Public-private partnerships could be a deal changer for medical tourism

Shaaz Mehmood, Director, and Promoter, Medijourn in an interaction with Kalyani Sharma highlights that a surge in medical value travel providers like us in India is a positive vital sign for this industry as well as an indicator of the untapped potential for public-private collaboration

Can you throw some light on the effect of the pandemic on medical tourism in India and globally?

According to data from the Indian Institute of Public Administration (IIPA), approximately 697,453 medical tourists visited India in 2019 alone for medical treatment. While we came across a significant fall in this number with the onset of the COVID-19 pandemic, owing to worldwide lockdowns and travel restrictions. However, as nations opened up their boundaries in 2021, there was a steady recovery and substantial resurgence in the medical tourism sector globally.

Therefore, we firmly believe that by 2023, India will account for 6 per cent of the global medical value travel market share. In fact, foreign citizens from several Asian, African, and European nations are banking on Indian healthcare institutions and are relieved by the flattened COVID-19 curve and the withdrawal of various travel restrictions. This overwhelming need for vital healthcare services among foreign patients demonstrates their reliance on India’s thriving healthcare industry and the anguish of thousands of people who were unable to access them while the pandemic affected their daily lives.

From USD 5–6 billion in 2019 to USD 13 billion in 2022, international experts have already forecasted a 110 per cent rise in the medical tourism market. By 2030, the nation alone is predicted to treat more than 3 million foreign patients, which is four times the number of patients we can handle with ease now.

These reports once again showcase, India’s competitive advantage in the global medical tourism market thanks to its sophisticated infrastructure, cutting-edge technology, and qualified physicians who deliver the finest clinical outcomes at comparably inexpensive rates.

The Government of India recently launched ‘Heal in India’ and National Strategy and Roadmap for Medical and Wellness Tourism to provide a boost to the medical tourism industry in India, what will be the crucial parameters in the proper implementation of such initiatives?

The Government of India views medical value travel and wellness tourism as vital areas with the potential to accelerate India’s growth and achieve the ‘Aatmanirbhar’ Bharat goal. The ‘Heal in India’ initiative seeks to establish the nation as a global hub for health and wellness travel and the government has also developed a robust strategy to achieve this objective. Under ‘Heal in India’, foreigners or those seeking medical assistance will be able to locate a list of hospitals in the country that can provide their preferred medical treatments, as well as information on the treatment package cost, via an online portal. Additionally, they will also be able to apply for visas through the same platform.

To maximise the industry’s potential, we have noticed that India has the power to produce an extra $9 billion in revenue via international patient inflow. The goal is to accelerate India’s journey to becoming one of the best destinations for medical tourism, doubling revenue to $13 billion in four years. Further, the government of India has also proposed a health and well-being budget of US$ 28.7 billion, which is 137 per cent more than the previous year’s budget. It has also planned to adopt a number of efforts like, promotion of ayurveda, yoga, and other Indian systems of medicine in the worldwide market to accelerate India’s emergence as a medical tourism powerhouse.

Some of the crucial parameters to implementation that we see are: –

Awareness and standardisation: While the medical and wellness tourism ecosystem comprises a variety of service providers, facilitators, commercial entities such as hotels and airlines, regulatory bodies, and the government. We also have witnessed gaps that highlights the need to build connections and awareness among these stakeholders regarding the roles and duties of each one. Further, also work towards developing a comprehensive ecosystem backed by standards for cleanliness, quality and services, back-end infrastructure, clear-cut and transparent pricing, and a holistic patient-friendly approach.

Accreditation: Through the National Accrediting Board for Hospitals and Healthcare Providers, India maintains a strong accreditation system (NABH). As foreign patients still placing a lot more weight on JCI accreditation because of the low awareness on NABH in outside countries. India now has 39 JCI-accredited hospitals, even with this there is a need to create awareness about NABH accreditation amongst international patients and emphasize on promoting India as an ideal destination to travel for treatment options.

How can Public-Private Partnerships (PPPs) enhance the overall growth of this sector?

In my opinion, PPPs could be a deal changer for medical tourism as they would open up access to funding and resource optimisation, which is crucial in developing a self-sustained healthcare ecosystem. We also foresee a huge potential for the medical tourism industry of India to flourish under this collaborative effort. In fact the healthcare sector has been one of the industries that have contributed the most to revenue and is expanding on a year-on-year basis. To which both public and private healthcare providers have been crucial in achieving overall growth across the sector.

Over the past few years, national health policies have significantly contributed to the development of a more inclusive healthcare system, and the government’s national plan and roadmap for medical tourism in the nation have benefited greatly from strong public-private cooperation. A surge in medical value travel providers like us in India is a positive vital sign for this industry as well as an indicator of the untapped potential for public-private collaboration.

Additionally, the government has set its focus on making India a hub of medical tourism, and as a result of its efforts and a surge in demand post the COVID-19 pandemic, India will undoubtedly become an ideal destination for medical tourists in the coming years. India will not only lead the world in saving the lives of patients from across the globe, but will also be able to provide employment opportunities, promote positive healthcare microeconomics, and generate more than $13 billion in foreign exchange.

What are the current challenges and gaps at the global as well as local level, that this sector is facing and requires attention?

Despite numerous efforts and initiatives in place, the nation’s medical tourism sector still faces some significant obstacles. As mentioned earlier, promoting and raising awareness of India’s cutting-edge facilities is one of the country’s biggest challenges, additionally, we are seeing fierce competition from other medical tourism destinations like Thailand, Malaysia, Singapore, Turkey, and South Korea that offer affordable and competitive healthcare solutions. There is also a need for foreign direct investments (FDI) as well as other forms of investments, as well as creating an investor-friendly atmosphere. In addition to this, there are other challenges that are specifically related to promoting medical tourism in India, such as the absence of training and development programs for medical professionals including doctors, nurses, and paramedics.

In most foreign nations, information and communication technology (ICT) and ICT-enabled services like online reservations, including ICT-enabled healthcare and allied services, are high on the agenda; nevertheless, in the Indian context, they are comparatively low, but with the Government of India’s ‘Heal in India’ we are about to see a massive shift towards digitally enabled services and healthcare pathways, and irrespective of these above-mentioned challenges we believe that the industry shall continue to flourish.

What are the current trends in the medical tourism industry in India?

Currently, India is witnessing a large influx of medical tourism for patients who travel to India for medical treatment for super-specialized tertiary care, in addition to elective procedures like knee replacements, these also include oncology, neurosurgery, bone marrow transplants, liver and kidney transplants, and paediatric therapies, moreover, India has emerged as a hub for robotics and minimally invasive procedures like TAVI, TAVR, and MitraClip.

We have seen a rise in the inflow of international patients from regions such as the SAARC, particularly from Bangladesh, Nepal, Sri Lanka, and the Maldives, who travel to India in search of high-quality healthcare services has steadily increased. India has historically been a very strong collaborator with Middle Eastern, East African, and ASEAN, as well as CIS nations. In comparison to the United States, Australia, Singapore, or the United Kingdom, India can provide cost savings of up to 65-90 per cent, this represents significant savings for patients. In India, our strategic partner Apollo Hospitals is considered the busiest solid organ transplant center in the world and also has the only Proton Cancer Therapy Center in all of South Asia, Middle East, Africa & Australia. Proton Therapy through pencil beam is the most advanced Radiation therapy in the world and being a JCI-accredited integrated oncology center, has been attracting a large number of international patients at 1/3rd of the cost of what is available in the world with superior clinical outcomes.