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

2. F.F.O. Health Care Tourism 09.05.06
Points Of Discussion
A look on the Market – Dubai Health Care City.
Medical Tourism.
Strategies to attract Foreign and Local Patients.
Conclusion and Recommendations.
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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.
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4. Population ( Nationals )Statistics
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5. Population Classification8%
50%
19%
23%
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6. F.F.O. Health Care Tourism 09.05.06
Dubai Health Care City
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7. F.F.O. Health Care Tourism 09.05.06
Dubai Health Care City
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8. F.F.O. Health Care Tourism 09.05.06
Dubai Health Care City
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9. F.F.O. Health Care Tourism 09.05.06
Dubai Health Care City
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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
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11. Hospital Beds Future Expansion
+ 30%
+86%
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12. Hospitals Beds Occupancy Rates (Average)
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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).
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14. How to change the future for these Hospitals???
Full Occupancy Hospital
Empty Hospital
MEDICAL TOURISM
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15. F.F.O. Health Care Tourism 09.05.06
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.
WHO defines it as:
Medical care
Sickness & well-being
Rehabilitation & recuperation
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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
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17. F.F.O. Health Care Tourism 09.05.06
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. 
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18. F.F.O. Health Care Tourism 09.05.06
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.
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19. F.F.O. Health Care Tourism 09.05.06
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 .
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20. Tourist Arrivals Forecast
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21. Medical Tourism - India
Medical tourism in India could become a multi-billion business by 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.
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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.
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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. 
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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
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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
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26. Medical Tourism Cluster
Supplier Industries
Supplier Industries
Hospitals, Hotels, Restaurants, Airports,
Local Transportation, Shopping Malls, etc
Cluster Foundations
Policy/
Sustainable
Human
Physical
Promotion/
Regulatory
Environment
Resources
Infrastructure
Image
Framework
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27. Medical Tourism Perceptions & Worries
Foreign Patient’s Point of View
Negative Perceptions
Hygiene/Unsanitary
Pollution
Backward &
Bureaucratic
Medical Insurance
Inadequate Cover
Underdeveloped
Insurance Frauds
No Global Players
Overseas Companies
Refuse
Reimbursements
Instability
Terrorism Prone
Communal Unrest
Connectivity
No Flights!!
Bad Roads
Backward
Accreditation
No Uniformity
ISO, CRISIL, ICRA
WEST: JCIAHO
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28. - US delay in granting Visas
Consequences:
Number of Visas issued for medical reason plummeted from in 2001 to 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).
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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.
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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.
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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.
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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 +
POTENTIAL
assessment
IMPROVEMENTS
Implementation
Value Proposition
Maximization
GOVERNMENT & INDUSTRY HAND-HOLDING: A MUST !!!
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33. Maximising the Value Proposition ( 2 )+
POTENTIAL
IMPROVEMENTS
Medical Treatment & Education based on International Standards & Accreditation
Industry Accreditation Standards
Target-oriented Infrastructure Investment
More Medical Colleges for Medical professionals & Health Care Management
Active Regulatory Bodies
Government soft loan to private investors in Health Care & Health Care Education
Tax Holiday & Further Duty Roll Back
Governmental Support for National Medical Associations & Scientific Societies
Greater Industry & Govt. Interaction
Medical Insurance Reforms
Govt. is promoting UAE as a 1st class global Medical Tourism Destination
Doctors & Paramedics
Expertise Recognized
Cost Advantage
Language Skills
Vibrant Industries
IT Strength
Management Skills
Pharmaceutical Industry
Tourism Potential
Service Industry Mindset
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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 %
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35. Maximising the Value Proposition ( 4 )
Procedure
in $ US UK
Burmungrad Bangkok
Max Healthcare
India
Raffles
Singapore
Angioplasty
30000
5000
Angiography
2000
1100
400
800
Hip replacement
19000
4300
6000
6600
Knee replacement
Lasik
750
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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 network of four 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.
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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.
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38. F.F.O. Health Care Tourism 09.05.06
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.
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39. F.F.O. Health Care Tourism 09.05.06
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.
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40. Launching an aggressive Marketing Campaign to capture the market. (1)
The Good Old 4P’s of the Marketing Mix
Price
Promotion
Place
Product
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41. Launching an aggressive Marketing Campaign to capture the market. (2)
PRICE
PRODUCT
Rule: Offering a better Service Standards, while
making it available at a lower coast, than the
patients Homeland Service prices.
Actions:
PRICE
Fixed Price Strategy.
Tax Treatments.
Customs Clearance.
Premium Mark-ups.
Specialties in specific clinical areas.
Strong Medical Research.
State of Art Technology & Equipment.
PRODUCT
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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
Research Other Countries Service needs.
Medical Breakthrough.
Service Providers Networking.
Visa facilitation.
Referral Agencies.
Advertisement.
Internet Marketing.
PLACE
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43. F.F.O. Health Care Tourism 09.05.06
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”.
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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.
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45. F.F.O. Health Care Tourism 09.05.06
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.
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46. F.F.O. Health Care Tourism 09.05.06
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.
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47. F.F.O. Health Care Tourism 09.05.06
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.
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48. Shifting Responsibilities for Medical Tourism Development
Recommendations
Shifting Responsibilities for Medical Tourism Development
Old Model
New Model
Government droves economic development through policy decisions and incentives
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.
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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.
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