How will the challenging economic times in the US affect Medical Travel?

Similar to the economic challenges that are impacting the country faces, these forces will impact medical travel. While no one has a crystal ball, these are some thoughts on how this may play out going forward. 

Clients, both payers and patients, will want a better value for the money. The financial business landscape has changed significantly from less than a year ago. There are two most likely scenarios from my perspective. 

These very tough times will increase costs for the simpler transactional web based models for medical travel. The margins will squeeze tighter and tighter as the cost floor on these web based models making their environment difficult. Higher jet fuel costs, higher inflation, rising unemployment, a weakening dollar, and less available flights etc. will eat into their pricing structures. 

Those companies that have prepared themselves, anticipated these potential conditions and made adjustments to their operating models will fare better. Not without some difficulty. Those who are ready can create a growing client volume by best targeting clients, services and destinations. Markets are made by bringing these components together. 

The winners will need to add value to absorb or offset the rising costs and justify their pricing to begin with. These times make the potential client to expect more for their hard earned money. Our challenge is to deliver. Create value and return value. 

By focusing resources specifically, we can ensure that our strategies are more likely to succeed. It will not be good enough to be all things for all clients. There are some clear gaps in service that, if filled, will more than likely generate traffic. 

Tough times can also compel some interested parties to enter an arena, that they previously felt was not a viable option. Medical travel may become a forced market sooner than I had contemplated previously. Tightening belts can help companies and people to see the opportunities that lie ahead. 

Even in the most difficult of economic adversity, there are those who are willing and able to pay to improve their health. Who are they? Where are they? How do we find them? How do we communicate a value proposition that resonates within the client? That requires the crystal ball and skilled collaborative approaches.

In all challenges lie opportunity. 

This one and these times are no exception.

More to follow from Central America in the next few days!!

Jim McCormick MD

Premiere Medical Travel

818.917.6189