Medical City of Hungary Strengths and Advantages Dr. Jeno Pali Budapest, Hungary, 2009

SWOT-analysis

SWOT — Strengths: There are no other hospitals with the planned high quality medical services in Central-Europe Clear strategy Unique treatments (e.g. stem cell therapy, vaccination against atherosclerosis) Personalized medicine Combination of western- and eastern-type medicines Competitive board Hungary is already the center for dental and medicinal (thermal) water tourism in Europe, and the center of the pharmaceutical industry in Central- and Eastern-Europe Government supports the establisment of the Medical City of Hungary

SWOT — Weakness: World economic and financial crisis Delayed opening Lack of franchise-routine in Hungary

SWOT — Opportunities: Continuously growing requirements on medical services Growing number of patients can and tend to pay for the higher quality medical services Introduction of brand new treatments and methods Expansion to neighbouring countries, know-how transfer and technology export

SWOT — Threats: Similar idea and strategy of an other company, but faster entry into the market Reaction of existing private hospitals

Education and pharmaceutical industry in Hungary

Education: Hungary is very famous for its medical education. 40% of the students attending the medical universities in Hungary are coming from foreign countries, especially from Germany, Greece, and the Scandinavian countries. Hungarian doctors are also much in demand everywhere in the European Union.

Pharmaceutical industry: Hungary was the center for pharmaceutical industry in Central- and Eastern-Europe during the last century. Medicines (as well as medical equipment and devices) were developed and manufactured here and exported to the Central- and Eastern-European countries. Nowadays, many qualified and well-trained professionals, experts, scientists and researchers work in the fields of pharmaceutical and medical industries in Hungary.

International dental tourism in Hungary

Hungary is the main destination for international medical tourism on dentristry in the world currently 360,000 patients come from Germany, Great-Britain, Austria, France, Ireland, Norway, Denmark, Italy, the Netherlands, the United States, and nowadays also from Asia and Arabian countries. For example, 40,000 patients come only just from Great- Britain in every year!

Private dentistry in Hungary: lowest price, highest quality! -70% compared to the prices in the U.S.A. -60% compared to the prices in Great-Britain -40% compared to the prices in Mexico -15% compared to the prices in Poland or Bulgaria See an example here:

Medicinal baths: a unique feature of Hungary

Definitions: Mineral water: The water comes from the deep layers of the ground and the content of biologically active minerals in it is 1000 mg / liter at least. Thermal water: The water comes from the deep layers of the ground, its temperature is above 30 °C (86 Fahrenheit) and it is usually rich in minerals. Medicinal water: It can be mineral water, thermal water or both, but possesses also therapeutical effects when drinking it, or having spa therapy.

Hungary is exuberant in mineral, thermal and medicinal waters: HUNGARY /United Nations’ report/

Hungary is exuberant in mineral, thermal and medicinal waters: 1372 thermal spring 385 thermal bath 197 certified medicinal bath 65 unique certified medicinal bath For example: Budapest: Hajduszoboszlo: Harkany: In year 2008: – 310,000 foreign patients – 460,000 domestic patients visited the medicinal baths in Hungary.

HEVIZ thermal medicinal lake: Hungary is exuberant in mineral, thermal and medicinal waters:

Development of the international medical tourism

The United States: Number of patients involved in the medical tourism in year 2007: 750,000. Number of patients involved in the medical tourism in year 2008: 1,500,000. The expected number of patients involved in the medical tourism in year 2009: 3,000,000.

Medical Tourism in Singapore: Number of treated foreign patients in year 2004: 320,000. Number of treated foreign patients in year 2006: 410,000. The expected number of treated foreign patients in year 2012: 1,000,000.

The impulsive force of the international medical tourism: Saving on costs of medical attendance must be at least 50%, while the quality of medical attendance must be the same, or better than it is accustomed in the homeland.

In year 2007: The average cost of 16 surgical interventions in the United States was: 10,629 USD. The average cost of the same 16 surgical interventions in the destination countries of the international medical tourism was only: 1410 USD. /Deloitte/

Local target market in Hungary

Local target market in Hungary: 70,000 middle- and top-level managers work in the capital city Budapest and its surrounding area. 50,000 employees from western countries also work here. 350,000 Hungarian patients in the central region of Hungary (Budapest and surrounding counties) are ready to pay for the higher quality private medical attendance. The vaccination against atherosclerosis will be a unique treatment: most people die of atherosclerosis and its consequences in Hungary! There are 600,000 patients in Hungary who suffer from diabetes and could be treated with the help of stem cells. There is no ‘PERFEXION model’ of Leksell gamma knife in Hungary, which can operate tumours in face, neck and cervical spinal cord regions in a radiosurgery way at present.

Thank you for your attention! Dr. Jeno Pali, Ph.D.