Constantine Constantinides from healthCare cybernetics looks at the “West's Revenge” - how healthcare services in Western countries are reacting to the potential impact of medical tourism on their domestic business. More competitive pricing and internal medical tourism may result in changes in patient flows.
It was inevitable that countries such as the USA, UK and even Canada would wake up and react to the potential loss of patients and revenues due to medical tourism. There is a significant political cost to any government that sees its citizens travelling elsewhere for treatment as a result of shortcomings in the domestic system. It’s a case of a “Health System Shamed”.
Governments and healthcare providers in such countries have been working hard to improve quality, reduce costs and become more efficient and competitive. The effect is not only to minimize the country’s overall healthcare expenditure but also to stem the outflow of patient to other countries. Countries regarded by many as “Sources of Medical Tourists” are reinforcing their position as “Medical Tourism Destinations”.
Furthermore, these same countries (the USA, Canada and the UK) until recently regarded as “net exporters of patients” are now again, promoting themselves as Medical Tourism Destinations (which they have always been).
As a result, we are seeing changes in the direction of patient flow - the “West’s Revenge”.
Our advice to those (in the notional “East”) wanting to remain or become Medical Tourism Destinations is to try and make the travel (tourism) element of medical tourism “wanting to” as opposed to “having to”.
Admittedly, this is a difficult task. So is making Medical Tourism a “want to” as opposed to a “have to”. Patients everywhere want affordable, quality healthcare on their doorstep, or at least in their own country. For many medical travellers, leaving their own country for treatment in another is a matter of last resort.
Countries previously regarded as “Sources of Medical Tourists” are themselves becoming “Medical Tourism Destinations” (the latest being Canada).
We are seeing changes in the direction of patient flow, to the surprise and maybe, even shock of the Medical Tourism Destinations in the “notional” East (i.e., those hitherto touting “cheaper and just as good treatment, with no waiting time”).
Think.....Who moved my cheese?
At healthCare cybernetics, we are champions and strong supporters of the expansion and development of the health tourism industry. However......we felt that medical tourism was unlikely to grow at the rate predicted because the “West’s Revenge” would step in to counter the imbalance of trade – and we are seeing this happen.
We also believed that, contrary to simplistic thinking, the recession would not result in a boom in “cheaper” medical travel – and this too has been borne out.
The West’s Revenge and the USA
In the USA, Obama’s “I have a dream” US Healthcare reform has come true, sooner than some had predicted or feared, although, we are unlikely to see any significant impact on medical travel in the near future. Nevertheless, in contrast to the bizarre logic (in our view) of some industry pundits, we are of the opinion that healthcare reform in the USA is unlikely to increase the number of US citizens going abroad for treatment.
In the USA, price competition has increased between healthcare providers in different cities and States stimulating intra-bound medical tourism.
Here are a couple of developments that signpost the “West’s Revenge”:
-
10 July 2009: “ Medical Travel Today is launching a new feature called DESTINATION USA. This column will profile USA-based centers of excellence that are attracting both domestic and foreign patients”.
-
Kiplinger’s Personal Finance, January 4, 2009: “You’ve heard of medical patients traveling abroad to save on everything from hip replacements to nose jobs. But how about heading to Wichita or Oklahoma City? More Americans are discovering medical tourism right here in the United States.”
The balance of trade in medical tourism
A shift towards a balance of trade in medical tourism was inevitable and is already happening.
Contemporary medical tourism has been primarily “low cost driven”, with most of the patient flow tending to be from West to East (or the “notional” West to East). And a considerable number of destinations and stakeholders enjoyed or foresaw a “good ride”.
But it was only a matter of time before local healthcare providers, seeing their patients tempted abroad, would react. And they are doing so, by becoming more competitive and “attractive”. And as predicted, we have begun to see changes in the direction of traffic or a slowing down in patient traffic to the notional East.
Dr Constantine Constantinides runs healthCare cybernetics, a “think and do tank” with a recognized competency in Health Tourism Integration and Development. His home base is on the island of Samos in Greece.
Comments provided below do not represent the views of IMTJ. Comments will be published "as is" and will not be edited by IMTJ staff. IMTJ is hosting these comments, and is not undertaking an editorial role in the content of these comments. However, it is editorial policy not to publish comments which have been submitted anonymously.
