medical tourism in india by Janmejay_Bond

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									Table of Contents

   I.     Executive Summary

   1.0 Introduction



















    2.3.1 STRENGTH





Medical tourism

I.      Executive summary:
        The medical tourism is traveling around the world for treatment of some medical purpose. The
        medical tourism is rapidly growing with a big contribution by India. Indian medical tourism is on
        a great demand all around the world, having a great potential. Some factors like population,
        illiteracy, frauds, lack of technology and government funds are becoming barriers to India fast
        growth in medical tourism.

1 Introduction

1.1 Size and Scope of the Medical Tourism:

Medical tourism is the ongoing trend in the field of medicine as well as the hospitality industry. The
medical tourism is the word related to the medicinal and also to hospitality world. It actually means
travelling around the world for the treatment of a particular diseases or a defect. Medical tourism is also
called as global healthcare, which involves travelling in foreign countries for medical purposes. It also
refers critically to the practice of healthcare provider’s itinerant worldwide to deliver healthcare. The
most visited medical travel destinations all around the world include Argentina, Thailand, India, Cuba,
Colombia, Costa Rica, Singapore, Hong Kong, Hungary, Lithuania, Philippines, New Zealand, South
Africa, UAE, Tunisia, Malaysia and Saudi Arabia. Medical tourism in India is a fast growing industry.

Medical tourism in India is growing rapidly with the total support of the government to it. Every year
there is a 25% increase in the medical tourism market in India. According to the medical tourism statics
India, India’s share in the medical tourism industry will be total of 2.4% of world’s medical tourism
market by the end of 2012. Even the medical tourism industry is going to make the revenue of 2 billion
US$ by 2012. According to a study by McKinsey and the Confederation of Indian Industry, medical
tourism in India could become a $1 billion business by 2012. The report predicts that: "By 2012, if
medical tourism were to reach 25 per cent of revenues of private up-market players, up to 2,297,794,117
USD will be added to the revenues of these players" P. (Chandrasekhar, 2006). The Indian industry has a
very large scope, among the most preferred places in the world for medical tourism; India is on the
second place. Many individuals round the world prefer India instead of the developed countries. India had
around one lac fifty thousand travels from various countries like US, UK, Gulf, African countries and
even the SARRAC countries. The most eyes catching point of these travelers to choose India is low cost,
balanced and variety of treatments provided by Indian hospitals. Out of the 15 billion rupees market of
Indian medical industry, about 5 - 10 billion rupees is contributed by the medical tourism. India hospitals
are cheap and give the best doctors as well as service to the patient. ‘The government of India is also
aggressively participating in promoting the medical tourism in India’ was the words of Mrs. Ambika
Soni, union minister for tourism (TOI, 2010).

1.2 Leading Hospitals Providing Medical Services for the Tourists:

There are about 3000 hospitals and 726,000 registered practitioners that serve to the needs of the
country’s population. Many of these hospitals cater to the medical tourist. Few of the well known
hospitals are Apollo hospital; Workhardt, Fortis, Columbia Asia, Sahara, KEM, Institute of Cardio
Vascular Ailment and many more. Apollo hospital is the major service provider of medical help to the
medical tourists in India. Fortis hospital, Bangalore is ranked 1st in the list of world’s best hospital for
medical tourism. The tourist get world class treatment services at their expediency at cost which is 30% to
70% less as weighed against the cost of treatment in Thailand or US. The medical packages range from
health check up packages to posh heart surgery packages. On the facilities and service provided by Indian
hospitals and hotels, Dr Reddy (2003) said, “There is no reason why we should not become the healthcare
destination of the world."

1.3 Problems Faced By Tourist in India:

The major problem of the tourist coming to India is that, they do not know the culture, language of the
country but also it is unaware of the regional language of other region in India. The foreign tourist
regularly complaint about the inconvenience they face while interpreting with the locals. That means
there are very few interpreters who can explain the tourists. In India due to the overpopulation there is
poor administration and management. The tourist many times complain about improper management of
their total tour and their hospitals.

1.4 Companies Providing Medical Tourism Services in India:

There are not many medical tour operators in India, as this industry is still in process of growing and
getting known by the people in India. Here are few of them Advent Medical Services group, Indicure
limited, Erco travels, Mediscapes India ltd, Sahaj dental clinic. There are very few companies which are
in contracts with hotels as well as with hospitals. But there are few companies or the tour operators in
India which provide various services for the betterment of their guests and medical tourists. One such
company is Mediscapes India, which provide special services to their guests like international patient care
coordinator- personal coordinator is appointed for all the queries of the guest like scheduling,
appointments, transportation, translations and even this coordinator will assist through entire treatment,
special diet services, concierge services, health checkup package services, single room at the hospital
service (mediscapes India 2009). Another medical tourism service provider called Sahara medical tourism
India provides many more services like transportation to and from airport, special mobile phone for the
patient, translator service if required, assistance in hotel check in & admission formalities in hospital,
personal nurse attendant on request, personal tour guides for shopping and touring, organizing tours and
sight scenes and very important air ambulance service if required (Sahara medical tourism India). The
Apollo hospital has joined its hands with the Taj hotels and resorts for providing five star services to their
patients. . Apollo hospital in the year 2000 joined hands with the Sindhori hotels and then now in 2009
they joined their firm with the Taj group of hotels, India. Recently ITC group has also put their first steps
further in the field of medical tourism by venturing with the Jupiter hospital

1.5 The Product that should be Available in India (new product):

   In India, the word luxury is very less used in relation to hospitals. The concept of luxury hospitals is
very famous in United Kingdom and United States. In India the concept of luxury hospital is not known
or is known to negligible amount of people. In Indian hospitals there are executive wards or the special
wards. There is not a single luxury hospital in India. In India there is a concept of special wards or special
rooms. Launching of a luxury hospital in India would be a great idea as the people of India easily get
attached to the luxury and even India is home to the fastest growing number of millionaires among the
countries in the Asia-Pacific region and even of billionaires according to the Forbes magazine. The luxury
hospital will have various facilities for its patients as well as their relative. The luxury hospital would
have large air conditioned room with facilities like LCD televisions set, coffee machine and fridge in
room, 24 hours room service facilities, separate bed for the patient relative, meeting room attached to
each room, sofa cum bed and special nurse for 24 hrs on request. The hospital will have a restaurant
serving multi cuisine and even special diet health food. The hospital will have a shopping mall and a
coffee shop. The hospital will would be a state of art. Launch of such a luxury hospital in India would
bring a revolution in the Indian hospitality and healthcare market.


2.1.1 Political issues:

The government of India is very much in support of the medical tourism. The government is taking a
considerable amount of steps towards the growth of the medical tourism industry. The growth of this
industry mostly depends upon the infrastructure and the funds provided by the government. The growth in
medical tourism is increasing by 30% per year. The government of India through its campaign ‘Incredible
India’ is publicizing the medical tourism. If the government reaches the target of health care spending
level to 2% of the GDP, then the people spending would double from 170 billion(Indian express, 2004).
The state governments are also trying their best to attract the foreign medical tourists by leveraging the
traditional wellness system of India. The European and the American nation provide insurance but is very
slow process and had waiting list. National medical system and health insurance India are well developed
convenient for visitors from West and Middle East.

  The medical tourism in India is badly affected due to the political imbalance between the neighboring
nations. The medical tourist decreased from 5.36 million (2008) to 5.16 million (2009), as there were
many cancelation of surgeries. Then Indian Finance minister Jaswant Singh had called India to become a
global healthcare destination.
2.1.2 Economical issues:

The health care and tourism is a flourishing rapidly. The medical tourism is one of the sources from
where the economy of India can get stronger. India is having an opportunity of earning Rs 10,000 crore in
this industry. The treatment in India is cheap than other nations. The whole treatment with relaxation tour
comes at a fraction of the procedures and costs in UK and the US. For example a heart surgery in US may
cost Rs 20 lakhs where in India it may cost roughly Rs 2 lakhs. In India most of the companies provide
treatment with a free tour package or included in it.

  According to the finance minister India can become a major foreign exchange revenue earner. The
Fortis Company which is a major player in the medical tourism sector has bought 23.9% stake in the
Parkways Company Singapore which is the best place for medical tourism in South Asia. With this deal
the Fortis is growing to capture the medical tourism market in Asia.

2.1.3 Social issues:

The Indian industries try to mainly concentrate on their human resource than their mechanical part
because of the huge population in India. India has large staff of world class experts and competitive
advantages it offers. India generates about 18,000 doctors every year and due to this skillful human
resource pool, India is able to serve the growing needs of the health care and medical tourists(C Pheba,
2005) Medical tourism in India will generate about 40 million jobs in India by sub-contracting work from
the British. Even 50% of the doctors in India are in urban areas and where 65% of the total health care
services are served in cities by private hospitals. Safety of the medical tourist is also a big issue. The
Indian population is getting more concerned to the health ailments and thus they try to get relaxed and fell
free. Today most of the medical tourists look at their trip as a vacation, where people go for vacation for
refreshment and hence go for medical tourism. Medical tourism is mix of leisure, fun and relaxation with
wellness and healthcare (G Sankaranarayanan, 2005).

2.1.4 Technological issues:

As the world is changing the technology in all the industry is also changing. In India currently there are
3000 hospitals with modern machineries. The hospitals provide state of art facilities. The Indian corporate
hospitals are comparable to hospitals anywhere in the world( Dr Arun Prasad, 2005). Opportunities in
India medical and healthcare sector are good as compared to those in West. The medical tourism in India
would be more attractive to the foreign tourist, if there is a major change in the infrastructure and the
mechanism used in Indian hospitals.


2.2.1 Industrial Rivalry:
The Indian market mostly competes with Thailand, Malaysia, China and Brazil. These are the industrial
rivals but the main rival for India is Thailand, who provides the best leisure facilities and services.
Thailand ranks first in the world. The other nations try their best to provide all the facilities to the tourist.

2.2.2 Bargaining power of suppliers:

Most of the hospitals are managed through their online websites and through the agencies in India.
Hospitals employ highly qualified doctors. The tour operators compete among themselves to give best
package to their customers. Main suppliers are based in the major medical tourist destination like Pune,
Delhi, and Bengaluru. Hospitals have joined hands with hotels to provide best services.

2.2.3 Bargaining Power of Buyers:

The Indian medical tourism provides the best possible treatment and services. The medical tourists have
the power of choosing their own destination and the internet help them and provide the whole concept of
medical tourism and the best destinations at their affordable costs. The hospitals are also including coffee
house and restaurants for better customer service.

2.2.4 Threat of New Entrance:

India ranks no.2 in world for their medical tourism services. The main competitor and the new entering
player in this extending market are Thailand, Brazil and China. The south eastern countries provide the
best spa and massage services with skin treatments. This would be a major threat for the medical tourism
in India as it mainly concentrates on surgeries and bypasses.

2.2.5 Threat of Substitutes:

The tourists mainly flaunt India for its quick medical services and low cost service. But if in future, the
countries of US, UK and the West decrease the rates or the waiting list then it would be a major threat for
Indian medical tourism.

3.0 SWOT Analysis:

3.1 Strengths:

India has a number of hospitals providing almost all the facilities and the treatment. The specialties of
India hospitals are Neurology, Neurosurgery, Oncology, Ophthalmology, Rheumatology, Endocrinology,
ENT, Pediatrics, Pediatric Surgery, Urology, Nephrology, Dentistry, Gynecology, Psychiatry, General
Medicine. India medical tourism is affordable. In India the cost of surgeries cost 1/10 th of the total cost in
UK or US. India has world class hospitals and known worldwide such as Apollo hospitals, Hinduja
hospital, LV Prasad eye hospital and many more(C Kalyan, C Ravi, Deepthi K, 2008). India has the
world class resorts with great luxury facilities. There are many beautiful places in India for tourism. In
India, the doctors practice for the allopathic medicines as well as Ayurvedic medicine which is in a great
demand from all over the world for its less side effects.
3.2 Weakness:
Indian government is not totally supportive and do not take initiative in promotion of medical tourism.
The government started publicizing medical tourism through ‘incredible India’ campaign but the
government did not go any further(C Kalyan, C Ravi, Deepthi K, 2008). The coordination between Indian
suppliers of medical tourism like airlines operator, hospitals, hotels, tour guide is not proper. Most of the
time there is miscommunication between these suppliers and then affect the tourist plans. Indian have a
bad tendency to cheat the foreigners. Due to the poverty in India, there is tendency of Indian public to
fraud or cheat the foreign tourist. Political relationship with neighboring countries is not good. Terrorism
affects medical tourism badly. The Indian sub continent always faces some or the other problem from the
neighboring nations.

3.3 Opportunities:
The demands for the medical service are increasing from countries with aging population. The fast paced
life style increases the demand for wellness tourism and alternative cures. The stressed life and following
same routine on day-day basis makes a person sick and even stressed out. Due to this, now a day the
people have started planning for the medical tourism where they get relaxation with all the physical and
mental cures. Such population is growing rapidly in India itself. There are also increasing demand for
health care tourism from the developing and the under developed countries(C Kalyan, C Ravi, Deepthi K,
2008). As compared to the developed countries the cost of labor and medicine is low. Countries like UK
and Canada have shortage in the national health system and even there are long waiting for the medical

3.4 Threats:
The competition is going on in this industry; with main players excluding India are Thailand, Malaysia,
Singapore and Brazil. The major threat to Indian medical tourism industry is from Thailand, as it is
allowing its people to invest a lot in this industry and even taking care of their guest in proper way. Under
investment in health infrastructure is also a major threat to Indian industry. There are not many hospitals
in India with total modern facilities and infrastructure, as compared to other nations. The tourists are not
treated (socially) properly in India. As the medical tourist have no knowledge about the Indian languages,
the tour guides or even the local people cheat them and ill treat them. They are also exploited by the
illegal money changers. Lack of international accreditation is a major inhibition. Sometimes the tour
operator is not a licensed one and then the tour operator may collect money and get vanished.


The India medical tourism industry can be world’s best medical tourism providing nation if it brings few
changes in the style the government is running the industry. The hospitals in India are good but have to be
upgraded to the international standards. The concept of luxury hospital should be implemented in this
industry; this will give a better scope to grow further. The government should provide more funds and
help in the infrastructural development. The people in India should be taught how to behave with visitors
through advertisements. The Indian government should join hands with the private hospitals and provide
them insurance facilities and technology help.

The medical tourism industry offers high potential for India primarily because of its inherent advantages
in terms of cost and quality. However the competition is getting heated up and the success in future will
largely be determined by development and implementation of a joint strategy by various players in the
industry. India is emerging as an attractive, affordable for healthcare & but there are some challenges that
the country has to overcome to become a tourist destination with competent health care industry(C
Kalyan, C Ravi, Deepthi K, 2008). The government should step in the role of a regulator and a facilitator
of private investment in healthcare. An apex body for the industry needs to be formed to promote the
India brand abroad and aid inter-sectoral coordination. Joint ventures with overseas partners and
establishment of medicities will help in India building a significant advantage and leadership position in
the industry(C Kalyan, C Ravi, Deepthi K, 2008).


SWOT analysis:

Strength:                                              Weakness:
     India having large number of hospitals.              Government not supportive.
     Providing all medical treatments.                    Co ordination between suppliers not
     Affordable.                                            proper.
     World class resorts and hotels                       Political imbalance.
                                                           Frauds and cheats with foreign tourist.
Opportunity:                               Threats :
    Demand for medical tourism rising.        Strong competition from countries like
    People becoming more health cautious.         Singapore, Thailand and Malaysia.
    Increasing demand from developing and     Under investment in the medical field in
       developed countries.                        India
                                               Tourist exploitation in India.
                                               Lack of international accreditation a major

PEST analysis:

Political                                  Economical
     Depend upon funds provided by            Low cost treatment.
         government.                           Major source of income for the nation.
     Marketing through incredible ‘India      Major foreign exchange earner.
         Campaign’.                            Treatment with holiday packages at low
     Political imbalance with neighboring       cost.
     Flexible insurance policies.

Social                                         Technological
    Large Indian population.                      World class technology and infrastructure.
    Skillful and proper workers                   Hospital comparable to any other hospital
    World class expert services by the Indian        in the world.
       doctors.                                    Hospitals with modern technologies.
    4o million jobs to be generated.

PORTER’S five force analysis:
                                    Power of Buyer                Threat of Substitute
    Power of Supplier
                                choose own destination,         Treatments in their own
  hospitals, hotels, tour         hospitals, bookings             countries, decreased
operator, airlines, doctors.

                                                     Industrial Rival
                 Threat of New Entrance
                                                 Thailand, Malaysia,
                   attracting guests, low             Singapore
                    economic income.
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