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Health Tourism
100 years of living science
Dr Steve Hajioff, Director, PHAST
November 2007• University of Mauritius
Health Tourism
Definition of Health Tourism
Definition: planned use of medical services away from home: Health
Tourism (Medical Tourism) is the travel to other nations or territories for
the purpose of procurement of medical services and other health
interventions.
Health Tourism
Timeline of Health Tourism – the ancient world
Health Tourism
Timeline of Health Tourism – the spas of Europe
Health Tourism
Timeline of Health Tourism – the present and beyond
Health Tourism
Who?
•The uninsured
•Lifestyle experience
•Cosmetic and lifestyle procedures
•Wealthy people living in less developed nations
•Middle income people living in richer nations
•?Insurance/social insurance/state commissioned systems
Health Tourism
Who?
Health Tourism
Who?
Health Tourism
Who?
Health Tourism
The Benefits for the Individual
•Lower out of pocket payment
•Access to technologies/procedures
•Waiting times
•Privacy/anonymity
•The visual environment and wound healing
Health Tourism
The Benefits for the Individual - price
Procedure
US Cost
India
Thailand
Singapore
Heart Bypass
$130,000
$10,000
$11,000
$18,500
Heart Valve Replacement
$160,000
$9,000
$10,000
$12,500
Angioplasty
$57,000
$11,000
$13,000
$13,000
Hip Replacement
$43,000
$9,000
$12,000
$12,000
Hysterectomy
$20,000
$3,000
$4,500
$6,000
Knee Replacement
$40,000
$8,500
$10,000
$13,000
Spinal Fusion
$62,000
$5,500
$7,000
$9,000
Source: HCUP/provider quotes
Health Tourism
Risks for the Individual
•Complications/cost of follow up
•Medico-legal
•Clinical notes
•Counterfeit drugs
•Insurance coverage
•Lack of social support
•Travel complications
Health Tourism
Benefits for the host nation
•Capital development of healthcare infrastructure
»Better facilities for the home population
•Development of clinical standards and governance
»Better health and healthcare for the home population
•Government revenues
•Economic development
Health Tourism
Benefits for the host nation – government revenues
•Taxation
•Service provider arrangements
•Visa fees
Health Tourism
Benefits for the host nation – economic development
•Total health tourism market estimated to be worth US$40bn in 2010
•Health tourism market estimated to grow by US$188bn 2013
•Other estimates place the market in 2015 in trillions of dollars
•The total GDP of Mauritius in 2006 was estimated at US$7.2bn
•US$1 buys approximately 2.5 times as much in Mauritius as in the US
•Capturing 1% of the global market would roughly double GDP growth
•Spin-off benefits for broader economy
Sources: D Hancock, Central Intelligence Agency
Health Tourism
Risks for the host nation
•Unrealised potential
•Suboptimal capital arrangements
•Suboptimal revenue arrangements
•Reputation
•Public health risks
•Social costs
Health Tourism
WHO comparative indicators
Total number of health workers per 10000 population
125
116
59
52
46
32
19
14
Australia
India
Mauritius
Singapore
South Africa
Thailand
United Arab
Emirates
United
States of
America
Health Tourism
WHO comparative indicators
Number of physicians per 10000 population
28
25
17
14
9
7
6
3
Australia
India
Mauritius
Singapore
South Africa
Thailand
United Arab
Emirates
United
States of
America
Health Tourism
WHO comparative indicators
Per capita total expenditure on health US$PPP
5,274
2,699
1,105
750
689
387
321
96
Australia
India
Mauritius
Singapore
South Africa
Thailand
United Arab
Emirates
United
States of
America
Health Tourism
Benefits for the host nation – economic development
•1% of the global health tourism market in 2013 >US$2bn
•This is equivalent in purchasing power to US$5bn
•The total GDP of Mauritius in 2006 was US$7.2bn (17bn PPP)
•Health expenditure in Mauritius in 2002 was US$400m (1bn PPP)
Sources: D Hancock, Central Intelligence Agency, WHO
Health Tourism
WHO comparative indicators
Total expenditure on health as % of GDP
15
10
9
6
4
4
4
3
Australia
India
Mauritius
Singapore
South Africa
Thailand
United Arab
Emirates
United
States of
America
Health Tourism
Summary
•Timeline of health tourism
•Characteristics of a health tourist
•Benefits and risks for the individual tourist
•Benefits and risks for the nation
•Comparative indicators with potential customer and competitor countries
•Potential impacts for the economy of Mauritius
Health Tourism
100 years of living science
Dr Steve Hajioff, Director, PHAST
November 2007• University of Mauritius