Medical Tourism Blog

In tune with our last two interviews, we're taking a look at the effect of medical tourism on the healthcare infrastructure of countries like India and Thailand. If you are an economics whiz, I suggest you read Dr. Bookman's interview and her book. If you're a medical tourist, or a part of the medical tourism industry, continue reading for scoops on the massive changes underway in the healthcare sectors in India and Thailand.

The $250 Million Medicity project in Gurgoan, India promoted by a joint venture between GE and Dr. Naresh Trehan, an eminent cardiologist and healthcare aadministrator in New Delhi. A bit of history here about Dr. Trehan. Until recently, he was the Exec. Director and Chief Cardiovascular Surgeon at the Escorts Heart Institute. On the 18th of May, 2007, he quit his post due to differences with the Management. The management cited Dr. Trehan's fixation with Medicity as one of the main reasons for the fallout. Dr. Trehan is now a consultant for Apollo Hospitals Group, which is one of the main competitors for Escorts, in a bid for medical tourism dollars.

I don't claim to know the inner details of this fracas, or the effect on the overall healthcare network in India. What I do know is that healthcare in India does not work on an insurance, or monthly premium model. Almost all of the care and treatment performed by hospitals throughout India is done on an ad hoc basis, with patients being charged for everything. The bigger the hospital, the costlier the treatment. The private healthcare system in India is rushing towards a system similar to that in Western nations, with insured healthcare and employer paid cover. And medical tourism is accelerating that process. In that sense, I guess you could say that it a good thing. But profit hungry corporations and CEO's are also doing exactly what happened to the healthcare system in the US. Let's hope they don't end up SICKO.

As for Thailand, the situation is a bit different. The two major hospital groups, Bumrungrad International and Bangkok Hospitals Group, are raking in the profits and medical tourism dollars. They're spending millions on expansion and new buildings and facilities. That has left the rest of the pack far behind, competeing for local patients, without the financial muscle of the big two. The number of private hospital groups in Thailand is shrinking, with currently over 350 groups, expected to drop to about 10 in the next decade. Its a market based economy, and due to Thialand's relatively smaller size and population, they can easily handle any fluctuations in supply and demand. The healthcare situation in Thailand looks much more attractive and more stable now, with international tourists, than before.

Which leaves the US healthcare sector. Obviously, if the money is flowing out, its not going to help. But it is money saved for individuals, like Bobby Berger, who saved $108,000 on a hip replacement by going abroad. Again, its a market based economy, and the system will correct itself. There's enormous pressure on Congress to do something about affordable healthcare, and its my guess that by 2009, we'll be seeing some major changes.

All in all, I'd say that on account of medical tourism, we're seeing an improvement in healthcare services in India and Thailand, and by virtue of the necessity of survival in a globalised economy, also in the United States.