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Cyril Parry waited for a very long time for his
turn to come. The 59-year-old retiree from Birmingham,
UK, was suffering from rheumatoid-arthritis. He
needed a hip replacement operation urgently. He
waited patiently though his pain was getting worse
and his movements increasingly restricted. Unfortunately,
Parry was stuck at the end of a very long queue.
The overburdened National Health Service orthopaedic
surgeons in the UK were booked solid - for several
years. Finally, Parry was told that his turn would
come four years and nine months down the line.
That was when Parry started surfing the Net to
see if he could get his hip surgery done elsewhere
in the world. After a full year of research, he
shortlisted two destinations: a hospital in Thailand
and Apollo Speciality Hospital, Chennai. In November
this year, Parry opted for the latter because,
at £4,000 (excluding airfare but inclusive
of a 10-day stay, post-operative care and a full
health check-up), it was almost £5,000 cheaper
than the Thai option.
It was ironic that Parry needed to travel abroad
for his treatment. He was, after all, undergoing
a procedure called the 'Birmingham Hip Resurfacing'
- a new technique considered as a superior alternative
to the full-hip replacement surgery, and named
after the city it was pioneered in. It was perfected
at the Royal Orthopedic Hospital in Birmingham
as recently as 1998.
Cyril Parry needed to travel because of the healthcare
system followed in the UK which is creating long
waiting lists of patients in that country. More
on that later. But long waiting lists are not
the only reason that there's been a huge surge
in medical travel globally in recent years. Patients
from rich countries in the Middle East travel
to the US when they need top notch medical care.
Residents of poor developing nations such as Nigeria
or Bangladesh travel to their more developed neighbours
for medical treatment because there aren't enough
good facilities available in their own countries.
Thousands of Japanese citizens seeking medical
treatment fly abroad because of the prohibitive
costs of treatment in their home country. Americans
seeking cosmetic surgery often fly to South Africa
for face tucks and breast augmentation because
their insurance coverage doesn't pay for those
- and it is cheaper to get them done in South
Africa than back home.
Nobody has collated the complete worldwide statistics
about how many people travel abroad for health-
and medical care-related reasons every year or
how much they spend. But a Saudi Arabian report
pointed out that in 2000, medical travellers from
the Gulf region alone spent over $27 billion seeking
treatment in various nations around the world.
If the medical travellers from around the world
spent even half as much that year, the total business
in 2000 alone would have been in excess of $40
billion. And even that could be an underestimate.
"The estimate is that the healthcare market
in the Organisation of Economic Cooperation and
Development countries alone is worth about $3
trillion, and expected to go up to $4 trillion
in 2005," says Rupa Chanda, professor at
the Indian Institute of Management-Bangalore,
and who was part of a working group led by Isher
Ahluwalia of ICRIER which prepared a report for
the World Trade Organization on the potential
for trade in health services. Chanda refuses to
hazard a guess on how much of this is actually
cross-border medical traffic, just saying that
the opportunity is huge.
More importantly, it is growing rapidly and turning
out to be an immense business opportunity for
nations that are positioning themselves correctly.
Last year, just five countries in Asia - Thailand,
Malaysia, Jordan, Singapore and India - pulled
in over 1.3 million medical travellers and earned
over $1 billion (in treatment costs alone). In
each of these nations, medical travel spends are
growing at 20%-plus year-on-year.
Elsewhere around the world, Hong Kong, Lithuania
and South Africa are emerging as big medical/healthcare
destinations. And a dozen other nations including
Croatia and Greece plan to make themselves attractive
healthcare destinations.
By itself, travelling abroad for health is not
a new phenomenon - even in ancient times, there
were examples of people travelling abroad to spas
or famous medical centres for health treatment.
But in the past five years or so, the movement
has accelerated sharply. It has developed a massive
momentum for two critical reasons.
The first is, of course, the demographics of the
developed nations and also the problems that are
cropping up in their healthcare systems. In the
US, the UK, Japan and many European nations, the
proportion of the elderly (60 years and above)
vis-à-vis the total population is increasing
rapidly. In the US, the baby boomers - the biggest
chunk of the population - have either hit retirement
age or are heading towards it. The number of people
aged 65 years and above is expected to double
in the next 15 years. In the UK, the people aged
60 years and above will form 25% of the population
in the next 30 years - up from 16% now. Similar
trends are being seen in almost all nations in
Western Europe. Meanwhile, life expectancy here
has risen steadily over the years. Add the two
up and you get a big surge in demand for healthcare.
The big problem is that as their health needs
increase exponentially, the healthcare systems
in these countries are beginning to creak under
the pressure. The number of doctors and nurses
joining the workforce in both the UK and the US
is not keeping pace with all the demands of the
ageing population. This is creating the push factor.
Meanwhile, there is a pull factor being created
by a handful of developing countries like Thailand
and Malaysia that have good doctors and excellent
facilities, and which are positioning themselves
as medical destinations in order to boost their
economies. Both Thailand and Malaysia see this
developing into a multi-billion dollars-a-year
business. There is also the other factor - like
people from the least developed countries who
find affordable sophisticated medical care facilities
in developing countries like India and Malaysia.
"The competence and skills of Indian doctors
is accepted internationally and people are coming
from all over the world to our hospital to get
treatment," says Prathap C. Reddy, chairman,
Apollo hospitals group. Curt Schroeder, CEO of
Thailand's Bumrungrad Hospital, echoes that sentiment
about his country's healthcare facilities.
Cross-border travel for healthcare reasons is
still a highly disorganised movement, but nations
are slowly waking up to its potential. In some
places the governments have taken a lead. In others,
like South Africa and Lithuania, travel agents
specialising in medical tourism are driving the
trend. In India, private hospitals like Apollo
and Escorts Heart Institute and Research Centre
are trying to attract patients on their own.
Though the movement can still be considered to
be in its infancy, medical travel has come under
the radar of both the World Health Organization
(WHO) and the World Trade Organization (WTO).
As far back as the early 1990s, the WHO commissioned
the Social Sector Development Strategies, Inc.
(SSDS, Inc.), a Boston-based non-profit organisation
specialising in global healthcare systems, to
see whether the English-speaking Carribbean islands
could become a significant healthcare destination
for travellers from the US, the UK and Canada.
The study took a hard look at both the advantages
and the disadvantages of these nations before
reluctantly coming to the conclusion that they
would be uncompetitive in most of the areas. The
WHO's interest is simple - it realises that medical
travel can help boost the medical facilities (and
the medical economy) in developing countries while
also taking care of some of the problems of rich
nations. The WTO sees medical travel as one of
the four modes (See 'WTO: How The Medical Trade
Will Grow') that will help boost trade in healthcare
services worldwide. Both WHO and WTO understand
that medical travel could ameliorate much of the
demand-supply imbalance in global healthcare.
Developed nations benefit as costs or waiting
time - or both - come down for a significant chunk
of their population. Developing countries benefit
as it brings in revenues - and provides the right
spur to improve their overall healthcare sector,
apart from reducing brain drain in their medical
fraternities. Least developed countries, too,
benefit as they lack facilities for cutting-edge
treatment.
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