International trade in health services
International trades in services
Cross-border
trade
Consumption
abroad
Commercial
presence
International trades in services
Cross-border
trade
Consumption
abroad
Commercial
presence
Indonesia is the biggest outbound global medical
tourism country source
Number of Indonesian patients seeking
treatment overseas
0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 2006 2012Annual spending on overseas medical
treatment
(in thousand dollar)Indonesia is a source of patients for its
next-door neighbours
•
Singapore
–
Indonesian market accounted for 56 per cent of total medical tourism
revenues in 2013
–
Revenue from Indonesian medical tourists in 2013 was S$463 million
(US$347.35 million), down 38 per cent from 2012
•
Malaysia
–
2011 data: >330,000 Indonesians sought treatment in Malaysia spending
over $150 million in direct medical costs.
–
2013 data: > 400,000 Indonesians sought treatment in Malaysia -> may be
worth close to $1 billion in 2013 for Malaysia and this figure is growing
Familiarity
Affordability
Perceived
quality
Availability
International patients visits*
0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,0002001 2002 2003 2004 2005 2006 2007 2008
Thailand Singapore Malaysia
Annual Medical Tourism Revenue 2006-2008*
0 200 400 600 800 1000 1200 1400 1600Malaysia Philippines Singapore Thailand
Revenue per international patient*
0 500 1000 1500 2000 2500Malaysia Thailand Singapore
Mi ll io n U S D
Popular Medical Tourism Services*
Services Malaysia Philippines Singapore Thailand
Cosmetic surgery Health screening Orthopedics Cardiology
Medical Travel costs from major US cities (US$)
Chicago Los Angeles Miami
Bogota, Colombia 316 590 299
San Jose, Costa Rica 423 559 333
New Delhi, India 1264 1390 1313
Amman, Jordan 1307 4503 1626
Seoul, Korea 1170 1301 1758
Monterrey, Mexico 737 642 521
Tel Aviv, Israel 1602 4229 5481
Bangkok, Thailand 3617 1369 3509
Kuala Lumpur, Malaysia 2603 1279 3804
Average cost of medical procedures (US$)*
Procedure US UK Malaysia Singapore Thai
Heart-by-pass graft surgery
113,000 13,921 9,000 20,000 13,000
Touristic healthcare services in demand
Lifestyle
Invasive
Diagnostic
Life enhancing
Dental work
General check up
Stress reducing
Plastic surgery
Bone density
testing
Skin improving
Eye surgery
Heart stress test
Sleep psychology Cancer treatment Lipid analysis
Physical therapy
Joint
Single private hospital room per night
0 200 400 600 800 1000 1200 1400Malaysia Thailand Singapore US
U
S
Dental tourism...
Favored destinations
Hungary Mexico Poland Thailand Turkey Spain OthersProcedures in demand
I ovative edical touris
Toothache
tourism
Women on
wave/sperm
ship
Dialysis at
sea
Fasting
tourism
Pregnancy
tourism
Detox
tourism
Medical tourism by patient profile
Rich patients
Poor patients
From developed
countries
Elective invasive,
Diagnostic, Lifestyle
Low-tech invasive,
Diagnostic, Border
medical care
From developing
countries
Elective invasive,
Diagnostic Lifestyle
Incidental medical tourists?
•
Short term stayers
–
Ordinary tourists
–
Business traveler
•
Long term stayers
–
Foreign students
–
Foreign workers
–
Retirees
Strategies and comparative advantages: Thailand
•
National strategy as Asian
Regional Med Hub, e.g. Center
for trans-sexual surgery
•
Large number of JCI accredited
hospitals
•
Highly skilled med professionals
•
Strong private participation
Strategies and comparative advantages: Singapore
•
Well-established medical tourism
destination
•
High technology equipment
•
Highly skilled med professionals
•
Large number of JCI accredited
hospitals
Strategies and comparative advantages: Malaysia
•
Strong goverment support
•
Competitive costs
•
Strategic alliances with foreign
partners
•
Easy entry for foreign patients
Targets in medical tourism
Country
Target
Singapore
•
One million patients by 2012
•
S$ 3 billion revenue (0.95% of its
GDP)
•
S$ 400 million from related industries
•
13,000 new jobs
Malaysia s Eco o ic Tra sfor atio Progra ETP
•
E
ar arked health care as o e of the cou try s Natio al Key
Economic Areas (NKEAs) deemed to have the potential to spur
growth
•
Medical tourism is intended to generate MYR 9.6 billion in revenue
and MYR 4.3 billion in gross national income and to require 5,300
more medical professionals by 2020
Common policies and strategies
(Johnston et al 2015)
•
Creation of visas specifically for medical tourists
•
Reduction or elimination of taxation on imported medical
equipment and supplies
•
Incentives and/or requirements for international hospital
Accreditation
8 success factors for medical tourism
Competitive price Tourist appeal Market economics Developed political and legal institutionsBarriers to medical tourism
Standards.
Accreditation and
credentialing
Insurance
Legal recourse
and protection of
International trades in services
Cross-border
trade
Consumption
abroad
Commercial
presence
