Transcript Document

A new approach for
Health Care Tourism
The transfer of knowledge and experience
from Germany to Middle East is opening
new sustainable Business Models
1st German Arab Health Care Forum Berlin,
Wednesday, 13th of December 2006
Prof. Dr. Dr.h.c. Fried Oelschlegel
Saudi German Hospitals Group
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Healthcare Tourism;
trial of a definition
Definition:
The term refers to the increasing tendency among people from the
developed, developing, and underdeveloped countries, or regions ,
where medical services are either very expensive, or not available, to
leave their countries in search for more affordable health options,
often packaged with tourist attractions.
The common perception is :
Patients traveling to doctors depend from offered ( expected)
quality, price, and waiting time of cure
Medical tourism is the act of traveling to other countries to obtain
medical, dental, and surgical care. The term was initially coined by
travel agencies and the media as a catchall phrase to describe a
rapidly growing industry where people travel to other countries to
obtain medical care, while at the same time touring, vacationing and
enjoying the attractions of the countries which they are visiting.
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Health Care tourism is more …
Patients traveling to doctors.
Doctors traveling to patients.
Doctors traveling to (meet) doctors (conferences).
Doctors traveling for further education & training.
Students traveling for education.
Medical companies traveling for business.
Health Care tourism is an esteemed but growing
market of annual app. 80 billions US $ at present
( WHO; Yearbook 2005 )
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Five main sources….
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
Receiving ( accredited ) high-quality health care more cheaply
and more quickly in some developing countries as Poland ,
Hungarian, but also Singapore, Thailand, Indonesia.
Increasing presence of a large sector of citizens without health
insurance, and even more with health coverage that they
consider inadequate.
Some employers, but also Insurance companies concerned
about rising health care costs, are using financial incentives
to encourage employees / clients to experiment with medical
tourism.
No advance care on the spot ; specialized care limited
available e.g. Middle East.
Long waiting list’s for standard performances to increasing
prices ; collapsing Health Care Systems in Europe and
America.
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Medical Tourism
Perceptions & Worries
Foreign Patient’s Point of View
Negative Perceptions
Medical Insurance
Instability
Hygiene/Unsanitary
Inadequate Cover
Terrorism Prone
Pollution
Underdeveloped
Communal Unrest
Backward &
Bureaucratic
Insurance Frauds
Connectivity
No Global Players
No Flights!!
Overseas Companies
Refuse
Reimbursements
Accreditation
No Uniformity
Bad Roads
Backward
ISO, CRISIL, ICRA
WEST: JCIAHO
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Countries Promoting Healthcare
Tourism
Example-South Africa specializes in medical safaris :
Visit the country for a safari, with a stopover for Plastic Surgery, a Nose
Job, and a chance to see lions and elephants
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Prices Comparison of some Medical
Procedures:
Procedure
in $
US
UK
Burmungrad
Bangkok
Max
Healthcare
India
Raffles
Singapore
Angioplasty
30000
2100027000
4000 - 5000
4000 - 5000
5000
Angiography
2500 3000
2000
1100
400
800
Hip
replacement
19000
1300016000
4300
6000
6600
Knee
replacement
27000- 1600032000 18000
-
6000
6000
750
400
-
Lasik
22502900
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Tourist Arrivals Forecast
Tourist arrivals by receiving regions, 1950-2020
1,800
Actual
1,400
1,200
1,000
800
600
150,000 foreigners sought care
in 2004 in India alone; for 2005
and the following years a 15%
growth annually is esteemed .
Medical tourism in India is
forecast to generate over $2
billion in revenue by 2012,
according to a study by
McKinsey, and the Confederation of Indian Industry.
Forecasts
1,600
millions
In 2005:
more than 1.6 Mill people pur chased travel - and healthcare
tours to Asia.
South Asia
Middle East
Africa
East Asia/Pacific
Americas
Europe
1.561
1.006
699 mn
400
200
0
1950
1960
1970
1980
1990
2000
2010
2020
Dubai has increased the number of tourists
from 2001 = 3,63 Mill to 6,67 Mill in 2006; the
goal is 15 Millions tourists in 2010
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What are the benefits ( 1 ) ?
Tangible:
Source of additional national income through wealth transfer
from foreign countries .
Cost advantages in tariff over the developed countries.
Creating attractive working places.
Improve information sharing.
Increase efficiency of patient care process, reducing / cutting of
waiting lists.
Strategic alliances with business partners within and outside the
country.
Technology and knowledge transfer.
Better logistics performances both in internal and external.
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What are the benefits ( 2 ) ?
Better utilization of Infrastructure and skilled manpower.
Opportunity for development in infrastructure in Health, Tourism
and Travel.
Connectivity & synergy effects with air, road, rail and information
and communication industries.
Clustering of medical Travelers – new business fields.
Health opportunities for foreign patients may lead to better
health care standards for Nationals.
Scope for Research and Development to offer comprehensive
medical solutions.
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What are the benefits ( 3 ) ?
Intangible:
International acceptance and reputation for the country
as a global healthcare provider.
Social and cross cultural experience.
International customer relations.
Global Marketing and Medical Trade relations.
Brand image of nation as world class healthcare
destination – attractive investment place !!!
Patient satisfaction & Competitive advantage.
Strategic Public - Private Partnerships.
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Is there something what makes
Germany more attractive as India,
Singapore, Dubai, Cape town …. ?
►
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better prices ?
better medical quality ?
better educated , trained and motivated medical staff ?
better equipped and designed hospitals ?
better international accredited and controlled quality ?
lower infection rate; lower mortality rate, lower complication rate ?
better service for patients and relatives ?
better understanding and tolerance for other cultures and religions ?
more attractive traveling facilities and airports ?
more attractive tourist destinations ?
more safety ?
What could be the arguments for going to Germany ?
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Good & bad cards
Some is matching – the most doesn’t fit !
Not matching are all these aspects which are related to
the German governmental organized Health Care
System.
Unchanged and a high reputation – also under
competitive aspects - have :
1. The high quality of excellent educated, trained
and further educated medical staff.
2. The German skills – hard worker, discipline,
organized, culture of thinking.
3. The ethical common understanding for patients
and their personal needs.
Result : The particular (doctor, nurses etc) YES ! ;
The system – NO !!!
Bad cards in the game !
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Consequences –
globalization of Health Care
The old clichés and methods of marketing to attract the “wealth Arab
private patients” to come to Germany for treatment by blue eyes and
fairy hair is a running- out model.
Far away from the global reality are the “ underdeveloped “ health care
systems outside of Europe or USA.
Strong and sustainable competitors are coming up in South Africa,
India, Thailand, Indonesia, Malaysia, Singapore, Dubai – and only a
question of time – from China with the same or better quality, lower
prices and much better customer focused service.
Health Care City projects are in real planning and under construction in
Shanghai, Delhi, Istanbul, Tripoli, Kuala Lumpur at present.
All these projects are designed to attract foreign patients, all are
focused on Health Care Tourism. There will be a surplus of capacities;
the global market will switch from a demand market to a supply
market.
The offers on these markets will be comprehensive with an
integrative approach of all fields of medicine.
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Health Care Tourism
- The integrative approach HEALTH CARE
PROVIDER
INDUSTRY
PLAYERS
PRIVATE CLINICS & DAY-CARE POLYCLINIC
GOVERNMENT
NURSING
SCHOOL
TERTIARY HOSPITAL
Academic Medical
Centre
CENTERS OF
MEDICAL EXCELLENCE
FURTHER
EDUCATION
MEDICAL COLLEGE
FACILITIES
FITNESS /
WELLNESS & REHABILITATION
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The reverse tendencies and
directions
Doctors
traveling to
regional
medical
centre of
excellence
with their
belongs:
Patients traveling
to regional
medical centre of
excellence, near
to their families
Knowledge
Experience
and Skills
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The effects
Doctors traveling to a pool of patients – more economic efficient.
Patients must not leave their social, cultural and religious
environment.
The money for treatment will be re-invest in the home country.
The doctors have the same or better working conditions and better
compensations.
The effect for education, further education and practical training for
the patients country is a very important added value.
The “network” between the local Medical Centre of Excellence and
the home countries ( organization to organization ) will be more
effective and sustainable than between persons ( doctors) to persons (
patients ).
The new approach will stop and turn over the “ brain train “ from
developing / developed countries to the Europe and the USA. The
young national countries will cut the bonds of dependence from the
West and will develop an own and competitive health care system.
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The SGH approach in practice
Sample 1: 2005
132 German C3/C4 professors are
working as locums in SGH
Hospitals at present ; they have
treated 8.230 patients stationary
and app. 14.800 ambulatory.
For treatment “ at home in
Germany “ they have encouraged
additional app. 950 patients.
They gave app. 530 lectures and
training courses for their
colleagues in KSA and Yemen
The “ lasting win-win effect “ from this kind of
cooperation : personal, political and economical
for both parties is much more important than to
attract patients to come to Germany;
Traditional Health Care tourism – no need !
Sample 2: SGH Hospital Sana’a (Yemen)
Yemen has spent app. 300 Mill US$ for
stationary treatment of Yemenites in
Jordan cause the lack of tertiary hospitals.
SGH has invest app. 50 Mio USD in this 300
beds hospital, the Government became a
Joint Venture Partner; no any patient has to
be send abroad; the money for treatment
will remain in Yemen;
Traditional Health Care tourism – no need !
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and more ….
First “ real” Joint Venture as PPP between the
private organized SGHG with governmental
German Universities in different structured
partnership.
German Universities are offering in defined
medical & managerial responsibility medical
performances as own braches under their brand
“ on the spot “;
Traditional Health Care tourism – no need !
Sample 4:
Sample 3 : SGH Dubai- Al Barsha
General Hospital + 6 Centre of Medical
Excellence; 600 beds
SGHG has signed last month a contract with an
USA global player in the medical industry to built
up a hospital chain of 10 Non-For-Profit Hospitals
in Africa with participation of the great development funds , charity- foundations and doctors
organization. Patients from Africa – if they need
advanced medicine help – must not more travel
abroadTraditional Health Care tourism – no need !
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This approach is our strategy
We invest in these countries from them we knows that patients have to
travel abroad to achieved “ state of art medicine “
We design , construct and equip in these countries hospitals which are
fulfilling international standards ( DIN 1469 ) by German Architects.
We bring in these countries German knowledge, experience and skills
by our German “Visiting Professors” as “ state of art medicine “
We add to our investments in medical care also investments in medical
education by German curricula and exchange program
We are doing that in KSA, Yemen, UAE, Sudan, Libya, Egypt, Ethiopia,
Turkey, Kazakhstan, Pakistan, and…
Other well known groups as APOLLO, WOCKARDT, NETCARE, CAPIO,
JOHN HOPKINS, HARVARD… have similar strategies – going to the
markets of future – and these are in Africa and Asia.
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We are looking for partners
to share our vision ……
…to help developing countries in Africa and Asia to improve a
national health care system which is tailored on the regional
needs and offering basic & advanced medical care in “ state of art
quality”, to suitable prices with an unlimited access for all – to
make these countries independent from each kind of the
traditional Health Care Tourism to going abroad - to Europe or
USA; except in very rare cases and circumstances, Insha Allah !
At least : To all Representatives of the Governments, Universities,
the medical & pharmaceutical Industry, the Finance Institutions Feel free to be invited to come with us and to contact us .
Not the “ tourism “ is the solution for the Health Care Systems ;
crossing borders COOPERATION is the most important term of
our common future for the sake of the mankind.
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A WORD OF THOUGHT
“It is not the strongest of the
species that survives, not the most intelligent,
but the one most responsive to change.”
Charles Darwin
F.Oel. GHORFA – 1st. Health Care Forum Berlin 2006
( 1809 – 1882 )
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