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Medical Tourism: A Booster Shot for Growth in Punjab


In recent years, medical tourism has emerged as a pivotal sector within the global healthcare landscape, allowing patients to travel abroad for high-quality and affordable medical care. India, particularly, has established itself as a prime destination for medical tourists. According to industry reports, the medical tourism sector in India is projected to reach $25 billion by 2025. This presents a unique opportunity for regions like Punjab to capitalize on their healthcare infrastructure and expertise.

Understanding Medical Tourism

Medical tourism refers to individuals traveling to foreign countries to receive medical treatment. The primary drivers behind this trend include:

Wide Range of Services: India offers a comprehensive array of medical services, including elective surgeries, dental procedures, cancer treatments, and traditional Ayurvedic treatments.

Cost Savings: Medical procedures in India can be 80% cheaper than in Western countries. For instance, a heart bypass surgery in India can cost around $7,000, compared to $100,000 in the U.S.

Quality of Care: Many Indian hospitals are accredited by international organizations such as the Joint Commission International (JCI), ensuring high standards of healthcare.

Graph illustrating cost comparisons of medical procedures between India and other countries (Source: Fortune India)

Current Landscape of Medical Tourism in India

India is one of the top destinations for medical tourists. Key statistics illustrate this:

  • Growth Rate: The medical tourism sector in India is projected to grow at a CAGR of 30% over the next five years.
  • Patient Demographics: In 2022, around 500,000 foreign patients visited India for medical treatments, with expectations of this number rising significantly.
  • Top Medical Procedures: The most sought-after treatments include:
    • Orthopedic Surgeries: 25%
    • Cardiac Surgeries: 20%
    • Cosmetic Surgeries: 15%
  • Source Countries: The majority of medical tourists come from the U.S., U.K., Middle East, and Africa. Approximately 25% of medical tourists are from the Middle East, 20% from the U.S., and 15% from the U.K.

Medical Tourism in India: Categories and Advantages

Medical tourism in India is a rapidly expanding sector, with the country emerging as a global hub for healthcare services. It can be categorized into four main types:

  1. International Patients for Surgeries:
    • This category involves patients traveling to India specifically for surgical procedures. The country’s medical facilities offer a wide range of surgeries, including orthopedic, cardiac, and bariatric surgeries.
    • On average, a heart bypass surgery in India costs around $6,000, while in the USA, it can exceed $100,000. This dramatic difference in cost, combined with high-quality medical care, is a major draw for international patients.
  2. Health and Wellness Tourism:
    • Patients seeking alternative therapies such as Ayurveda, yoga, and traditional medicine comprise this category. India’s rich heritage in wellness therapies attracts nearly 2 million international visitors annually.
    • Wellness retreats and Ayurvedic centers, especially in states like Kerala and Goa, offer comprehensive packages that combine treatment with relaxation and rejuvenation. This segment is growing, with the wellness tourism market expected to reach $4 trillion globally by 2025.
  3. Cosmetic and Reconstructive Procedures:
    • This segment has seen substantial growth as more international patients seek cosmetic surgeries at competitive prices. Popular procedures include rhinoplasty, liposuction, and breast augmentation.
    • For instance, while a liposuction procedure may cost around $12,000 in the USA, it is available in India for approximately $3,500, making it an attractive option for patients looking to enhance their appearance without the hefty price tag.
  4. Long-term Treatments:
    • This category includes patients with chronic conditions seeking long-term care, rehabilitation, and ongoing management of health issues. India is recognized for its expertise in treating conditions such as cancer, diabetes, and heart disease.
    • The country has advanced facilities and specialists for complex conditions, often at a fraction of the cost of similar treatments in Western countries.

Advantages of Medical Tourism in India

India presents numerous advantages that bolster its appeal as a medical tourism destination:

  • Cost-Effectiveness: Medical procedures in India can be up to 80% cheaper than in developed countries. For example, a knee replacement surgery costs around $8,000 in India compared to $50,000 in the United States. This affordability is crucial for patients from countries with high healthcare costs.
  • High-Quality Healthcare: Many Indian hospitals boast international accreditations such as the Joint Commission International (JCI). With over 50 JCI-accredited hospitals, India ensures that patients receive care that meets global healthcare standards. Facilities often feature cutting-edge technology and highly trained medical professionals, many of whom have been educated and trained abroad.
  • Rising Revenue for Hospitals: The medical tourism sector in India was valued at approximately $6 billion in 2023, with projections estimating it could grow to $25 billion by 2025. This growth is driven by an increasing number of international patients seeking treatment in India, contributing to 25-30% of the revenue for leading hospitals.
  • Comprehensive Healthcare Ecosystem: India is home to over 1600 nabh accredited  hospitals. The presence of established healthcare institutions, such as AIIMS, Fortis, Tata, Max, and Apollo, further enhances the quality and availability of medical service

The Potential of Punjab in Medical Tourism

Punjab is uniquely positioned to leverage the burgeoning medical tourism sector due to several key advantages:

  1. Strategic Location: Punjab’s geographical location, with proximity to major international airports like Chandigarh and Amritsar, makes it easily accessible for international patients.
  2. Robust Healthcare Infrastructure: The state boasts several advanced healthcare facilities, including:
    • Mohali Medicity: Equipped with modern medical technologies and offering a wide range of services.
    • Fortis Hospital Mohali and Max Super Specialty Hospital: These facilities are already catering to a growing number of international patients.
    • High Institutional Coverage: Punjab has a medical institution every 2.68 kilometers, with one doctor for every 900 persons and one nurse for every 350 persons. Additionally, the state hosts over 2000 state-run and private multi-specialty and super specialty hospitals, bolstering its healthcare ecosystem.
  3. Strengthening Healthcare Infrastructure: Earlier this month, the Punjab cabinet approved the creation of 1,390 additional posts for medical officers. This move aims to address the acute shortage of medical professionals, enhancing the quality and accessibility of healthcare services across the state. The decision to streamline the recruitment process through the Baba Farid University of Health Sciences, Faridkot, marks a significant shift towards efficiency in healthcare governance. Additionally, the government’s focus on upgrading healthcare facilities is evident from its initiative to revamp 40 secondary healthcare institutions, including community health centers and district hospitals. This effort, spearheaded by Chief Minister Bhagwant Mann in June 2023, aims to fortify the backbone of the state’s healthcare system, ensuring that quality medical care is within the reach of every Punjabi citizen.
  4. Innovative Healthcare Programs: A notable feature of Punjab’s healthcare overhaul includes innovative programs designed to tackle specific health challenges. In November 2023, the state launched a mental health intervention program for inmates across four major jails, addressing the often-neglected issue of mental health in correctional facilities. Along similar lines, the government’s “CM Di Yogshala” project, initiated in March 2024, underscores a holistic approach to health by promoting yoga across all districts. The deployment of 315 new yoga trainers to conduct free classes at the village and block levels is an effort to foster a culture of wellness and preventive healthcare.
  5. Government Support: The Punjab government has launched various initiatives to promote medical tourism, including:
    • Aam Aadmi Clinics: Punjab has established 165 new Aam Aadmi Clinics, enhancing the availability of primary healthcare services. These clinics have emerged as a flagship initiative of Punjab’s healthcare transformation, boasting over one crore beneficiaries as of February 2024. They offer a wide range of free medicines and diagnostic tests, ensuring that quality healthcare is a right for every resident of Punjab, regardless of their economic status.
    • Mobile Health Units: Launched to provide medical services in remote areas, ensuring that health services reach underserved populations.
    • Sehat Cards: These help identify eligible families for health schemes, improving access to medical services and insurance coverage.

Additionally, well-rounded government support includes:

  1. Annual Health Insurance of INR 5 lakhs to 75% of the population.
  2. Integrated Disease Surveillance Centers in all districts.
  3. Full Implementation of all centrally sponsored schemes, such as ICDS and PMMVY.
  4. High Health Outcomes: Punjab boasts life expectancy rates significantly higher than the national average and an infant mortality rate notably lower than the national average. All nutritional outcomes for the population are also significantly better than national standards, indicating a well-established healthcare system.
  5. Ecosystem & Ancillaries: Punjab ranks among the top 10 states in the Health Index Report 2021 by NITI Aayog, housing more than 2000 state-run and private multi-specialty and super-specialty hospitals. The traditional and Ayurvedic medicine ecosystem in Punjab includes over 11,000 registered Ayurvedic practitioners, and major production facilities with globally recognized accreditations further bolster the healthcare industry in the state.
  6. Medical Destination for Northern India & the World: Punjab is a medical hub for nearby states such as J&K, Himachal Pradesh, Uttarakhand, Rajasthan, Uttar Pradesh, and Madhya Pradesh. It also attracts medical tourists from CIS nations like Uzbekistan and Kazakhstan, as well as NRIs from the USA, Canada, the UK, Italy, and Germany. Major healthcare entities present in the state include AIIMS, Fortis, Tata, Max, Apollo, Grecian, EMC, NHS, and Ivy, further enhancing its medical landscape.
  7. Investment Incentives: To encourage investment in the healthcare sector, Punjab’s Industrial and Business Development Policy 2022 offers attractive incentives, including:
    • 100% Electricity Duty Exemption for 10 years up to 100% of Fixed Capital Investment (FCI).
    • 100% reimbursement of net SGST for 10 years from the date of commercial production, capped at 125% of FCI (land cost included).
    • 100% Exemption/Reimbursement from CLU/EDC charges and stamp duty.

Anchor units, defined as those with a minimum FCI of Rs. 250 Cr or a minimum direct employment of 1000, receive additional benefits such as an employment generation subsidy of Rs. 48,000 per employee per year for five years.

India’s Leadership in Medical Tourism

India has positioned itself as a leader in the medical tourism sector due to its unique advantages. According to a report by the Times of India:

  • Diverse Treatments: India is recognized for offering a wide variety of treatments, from complex cardiac and orthopedic surgeries to alternative therapies like Ayurveda and yoga.
  • Highly Skilled Professionals: The presence of highly qualified doctors, many of whom have trained in the West, adds to India’s appeal. A significant percentage of Indian healthcare professionals are fluent in English, facilitating better communication with international patients.
  • Infrastructure and Technology: India’s healthcare infrastructure has witnessed substantial investment in recent years, with many hospitals now equipped with state-of-the-art technology. This includes advanced diagnostic tools, robotic surgeries, and telemedicine services.
  • Patient-Centric Care: Hospitals are increasingly focusing on enhancing the patient experience by providing personalized care, accommodation options, and post-operative support for international patients.

Graph showing projected growth in medical tourism in India (Source: Fortune India)

Economic Impact of Medical Tourism

The economic implications of medical tourism in Punjab are profound:

  • Job Creation: An influx of medical tourists will create job opportunities in various sectors, including hospitality, travel, and healthcare services.
  • Investment in Infrastructure: Increased medical tourism can lead to significant investments in healthcare facilities and related infrastructure, improving the quality of services offered.
  • Foreign Exchange Earnings: The medical tourism industry could contribute significantly to Punjab’s economy, with estimates suggesting that the sector could generate over $1 billion in foreign exchange by 2025.

Challenges and Opportunities Ahead

While the potential for medical tourism in Punjab is immense, several challenges must be addressed:

  • Awareness and Promotion: There is a need for more aggressive marketing to raise awareness about Punjab as a medical tourism destination. Collaborative efforts between government agencies, healthcare providers, and travel agencies can enhance visibility.
  • Quality Control: Maintaining high-quality standards across all healthcare facilities is crucial to build trust and attract international patients.
  • Regulatory Framework: A robust regulatory framework is essential to streamline processes for medical tourists, ensuring their safety and satisfaction.

Government of India Initiatives for Medical Tourism

Graph showing rank of India in medical tourism  (Source: Fortune India)

To further enhance India’s position as a global leader in medical tourism, the Government of India (GoI) has launched several strategic initiatives:

  1. Heal in India Campaign: As part of a major push to promote medical value travel, the GoI introduced the ‘Heal in India’ campaign. This initiative aims to attract international patients by showcasing India’s healthcare capabilities and the diverse range of medical services available, from advanced surgical procedures to holistic treatments.
  2. Ayush Visa: The introduction of the Ayush visa caters specifically to international patients seeking specialized traditional medicine, including Ayurveda, Yoga, Unani, Siddha, and Homeopathy. This visa facilitates easier travel for those looking to explore India’s rich heritage of traditional healthcare practices.
  3. Strategy Roadmap 2022: The GoI has laid out a comprehensive Strategy Roadmap 2022 to bolster the medical tourism sector. This roadmap emphasizes enhancing healthcare infrastructure, improving service quality, and promoting India’s medical offerings through digital marketing and international collaborations.
  4. Champion Status for Medical Tourism: The GoI has introduced a Champion Status program to identify and support hospitals and healthcare providers that excel in providing medical tourism services. This status not only recognizes the efforts of these institutions but also provides them with access to various resources and incentives to further improve their services.
  5. The MVT (Medical Value Travel) Portal launched by the Government of India serves as a comprehensive platform for international patients, providing essential information about healthcare services, hospitals, and treatments available in India.
  6. Additionally, the GoI has introduced provisions for working capital to companies involved in medical tourism, ensuring that hospitals and service providers have the necessary resources to enhance their offerings and improve patient experiences.

These initiatives, coupled with Punjab’s strong healthcare ecosystem, position the state as an attractive destination for medical tourists seeking high-quality and affordable care.

Insights from the 2024 Medical Tourism Association Report

The 2024 Medical Tourism Association (MTA) report, “Medical Tourism Unveiled: Why Patients Travel and What Holds Them Back,” highlights key factors influencing medical tourists:

  • Trust: 97.2% of medical tourists prioritize trust in their decision-making, emphasizing the need for credible healthcare providers.
  • Accreditation: 63.3% of respondents consider accreditation crucial when selecting a medical provider, making recognized certifications vital for attracting patients.
  • Cost: While 28.8% mention cost as important, quality and trust are more critical factors in their choices.
  • Payment Security: 21.2% seek better payment options, highlighting the importance of transparent financial arrangements.
  • Post-Care: 19.2% emphasize the need for effective post-treatment follow-up, indicating a demand for ongoing care.
  • International Payments: 57.7% express concerns over international payment complexities, indicating a need for streamlined financial processes.
  • Hidden Costs: Unexpected expenses remain a significant barrier, as patients are wary of hidden fees.
  • Complications: Concerns about potential complications during or after treatment deter many from seeking care abroad.
  • Post-Treatment Coordination: Poor coordination during the post-treatment period can negatively impact patient experiences, stressing the need for effective follow-up systems.

Addressing these factors will help Punjab and India enhance their medical tourism appeal, ensuring a comprehensive and trustworthy experience for international patients.

Conclusion

Punjab stands at the brink of a medical tourism revolution. With its rich healthcare infrastructure, supportive government policies, and the burgeoning potential of medical tourism, the state is poised to emerge as a leading medical destination not just in India but globally. By capitalizing on these strengths and addressing existing challenges, Punjab can transform its healthcare landscape, contributing significantly to its economic growth and development in the coming years.

References:

  1. India’s Medical Tourism Market Growth
  2. Government of India Initiatives for Medical Tourism
  3. 2024 Medical Tourism Association Report Insights
  4. NITI Aayog Health Index Report 2021
  5. Healthcare Quality and Accreditation in India

Written by: Mr. Aman Mohan Sharma, Sr. Consultant

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