Medical Tourism: The Economist Article 8-16-2008

The Economist a prestigious business and politics magazine has a brief article on Page 12 that discusses the impact of Medical Tourism from several points of view. See Article Here

The dialogue discusses the impact on destination hospital resources and infrastructure. The contention is that the inbound traveler is adversely affecting utilization and redirecting resources from the desperate needs of the local population. There is another impact, the elevation of local economies and the active attempt to retain skilled talents in these countries to serve the growing population.

For instance, the Philippines is considering an offering to retain nurses to work in a hub of medical tourism in Cebu. The country sees the potential for this growth industry and needs to build a workforce to meet the needs of the patients. The influx of outside money is almost always beneficial to a local economy.

The article also cites a number from other recent publications that represents the lost revenue as a result of the siphon effect from domestic US healthcare by medical travel. This is a compelling example of market forces affecting price and demand curves. The price in some minds is excessively high in the US. A new competitor is entering the territory and that beneficial competition will affect pricing. That effect's positive or negative effects are centered upon where you as a business are positioned. As a consumer, you may well see prices begin to move downwards, but not enough to offset the margins that medical travel have to offer.

There is far more value available for those seeking medical travel abroad. Stay tuned!
As they say... May you live in interesting times.


Be Well, Travel Safe.

Jim McCormick MD
Premiere Medical Travel Company
818.917.6189