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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