creating new opportunities for tourism agents and hospitals, it’s also changing the face of the healthcare industry in two respects. In terms of overall healthcare strategy, with the globalization of services, the next few years are set to witness an increase in medical outsourcing which, by offering surgical services for less, will be profitable to both insurance companies and the patient.
This does, however, raise some tricky issues, first and foremost liability. If a patient is sent abroad for a medical procedure and something goes wrong, how does one handle legal responsibility and obligations? International medical coordination, especially medical referral and continuity of care, will also take time and goodwill to implement.
Despite these obstacles, in today’s world this strategy makes sense. In western countries, where the cost of healthcare is rising, the public healthcare system is overburdened and the population is aging, it is more cost-effective for an insurance company to pay for the travel and medical expenses of its clients in Thailand than at home.
An example of how the lure of meditourists can drive technology, medicine and business is Thailand’s place on the cutting-edge of using stem cells to cure heart disease. Several high-profile cases have shown promise here as Thailand’s private hospitals offer this treatment. However, there have been no official reports about the possible consequences of this new technology, but now one is in the works.
A trial will be conducted this year on 40 patients with heart symptoms by the Medical Sciences Department, Mahidol University and the Cardiac Institute of Thailand.
Finally, in terms of combining medicine and tourism, the industry is already shifting toward offering seamless services, where patients can choose an “all in one package," like golf and hip and knee replacements. While this isn’t a problem for light and well-defined procedures, like cosmetic dentistry and LASIK, a “heart package” sold by a travel agent is nonsensical, highlighting the sometimes frivolous, even cavalier attitude of the global players involved in medical tourism.
Medicine is not to be taken lightly. At the end of the day, for patients who are awaiting major treatment, it's not about the glossy halls and the food courts, it's about the quality of care and its outcome.
The medical tourism industry in Thailand is set to explode. According to the Health Ministry, in 2004 the country attracted 600,000 medical tourists, who generated 20 billion baht in revenue. In 2006, expectations are much higher. The sector is expected to grow by a staggering 66 percent, with approximately a million foreigners traveling to Thailand for medical treatment and health services, for a projected revenue of 27.5 billion baht.
Thailand isn't the only country in the region pushing for medical tourism, and the competition is becoming fierce. According to a recent report issued by Singapore-based air ticketing firm Abacus International, India, whose medical tourism business is growing at 30 percent a year, currently draws about 150,000 visitors annually. It is forecast to generate at least US$2.2 billion for India by 2012.
The report stated that Malaysia, which welcomed 100,000 patients in the first half of 2005, expects its medical tourism receipts to reach $590 million in five years. As a result, Asia’s medical tourism industry could generate over US$4.4 billion a year by 2012, with India, Thailand, Singapore, Malaysia and South Korea the top destinations.
And it doesn't stop there. Everyone wants a slice of the cake. Countries around the world, like Cuba, South Africa, Jordan and Hungary, are jumping on the bandwagon, eager to break into the market, and new countries are added to the list every year.
For now, Thailand has a head start. To begin, the technology, standards of care and facilities in Thailand's private hospitals are already on par with industrialized countries and offer a safe alternative to procedures performed in the patient's home country.
For example, BNH Hospital boasts the country’s only spine center and is one of the select few in Asia to perform Total Artificial Disc Replacement surgery, a procedure that was FDA approved in the US in 2004. The hospital is now beginning to conduct seminars to transfer its technology to other countries in the region.
At Bumrungrad, 50 percent of the 700 physicians and dentists are internationally trained and certified. The hospital is equipped to cater to foreign clients in terms of human resources, inpatient capacities and outpatient facilities and centers.
“Many of our Asian patients come from Vietnam, Bangladesh and Cambodia because they cannot find a western-quality hospital at home. They’re usually seeking high-end specialty care like paediatric care, cancer treatment, and heart and orthopaedic surgery,” says Ruben Toral, Bumrungrad’s group marketing director.
Having recently undergone a serious medical procedure in Bangkok, my experience would confirm the high standards of medical care in the country. I was impressed not only by the credentials of the hospital and the skills of my surgeon, but also by the quality of the nursing staff, their attention to detail and impeccable service.
An increasing number of people from all over the world are combining medical, dental and surgical care with a trip overseas. A combination of factors make Thailand a top destination for foreigners – high-quality healthcare, access and affordability.
Medical visitors fall into two categories – the tourist who comes predominantly for leisure and includes a check-up or a simple procedure, like laser sight correction (LASIK) or teeth whitening, during his holiday, and the tourist whose destination is the hospital.
In many western countries, like Canada, the United States and Britain, it can take a patient weeks to get an appointment with a specialist, and many more before undergoing surgery. In Canada, for instance, the waiting period for hip replacement can be a year, sometimes longer.
Although this isn’t a concern for minor ailments, it can mean life and death to patients suffering from life-threatening illnesses. Left with no other option, these patients end up often seeking treatment abroad.
Today, with the ease and affordability of international travel, patients are defecting from their home countries and heading to Thailand where access is immediate. Whether it’s a check-up, an MRI, cosmetic enhancement or bypass surgery, the waiting queues for an appointment and a procedure are non-existent; a patient literally steps off the plane into the operating room.
Although those who come in for a major surgical procedure will most likely be unable to combine medicine with tourism, recovering in a country known for its hospitality, good food and sunny weather is clearly a psychological add-on, and can even make the experience a positive one.
And while people traditionally think of meditourism as liposuction followed by a few days on the beach, it’s really more about the care than the vacation. And for many medical tourists, the real attraction is price. Because labor and administrative costs are much lower in Thailand than in western countries, hospitals can offer treatments at a fraction of the price of industrialized nations, where medical costs can be prohibitive.
“Last year, of the 400,000 international patients who came to Bumrungrad for treatment, 70,000 were from the Emirates, where the cost of healthcare is high. They come to Thailand for everything from a check-up to bone marrow transplant. We’re seeing an increasing number of patients from this region since 9/11. Before, they would traditionally go to the U.S. for treatment but they are now shifting their attention to the East,” explains Ruben Toral.
Because many Americans are underinsured or uninsured, they’re also seeking foreign healthcare options. For procedures like neurosurgery or orthopaedic surgery, they can end up paying one tenth the price they would at home, including airfare.
Thailand’s high standard of technology is attracting many overseas patients.
Many Australians also come to Thailand, usually for plastic surgery, as the procedures cost half what it would back home. A knee replacement, for instance, with six days of physical therapy, costs about one-fifth of what it would in the US, and LASIK eye surgery worth $3,700 in the U.S. is available for at most half the cost depending on the clinic.
“Half the patients I treat with Artificial Disc Replacement come from overseas, and especially from North America. In the US, the disc implant costs about $11,000, and in Europe at least €5000 [US$6,158], not counting hospital fees and other associated costs. Here, it’s about $4,000,” says Dr. Wicharn Yingsakmongol, orthopaedic surgeon at BNH.
With an increased demand and countries realizing the potential of this relatively untapped yet juicy market, the medical tourism industry is expected to experience a boom in the next few years. At Bumrungrad, medical tourism is the fastest-growing segment in healthcare with 52-53 percent of its revenue derived from international patients coming in for a medical procedure. The Health Ministry forecasts that by 2008 the revenue generated through medical tourism in Thailand will reach close to 40 billion baht.
This potential is not only creating new opportunities for tourism agents and hospitals, it’s also changing the face of the healthcare industry in two respects. In terms of overall healthcare strategy, with the globalization of services, the next few years are set to witness an increase in medical outsourcing which, by offering surgical services for less, will be profitable to both insurance companies and the patient.
This does, however, raise some tricky issues, first and foremost liability. If a patient is sent abroad for a medical procedure and something goes wrong, how does one handle legal responsibility and obligations? International medical coordination, especially medical referral and continuity of care, will also take time and goodwill to implement.
Despite these obstacles, in today’s world this strategy makes sense. In western countries, where the cost of healthcare is rising, the public healthcare system is overburdened and the population is aging, it is more cost-effective for an insurance company to pay for the travel and medical expenses of its clients in Thailand than at home.
An example of how the lure of meditourists can drive technology, medicine and business is Thailand’s place on the cutting-edge of using stem cells to cure heart disease. Several high-profile cases have shown promise here as Thailand’s private hospitals offer this treatment. However, there have been no official reports about the possible consequences of this new technology, but now one is in the works.
A trial will be conducted this year on 40 patients with heart symptoms by the Medical Sciences Department, Mahidol University and the Cardiac Institute of Thailand.
Finally, in terms of combining medicine and tourism, the industry is already shifting toward offering seamless services, where patients can choose an “all in one package," like golf and hip and knee replacements. While this isn’t a problem for light and well-defined procedures, like cosmetic dentistry and LASIK, a “heart package” sold by a travel agent is nonsensical, highlighting the sometimes frivolous, even cavalier attitude of the global players involved in medical tourism.
Medicine is not to be taken lightly. At the end of the day, for patients who are awaiting major treatment, it's not about the glossy halls and the food courts, it's about the quality of care and its outcome.
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