Post on 19-Jan-2016
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Curtis J. Schroeder
Group Chief Executive Officer
Bumrungrad International
The Global PatientHealth Reform Conference
Kuwait
15 March, 2009
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Summary
Opened 1980
Largest private hospital facility in SE Asia
Over 1.2 million patients treated each year
100 Clinics and Hospitals in 7 Countries
Bangkok: Asia’s first JCI accredited hospital, in 2002
Over 1000 doctors and 800 nurses in Bangkok
International management
More international patients than any other hospital in the world: 430,000 from 190 countries in 2006
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Regional Presence Regional Presence
10 Locations
South Korea
2 Locations
Japan
34 Locations
Taiwan
10 Locations
Philippines
1
Bangkok, Thailand
14 Locations
Thailand
2
United Arab Emirates
4
3
Philippines
19 Locations
Singapore
5
6
7
7 Locations
Malaysia
8
Presence in 8 countries, with 99 clinic and hospital locations
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It’s Time for…
Medical Tourism
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Myth #1
My country is a magnet for tourists, therefore we are ripe for medical
tourism.
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Myth #2
Medical Travelers select their destination based on the quality of
beaches, hill resorts or safari options.
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Myth #3
Medical Travelers are mostly affluent and happy to occupy your private rooms
and fancy suites at full price.
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Myth #4
Medical Travelers are happy to be leaving their home country for
healthcare and are forever appreciative for your hospitality.
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Myth #5
Once the medical traveler has beaten a path to your door, they are yours
forever.
A W
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1997-2001
2001-2006
Medical Travel
Transition
Medical tourism
• USA and Europe are centers of the healthcare universe
• Singapore the medical hub in Asia
• People travel for high end medical services
• Asian Economic Crisis• Price is now a factor• Emergence of alternatives to the
established players in Asia
• 911 & The Middle East Boom• Cosmetic surgery boom• Emergence of Thailand and India
as legitimate medical destinations
Evolution of Medical Tourism
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The Face of Medical Tourism
50+
Needs elective surgical service or specialty medicine
Unable to pay for or access healthcare in her home country
Looking for cheaper healthcare options
Willing to travel for significant savings
Selects doctors and hospitals that most resemble what she knows and trusts
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The Global Patient Provider
– One stop, multi-specialty
medical centers
– Internationally Accredited
– Immediate access to doctors
and medical services
– No technology or quality gap
– Competitive prices
– Service focus
– Capacity
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Hotspots of Medical Tourism
Source: Internal Deloitte Analysis
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Where are they coming from?Number of patients; percentage
Asia
Middle East
17
North America
Europe
Latin America
AfricaOceania
Note:The originating geography cut is based on 49,980 patientsSource:McKinsey & Company Provider interviews and data analysis
l
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Where are they Going?Percentage of patients
Source:McKinsey & Company Provider interviews and data analysis
EuropeEurope
OceaniaOceania
Middle Middle EastEast
Africa
North North AmericaAmerica
Latin Latin AmericaAmerica
87
1
26
27
4533
10
5
39
13
95
<1
>99
2
8
4
1
AsiaAsia
61
32
12
93
58
2
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The Middle East and Latin America represent 73% of patients seeking the most advanced technology
Specialty SoughtOriginating Geography
Number of patients; percentage
Latin
America38
Middle East
35
Europe
North
AmericaAsia 58
15
27
Other
Oncology
Cardiology
Specialty mix has significant spread, e.g.,
cardiology ranged ~0-50%;oncology ranged
~0-30%
Source :
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Drivers for Medical Tourism
Geo-Political Events
Lack of “Perceived Quality” & Service
Lack of Access
Cost
Family Microeconomics
– Non-insured Services (e.g. Cosmetics)
– Out-of-Pocket Healthcare Expenses Rising
– Burden shifting to the “Individual”
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Enablers
Media
Web Accreditation
Tourism
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2007-• 1st world managed care model
is prohibitively expensive
• Medical outsourcing seen as a
cost containment solution
Global Patient
Evolution of Medical Tourism
Pre 1997
1997-2001
2001-2006
Medical Travel
Transition
Medical tourism
• USA and Europe are centers of the healthcare universe
• Singapore the medical hub in Asia
• People travel for high end - high cost medical treatment
• Price is now a factor• Emergence of alternatives to the established players• Shift from sellers market to buyers market
• Emergence of Thailand and India as legitimate medical destinations
• Arab exodus• Cosmetic surgery boom
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The New Drivers
Geo-Political Events
Lack Quality/Service
Lack of Access
Family Microeconomics– Individual Burden
Global Competitiveness – Corporate World
3rd Party Payor survival
Government Budgets & Capacity
Self – Outsourcing– The Individual
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Will They Really Go?
“39% will go overseas to save 50% or more”
Source: Deloitte
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The Globalization of Health Care: Can MedicalTourism Reduce Health Care Cost?
Will Governments Outsource?
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New Enablers - the Global Patient
More complex and structural
– Standardization of quality and credentialing
– Portable medical records
– Medical information exchange platforms
– Doctor referral networks
– Legal and liability protection
– New insurance products
– Packages
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What’s At Stake?
6 million Americans by 2010?
15 million by 2015?
Source: Deloitte
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What’s At Stake?
US $10 billion by 2010?
US $35 billion by 2015?
Source: Deloitte
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SWOT Analysis
Making a Business Case for Medical Travel to MENA
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Strengths
Strong tourism infrastructure
Strong Government Support
Friendly Tax environment
Access to Capital
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Weaknesses
Cost & Price
Access to qualified personnel
Capacity– Medical– Hospitality industry
Regional Image
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Opportunities
Reversing outmigration
Re-direction of government contracting/outsourcing
Positive shift of reimbursement systems
Africa/ME
Russia
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Policy decisions to invest in healthcare infrastructure can reduce medical traveler flows
Healthcare investment can reduce flows
Oman
Abu Dhabi
Investment Result
Oncology center established in 2004 with specific goal of filling domestic radiotherapy goal
Cardiac surgery team with significant international experience set up shop in the emirate
Government funded oncology medical travel decreased 92% from 2004 to 2005
Government funded cardiac medical travel decreased 55% from 2004 to 2006
Significant healthcare investments are taking place globally in many countries
Source :
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Threats
Intra-MENA competition
Value-based competitors – Asia– Eastern Europe
Regional Stability
Inflation– Medical– Hospitality/Support industries
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Final thoughts…
Healthcare is moving from a locally to a globally delivered service
Medical tourism and outsourcing are consumer driven initiatives
Core Drivers: Quality, Access and Affordability
Widespread adoption depends on developing networks and connectivity between the 4P’s – patients, payors, providers and physicians
The Middle East can emerge as a regional player if the “value equation” can be addressed
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A World of Care