Case Study Solution: Medical Devices

IDENTIFYING INTERNATIONAL

MARKETING OPPORTUNITY IN MEDICAL

SERVICES

Section A

Group 6

CASE SUMMARY

Global medical tourism industry: $ 40 billion

(2004) $100 billion (2012)

Expected annual growth: 35%*

Thailand has emerged as the biggest

destination

India has the potential to attract 1 million

tourists per annum, which could contribute to

$6 billion to the economy**

Opening of international markets under WTO to

fuel growth in this sector

Sources: *Medical tourism: Update and implications Deloitte;

**Confederation of Indian Industry

TRENDS PREDICTED BY WTO

Cross border delivery of trade to become

significant

Telemedicine is also on the rise

Setting up of hospital chains in international

countries to become another important frontier

Global movement of healthcare professionals

to be on the rise

INDIA’S ADVANTAGE

Major destination of cost effective medical

tourism

Medical tourists are coming from diverse

geographies

India has a large workforce of healthcare

professionals

Increasing world elderly population has a

potential for India's medical tourism

Healthcare systems in these countries are under

severe pressure for delivering cost effective

treatments

IDENTIFY THE FACTORS CONTRIBUTING

TO THE EMERGENCE OF INTERNATIONAL

MARKETS FOR MEDICAL SERVICES

COST ADVANTAGE

USA India South Africa Thailand

Hip Replacement 17,000 2,500 6671 NA

Open Heart Surgery 150,000 5,000-10,000 13,333 7,500

Lasik 3,100 700 2,166 730

The table shows the cost of certain medial treatments in USD in India compared with

other countries

We can see that India has a clear cost advantage

INCREASE IN ELDERLY POPULATION

This increase is experienced in USA, UK, Japan,

and other major European countries

Population of 65+ aged people to double in USA

over the next 15 years

In UK, population with 60+ aged to form 25% of

the population

There is an increasing life expectancy in these

parts

Health insurance premium goes up exponentially

as age progresses

INCREASING STRESS IN DOMESTIC

HEALTHCARE MARKETS

Doctors and nurses joining the workforce in USA,

UK, and Japan are not keeping pace with the

growing demand

There is an increasing cost of healthcare

IDENTIFY THE AREAS WHERE IN INDIA OR

YOUR HOME COUNTRY HAS GOT

STRATEGIC EDGE IN HEALTHCARE

SERVICES VIS-À-VIS OTHER COMPETING

DESTINATIONS FOR MEDICAL TOURISM

COST ADVANTAGE (2003)

USA India South Africa Thailand

Hip Replacement 17,000 2,500 6671 NA

Open Heart Surgery 150,000 5,000-10,000 13,333 7,500

Lasik 3,100 700 2,166 730

The table shows the cost of certain medial treatments in USD in India compared with

other countries

We can see that India has a clear cost advantage

COST ADVANTAGE (2011)

Source: OECD Report;

STRATEGIC EDGE

Provides holistic treatment, including Ayurveda,

to a variety of chronic diseases

Large workforce of doctors: 20,000 graduating

every year

World class facility in cardiac surgery,

orthopaedic, neurosurgery, and Lasik

EXPLORE THE WEB AND CARRY OUT A CROSS-

COUNTRY ANALYSIS OF THE MAJOR

DESTINATIONS OF MEDICAL TOURISM AND

IDENTIFY THE RANGE OF SPECIALIZED

SERVICES OFFERED ALONG WITH THEIR

STRENGTHS AND WEAKNESSES

PANAMA: OVERVIEW

Major clients come from USA and UK

Investment boom in health care industry

Development of super speciality hospitals

Development of skilled workforce for healthcare

Two pronged strategy for healthcare and tourism

PANAMA: MAJOR SERVICES

Dental care and related services

Cosmetic surgery and other corrective services

Orthopaedic services

Cardiovascular treatment

Fertility

Stem Cell research

PANAMA: ADVANTAGES

Low cost

Hotel services-most hotels have expanded their

services to include that of being a link between

inbound patients and medical tourism service

Travel agencies-capitalizing on their experiences

and skills in tourism, travel agencies have

packages that medical travellers can purchase to

enable them tour various parts of the country

Medical service planners-this category of

facilitators are instrumental in the entire medical

tourism loop.

PANAMA: DISADVANTAGES

Lack of regulation

Need for development in strong institutional

capacity

Source: http://medicaltourismtoday.com/medical-tourism-in-panama/

BRAZIL: MAJOR SERVICES

Cosmetic and plastic surgery

Fertility treatment

Neurosurgery

Cardiac surgery

Dermatology

Dental treatments

Hair transplants

BRAZIL: ADVANTAGES

Low cost

Very high quality health services

Rest and recuperate within Brazil in one of its

many seaside resort locations

Most Brazilian hospitals accept worldwide

international medical insurance

Availability of medical tourism facilitator services

BRAZIL: DISADVANTAGES

Cost is still higher compared with Asian countries

Source: http://www.allmedicaltourism.com/articles/destinations/brazil/

COSTA RICA: MAJOR SERVICES

Cosmetic surgery

Aesthetic procedures

Orthopaedic surgery

Dentistry

Bariatric and laparoscopic surgery

Fertility and addiction treatments

COSTA RICA: ADVANTAGES

Low cost

A wealth of high grade medical facilities, world class medical professionals as well as a WHO acclaimed health care system which is at par with the ones in developed countries like the United States and the United Kingdom

Good quality of care given before and after surgery.

Physicians in Costa Rica spend more time with their patients compared to doctors in the United States. quality of care given before and after surgery

COSTA RICA: DISADVANTAGES

Need to develop capacity

95% clients from USA, need to diversify the client

base

Source: http://medicaltourismtoday.com/medical-tourism-in-costa-rica/

PREPARE A STEP-BY-STEP FLOW

DIAGRAM OF THE SELECTION PROCESS

OF MEDICAL TOURISM DESTINATION FOR

OVERSEAS PATIENTS

DEVELOPMENT OF MOTIVATION

DECISION MAKING

IDENTIFY VARIOUS FACTORS THAT INFLUENCE

A PATIENT’S DECISION FOR CHOICE OF A

COUNTRY AND THE HOSPITAL FOR MEDICAL

TREATMENT. PRIORITIZE VARIOUS FACTORS

AND ASSIGN WEIGHTS SO AS TO ARRIVE AT A

DECISION.

FACTORS

Cost

Quality

Safety and Security

Recuperating Climate

Insurance Coverage

Sources: http://epubs.scu.edu.au/theses/147/

http://iranht.ir/sites/iranht.ir/files/publications/sciencedirect96740c24-cb7f-20130912092049.pdf

http://www.webster.ac.th/2012/pdf/thesis/2011-12/mba/Kristine%20Ricafort/RicafortK.pdf

FACTORS CLASSIFICATION

Cannot be compensated: Quality, Safety and

Security

Important: Cost

Additional: Recuperating Climate, Insurance

Coverage

FACTORS CLASSIFICATION

Factor Importance

Cannot be compensated

Quality 30%

Safety and Security 35%

Can be compensated

Cost 25%

Additional

Insurance Coverage 3%

Recuperating Environment 7%

THANK YOU!