By 2019, the global medical tourism market is expected to reach $32.5 billion. It’s an industry that is experiencing rapid growth all over the world—and is patronized heavily by American patients. According to Research and Markets, the global medical tourism market was valued at $10.5 billion in 2012, and is expected to grow at a combined annual growth rate of 17.9% to reach that 2019 figure.
In 2012 alone, approximately 1.6 million Americans traveled to other destinations to seek medical services. It is hardly surprising that Americans travel far afield to get care; the cost of treatment in developing countries is in a range of 20% to 30% less than the cost of care in the United States. An expanding elderly population and favorable exchange rates are also factors in the growth of this market, according to Research and Markets.
And as the industry grows, so does regulation. As growing numbers of Americans travel overseas to get medical procedures, the question arises as to whether that care is comparable in quality and safety to that which they'd receive in the US. In an effort to protect US consumers, organizations are beginning to examine quality and safety of care offered by foreign medical concerns, and certify those that are safe. For example, The Joint Commission's international division now offers a Gold Seal of Approval to foreign organizations that meet its accreditation standards.
So where are those 1.6 million Americans going? Much of the initial wave of US medical tourism that began in the mid-2000s was focused on India; while India retains a large share of that market, the business has grown much wider since then. Here are three countries that are working to build their growing medical tourism business:
Australia:
Though the Aussies may not be the world leaders in medical tourism, they seem to be moving quickly. Tourism Research Australia reports that more than 10,000 medical tourism patients flew into the continent last year, double the amount in 2006. And this isn't happening by accident: Among other efforts, the Australian government is building the new $1 billion Victorian Comprehensive Cancer Center, scheduled for opening in 2015 in Melbourne.
United Arab Emirates:
Dubai, already a popular Middle Eastern tourism spot, is hard at work building its medical tourism reputation. For example, a new teaching hospital and associated medical college are to be built in Dubai at a cost of about $270 million. The 300-bed University Hospital in Dubai, which will be built in the technology park Silicon Oasis, is expected to create at least 4,000 jobs, and will be able to treat 700,000 patients a year. It should open in 2017. Dubai Health Authority is also working to position itself as a hot destination for dentistry, eye surgery, cosmetic surgery, general medical screenings, orthopedic surgery and sports medicine.
Guatemala:
According to one research firm, Guatemala's medical tourism business is at an embryonic stage, but it seems that players in its health system are working hard to change that. Medical tourism has been taking place in Guatemala for several years, but not in an organized way. Now, there's evidence things are on the upswing. In the past two years, private hospitals, hotels, airlines, individual professionals and other private companies have joined together to form a formal network, the Guatemalan Exporters Association, to allow for better organization in exporting healthcare services.