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Medical Tourism

Medical Tourism. Healthcare Revenue-cycle Management - Dubai Tuesday - 9 th May 2006. Assessing New Opportunities. Prof. Dr. Dr.h.c. Fried Oelschlegel Vice President SGHGroup International Projects. Points Of Discussion.

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Medical Tourism

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  1. Medical Tourism Healthcare Revenue-cycle Management - Dubai Tuesday - 9th May 2006 Assessing New Opportunities Prof. Dr. Dr.h.c. Fried Oelschlegel Vice President SGHGroup International Projects

  2. Points Of Discussion • A look on the Market – Dubai Health Care City. • Medical Tourism. • Strategies to attract Foreign and Local Patients. • Conclusion and Recommendations. F.F.O. Health Care Tourism 09.05.06

  3. Speculating the Road for Health Care Services UAE • Fast developing Country; attractive centre for international business & tourism • Strategic Location at the Center of the Middle-East Region. • Easy to handle procedures & regulations facilitation from the Government. • Access to Low-Cost Labor Market. • Center of Attraction for Regional and Foreign Investments. F.F.O. Health Care Tourism 09.05.06

  4. Population ( Nationals )Statistics F.F.O. Health Care Tourism 09.05.06

  5. Population Classification 8% 50% 19% 23% F.F.O. Health Care Tourism 09.05.06

  6. Dubai Health Care City F.F.O. Health Care Tourism 09.05.06

  7. Dubai Health Care City F.F.O. Health Care Tourism 09.05.06

  8. Dubai Health Care City F.F.O. Health Care Tourism 09.05.06

  9. Dubai Health Care City F.F.O. Health Care Tourism 09.05.06

  10. ??? How many Hospitals more ??? Al Zahra Medical Centre (Polyclinic) 17 Bed Emirates Hospital 50 Bed Safa Specialty Hospital Bumrungrad, Jebal Ali (Exact Location not known) 50Bed Neuro Spinal Hospital 100 Bed Al Zara Specialty Hospitals 20 Bed Cedars hospital 120 Bed Welcare Ambulatory 250 Bed SGH Specialty Clinics/ Small Hospitals F.F.O. Health Care Tourism 09.05.06

  11. Hospital Beds Future Expansion +86% + 30% F.F.O. Health Care Tourism 09.05.06

  12. Hospitals Beds Occupancy Rates(Average) F.F.O. Health Care Tourism 09.05.06

  13. UAE Healthcare Providers Where to???  It is very obvious that the rate of developing new hospitals is uncoupled by an equal growth for the population figures in the U.A.E. • Creating a state of high supply of Medical Health Care Services, met by a low volume of national demands. • Consequences are inevitable: Scenario could be • Price war between Hospitals. • strong competition on a market for a limited amount of patients – patient acquisition !!! • decreasing rates of Hospitals-Bed Occupancy. • Low Profit Margins, if any. • Negligible return on Investments. • Unsatisfied Medical Team.  EMPTY HOSPITALS (GHOST HOSPITALS). F.F.O. Health Care Tourism 09.05.06

  14. How to change the future for these Hospitals??? Full Occupancy Hospital Empty Hospital MEDICAL TOURISM F.F.O. Health Care Tourism 09.05.06

  15. Medical Tourism Definition: 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. WHOdefines it as: • Medical care • Sickness & well-being • Rehabilitation & recuperation F.F.O. Health Care Tourism 09.05.06

  16. Countries Promoting Medical Tourism Example-South Africa specializes in medical safaris  Visit the country for a safari, with a stopover for Plastic Surgery, a Nose Job, and a chance to see lions and elephants F.F.O. Health Care Tourism 09.05.06

  17. Medical Tourism • Medical Tourism is growing rapidly and turning out to be an immense business opportunity for nations that are positioning themselves correctly. • Last year ( 2005), just five countries in our global region – Thailand, Malaysia, Jordan, Singapore and India- pulled in over 1.3 million medical travelers and earned over $1billion (in treatment costs alone). • Medical travel spends are growing at 20% plus year-on-year. • Around the world, Hong Kong, Lithuania and South Africa are emerging as big medical/healthcare destinations. And a dozen other nations plan to make themselves attractive healthcare destinations.  F.F.O. Health Care Tourism 09.05.06

  18. Medical Tourism Medical Travelers Clusters   • The first is made up of the Americans • The second major group - the British • The third big group of medical travelers comes from the Middle East • The last group of medical travelers is diversified. F.F.O. Health Care Tourism 09.05.06

  19. Medical Tourism Why Medical Travelers Clusters seek Treatments Abroad ? SOUTH ASIA , AFRICA, MIDDLE EAST • No advance care available e.g. Afghanistan , Nepal and Bangladesh etc. • Limited specialized care. WEST • Long waiting list’s for standard performances – UK. • Insurance unaffordable leading to semi insured and uninsured population; very high prices – US. • Private hospitals very expensive . F.F.O. Health Care Tourism 09.05.06

  20. Tourist Arrivals Forecast F.F.O. Health Care Tourism 09.05.06

  21. Medical Tourism - India Medical tourism in India could become a multi-billion business by 2012. Investors predict that: "By 2012, if medical tourism were to reach 25 per cent of revenues of private up-market players, up to Rs 10,000 core will be added to the revenues". 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. F.F.O. Health Care Tourism 09.05.06

  22. Benefits of Medical Tourism ( 1 ) Tangible: • Source of additional national income through wealth transfer from foreign countries . • Cost advantages in tariff over the developed countries. • Creating attractive working places • Improve information sharing. • Increase efficiency of patient care process, reducing / cutting of waiting lists. • Strategic alliances with business partners within and outside the country. • Technology and knowledge transfer. • Better logistics performances both in internal and external. F.F.O. Health Care Tourism 09.05.06

  23. Benefits of Medical Tourism ( 2 ) • Better utilization of Infrastructure and skilled manpower. • Opportunity for development in infrastructure in Health, Tourism and Travel • Connectivity & synergy effects with air, road, rail and information and communication industries. • Clustering of medical Travelers – new business fields. • Health opportunities for foreign patients may lead to better health care standards for Nationals. • Scope for Research and Development to offer comprehensive medical solutions.  F.F.O. Health Care Tourism 09.05.06

  24. Benefits of Medical Tourism ( 3 ) Intangible: • International acceptance and reputation for the country as a global healthcare provider • Social and cross cultural experience • International customer relations • Global Marketing and Medical Trade relations • Brand image of nation as world class healthcare destination – attractive investment place !!! • Patient satisfaction & Competitive advantage • Strategic Public - Private Partnerships F.F.O. Health Care Tourism 09.05.06

  25. Prerequisites for successful Medical Tourism • Competitive pricing( will be the most important bench-mark in future ! ) • High quality of services(medical & non-medical; JCIAHO certificated ) • Proximity to large international markets( traffic infrastructure ) • High qualified medical & managerial staff( the severe shortage of healthcare professionals ) • concerted and integrated promotion and marketing( synergy effects between different business fields ) • Improvement of immigration procedures • Liberalize and coordinate advertisement of healthcare facilities F.F.O. Health Care Tourism 09.05.06

  26. Medical Tourism Cluster Medical Tourism Supplier Industries Supplier Industries Hospitals, Hotels, Restaurants, Airports, Local Transportation, Shopping Malls, etc Cluster Foundations Policy/ Sustainable Human Physical Promotion/ Regulatory Environment Image Framework Resources Infrastructure F.F.O. Health Care Tourism 09.05.06

  27. Medical Tourism Perceptions & Worries Negative Perceptions Hygiene/Unsanitary Medical Insurance Instability Pollution Terrorism Prone Inadequate Cover Backward & Bureaucratic Communal Unrest Underdeveloped Insurance Frauds Connectivity Accreditation No Global Players No Flights!! No Uniformity Overseas Companies Refuse Reimbursements Bad Roads ISO, CRISIL, ICRA Backward WEST: JCIAHO Foreign Patient’s Point of View F.F.O. Health Care Tourism 09.05.06

  28. - US delay in granting Visas Consequences: • Number of Visas issued for medical reason plummeted from 56.912 in 2001 to 14.403 in 2002. • Number of patients treated at Boston-area Hospitals declined from 459 in 2001 to 163 in 2005. • Saudi Arabia shut down a program that brought patients to the US, and is will sharply scale two similar programs. • Saudi patients are traveling to other countries for treatment (e.g. Germany, Britain, and India). • US Medical Institutes are scrambling to open Hospitals in the Middle East (e.g. Harvard Medical Center at Dubai). F.F.O. Health Care Tourism 09.05.06

  29. Strategies to attract foreign and local Patients • Dubai is already seen as a major tourist destination, attracting tourists from around the globe. In 2003, nearly 5 million tourists visited Dubai. • Dubai has a long term objective to attract 15 million visitors by 2010; their presence will create substantial demand for healthcare and new medical facilities. F.F.O. Health Care Tourism 09.05.06

  30. Strategies to attract foreign and local Patients • A world-class hospitality infrastructure, already in place in Dubai, will lend support for smooth development of medical tourism. • WTO forecasts the Medical Tourism market in Dubai to be close to one billion dollars by 2012. F.F.O. Health Care Tourism 09.05.06

  31. Strategies to attract foreign and local Patients • Maximising the Value Proposition. • Establishing a Facility Centre in a foreign Country. • Pairing up with a Service Provider to enhance your offering. • Launching an aggressive Marketing Campaign to capture the market. • Creating a seamless Single-Window Facility for a maximum patient experience. F.F.O. Health Care Tourism 09.05.06

  32. Maximising the Value Proposition ( 1 ) DEFINITION: Ways a Business (Hospital) proposes to use its resources to deliver superior value to its customers (Patients). Value Proposition Maximization Formula + Value Proposition Maximization POTENTIAL assessment IMPROVEMENTS Implementation GOVERNMENT & INDUSTRY HAND-HOLDING: A MUST !!! F.F.O. Health Care Tourism 09.05.06

  33. Maximising the Value Proposition ( 2 ) + IMPROVEMENTS POTENTIAL F.F.O. Health Care Tourism 09.05.06

  34. Maximising the Value Proposition ( 3 ) • High quality medical services to low costs - price difference between low cost countries and the developed countries by comparable performances & quality till 75 % F.F.O. Health Care Tourism 09.05.06

  35. Maximising the Value Proposition ( 4 ) F.F.O. Health Care Tourism 09.05.06

  36. Establishing a Facility Centre in a Foreign Country (1) National Healthcare Group Singapore – UAE(Case Study) The National Healthcare Group provides comprehensive primary to tertiary public healthcare services through a networkoffour Hospitals, one National Centre, nine Polyclinics, three Specialty Institutes and five Business Divisions. NHG – Institutes: Alexandra Hospital, National University Hospital, Tan Tock Seng Hospital, Woodbridge Hospital, National Skin Centre, Johns Hopkins Singapore International Medical Centre. F.F.O. Health Care Tourism 09.05.06

  37. Establishing a Facility Centre in a Foreign Country (2) National Healthcare Group Singapore – UAE(Case Study) NHG – GULF: • Incorporated in 2004 at Dubai & Abu Dhabi. • NHG Gulf makes it easy for patients in the Gulf Cooperation Council countries to access NHG Singapore's world-class healthcare services. • Provide assistance with: • Information on the specialized care available in NHG Hospitals• Medical Referrals• Scheduling of Appointments• Direct Admission Arrangements• Billing and Financial Enquiries• Transportation & Accommodation in Singapore. F.F.O. Health Care Tourism 09.05.06

  38. Pairing up with a Service Provider to enhance your offering (Case Study). unich The AirportClinic M opened at the Munich International Airport in November 2002, and is the realization of an innovative "full service concept" for patients from Germany and abroad. The Well-known medical specialists, state-of-the-art medical technology and a comfortable interior design guarantee the best individual medical care with the highest level of quality available. The AirportClinic M offers a comprehensive diagnostic and therapeutic concept for inpatient and outpatient care. F.F.O. Health Care Tourism 09.05.06

  39. Pairing up with a Service Provider to enhance your offering (Case Study). • The AirportClinic M offers: • Inpatient and outpatient treatment (as • a general rule, with a stay lasting up to • three nights). • Ambulatory treatment in the • AirportClinic M can be combined with • a comfortable overnight stay at the • linked first-class hotel. • For every patient tailored service to meet the patient's needs, from the time they arrive in Munich until they return home. F.F.O. Health Care Tourism 09.05.06

  40. Launching an aggressive Marketing Campaign to capture the market. (1) The Good Old 4P’s of the Marketing Mix Price Promotion Place Product F.F.O. Health Care Tourism 09.05.06

  41. Launching an aggressive Marketing Campaign to capture the market. (2) PRODUCT PRICE Rule: Offering a better Service Standards, while making it available at a lower coast, than the patients Homeland Service prices. Actions: PRICE PRODUCT F.F.O. Health Care Tourism 09.05.06

  42. Launching an aggressive Marketing Campaign to capture the market. (3) PROMOTION PLACE Rule: Offering Tailored Service Specialties, that cover deficiencies of Traveler’s Homeland Service, at an attractive tourism package. Actions: PROMOTION PLACE F.F.O. Health Care Tourism 09.05.06

  43. Creating a seamless Single-Window Facility for a maximum patient experience. (1) Definition: The bringing together of Medical tourism services, or information about in order to reduce the time and effort patients must expend to find and obtain the service they need. • Purpose: • Improve accessibility through “SW Gateways”. • Improve convenience through “One Stop Shopping”. • Overcome Countries boundaries by providing • “Seamless Services”. F.F.O. Health Care Tourism 09.05.06

  44. Creating a seamless Single-Window Facility for a maximum patient experience. (2) • Single Window “Gateways”: • SWs should provide a “gateway” to Medical Tourism • services through government information and referral • services such as Call-centers, Internet sites, • and Information Bureaus. • Patients can get information before preparing to • travel for medical procedures. F.F.O. Health Care Tourism 09.05.06

  45. Creating a seamless Single-Window Facility for a maximum patient experience. (3) “One-Stop Shopping”: SWs should allow medical tourists to access many or all of the services delivered by the Medical Tourism Providers, Governments, and Regulatory Bodies in one convenient location (physical or electronic). The continuing development of Medical Tourism services delivered through the internet offers new opportunities for that. F.F.O. Health Care Tourism 09.05.06

  46. Creating a seamless Single-Window Facility for a maximum patient experience. (4) “Seamless Service”: • Sws should provide “Boundless Service” in a specific service sector (Medical Tourism), or for a specific client group (Foreign Traveler Patients). • It should be delivered between Countries, Governments, Districts, and Departmental boundaries. • So, it meets a service need that is spanned between countries and all facilities of treatment chain and refers organizations. F.F.O. Health Care Tourism 09.05.06

  47. CONCLUSION • The supply of Health Care Services is growing very fast, Uncoupled by a parallel increase on the need side. • Medical Tourism is the only possible way to increase the need for Health Care Services. • Implementation of new evolving strategies is a must to be able to attract Foreign and Local Patients. • Creative Thinking and Innovation is the only competitive edge that keeps you on the Leading Position. F.F.O. Health Care Tourism 09.05.06

  48. Shifting Responsibilities for Medical Tourism Development Recommendations Old Model New Model • Economic development is a Collaborative Process involving government at multiple levels, companies, teaching and research institutions, and Medical care institution. • Health care Tourism will be considered as a National Challenge of Strategic Dimensions. • Government droves economic development through policy decisions and incentives F.F.O. Health Care Tourism 09.05.06

  49. “It is not the strongest of the species that survives, not the most intelligent, but the one most responsive to change.” Charles Darwin ( 1809 – 1882 ) Thank You; END. F.F.O. Health Care Tourism 09.05.06

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