Innovation in CSR (Corporate Social Responsibility) for Pharma Industry by Dr Prem - Express Pharma

Innovations in CSR for pharmaceutical industry | http://www.expresspharmaonline.com/20120229/pharmalife01.shtml

As companies scramble to counter negative public perceptions, CSR has taken on a new appeal. Dr Prem Jagyasi, a global consultant and expert and a chartered consultant, analyses the CSR trends in the pharmaceutical sector and focuses on innovative strategies for effective CSR as well as importance of CSR in retaining consumer loyalty

The most talked about topic in the Indian business world today is Corporate Social Responsibility or CSR. It is believed that in India, CSR is being practiced since ages. However, the point to discuss is that do we really interpret the term as done globally or are we confined to our own beliefs by relating it to philanthropy. When it comes to pharmaceutical companies especially, working beyond philanthropy is important and it is an ideal approach for success, as there is a perception among people that pharma and healthcare companies often get high profits through high price products/services and unethical practices by some.

To start with, there is only one prime responsibility of any corporate - to make it profitable. However, since a corporate operates within an environment and with the society, it is inevitable that it can continue functioning productively or profitably if the environment and society do not effectively battle challenges. Hence, corporates have always supported environment, society and causes in some or the other way.

Hence, one might believe that CSR is being practiced for ages in India, but the fact remains that many still confuse CSR with charity. Thus, to begin with, let us first get our facts clear that charity and CSR are two completely different concepts, but are unfortunately often mixed together and used simultaneously even in the corporate world.

Charity is as simple as doing something for free for the well-being of the society, whereas, CSR is strategic and much more complex. Hence, it is difficult to conceptualise and implement, but far more fruitful in terms of social benefits as well as ROI for corporates. E.g. if an individual donates old clothes to those less privileged; a company donates an old IT system to a school or a research institute; a corporate firm donates a certain amount of money to a local orphanage or old age home etc. are all examples of charity. On the other hand, CSR should preferably be linked up to the core business of the company i.e. while doing some good for the society the company actually does good for its business as well.

CSR is a strategy where corporates integrate social, environmental or other important concerns in their business strategies on volunteer basis. It should be a part of company’s overall business strategies. For the company, CSR is a beneficial business advantage with tax exemptions, while for the employees it acts as a moral boost for working in a company that values ethics and cares for culture.

Importance of CSR to pharma industry

Healthcare and pharma companies are often criticised by people as a consequence of escalating healthcare prices and increase in healthcare fraudulent cases. Collecting money from the healthcare policy illegitimately, commonly termed as Medicare or healthcare fraud is at its high in recent times. Thus, as mentioned before, there is a common public perception that pharma and healthcare companies profit immensely and most of the times through high prices/charges and unethical practices by some. Therefore, it is necessary that pharma and healthcare firms improve their image and strengthen their brand. As companies scramble to counter negative public perceptions, CSR has taken on a new appeal. It is today one of the finest ways to give back some good to the society and at the same time enhance business.

Some common benefits of CSR are: Increased sales and market share; Strengthened brand positioning; Enhanced corporate image; Increased ability to attract, motivate, and retain employees; Decrease operating costs; Increased appeal to investors and financial analysts.

Some facts that support the above observations are: 83 per cent of the people will trust a company more if it is socially responsible — USA TODAY

80 per cent of young professionals are interested in securing a job that has a positive impact of the environment — MONSTER TRACK Recruitment Survey

90 per cent of young professionals would prefer to work for an environmentally friendly employer — MONSTER TRACK

50 per cent of young professionals would turn away from an employer that lacked good CSR policies — Personneltoday.com

Looking beyond the conventional

For the pharma companies, CSR can be altogether a different approach, as they can apply their knowledge of science, expertise and technology to address critical healthcare needs. This can be achieved through innovative partnerships with governments, healthcare professionals and NGOs.

For example, for enhancing healthcare access, Abbott India recently entered into a partnership worth `7.6 crore with PATH, an international non-profit organisation that creates sustainable, culturally relevant solutions, enabling communities worldwide to break long-standing cycles of poor health. The partnership is to advance a cost-effective strategy to fortify rice to address micro-nutrient malnutrition. By sharing Abbott’s expertise in science and technology, this initiative aims to initially benefit five lakh people through public sector food distribution programmes. The company also supported 93 projects with Lifeline Express, a mobile diagnosis and treatment train, to provide access to medical services and treatment for around four lakh Indians in rural areas that otherwise have limited access to hospitals and qualified healthcare professionals.

Abbott worked closely with the Ministry of Health and Family Welfare; Ministry of Consumer Affairs and the Ministry of Women & Child Development to advance the safety and quality standards pertaining to food laws. It also developed and launched a flavoured syrup-based preparation of Divalproex for epilepsy patients who cannot take tablets.

Partnering in healthcare initiatives is another effective CSR strategy. Some of its benefits include: Promoting wellness of community; Developing relationship with community; Increasing brand loyalty and brand recognition; Direct consumer relationship through education programmes; Association with government bodies.

For the research-based companies, CSR is a fully integrated element of strategy and operations. Such companies undertake several activities related to healthcare, and thus there is a scope of an effective CSR in all the initiatives related to R&D including drug development and supply chain, clinical trials, etc.

For example, undertaking clinical trials is integral to the development of a new medicine. However, conducting clinical trials for chronic diseases such as HIV/AIDS presents an ethical challenge as life-long treatment is required. In low and middle income countries, it would be irresponsible for any company to sponsor an HIV/AIDS trial and allow patients to be initiated on to therapy, without assurance of continued supply of that drug following the study-end. Thus, company undertaking such trials should take the responsibility of life-long treatment of the patients undergoing such trials.

Further, access to healthcare is a global issue that needs to be addressed immediately and a lot of onus is on the pharma companies to take an initiative to address this issue. Some critical diseases like HIV/AIDS currently affect an estimated 40 million people worldwide and two thirds of these are in countries of sub-Saharan Africa. For a region facing innumerable societal challenges – inadequate health services, lack of infrastructure, a shortage of skilled healthcare workers, to name a few – it is no wonder that the global HIV/AIDS community calls for free drugs and for companies and individuals to donate funds as immediate fixes to such a pandemic problem.

In one such initiative, Roche’s technology transfer programme few years back enabled it to share its technical expertise with local generic manufacturers in the least developed countries and sub-Saharan Africa. Roche provides eligible manufacturers with on the-ground technical guidance to support the production of saquinavir, a Roche HIV medicine. Through this initiative, the company is helping to strengthen and expand manufacturing capabilities and capacities across Africa to begin to produce their own medicines in the future.

Employee engagement for developing CSR

For developing effective CSR strategies one needs to first understand the local scenario and analyse the trends witnessed. One needs to identify key challenges, which can be addressed effectively through CSR. Aligning corporate values, offerings and brand strategies is important for developing CSR strategies. Another important aspect for successful CSR is employee engagement.

Involving employees right from the beginning is advisable. Role of employees should not be merely limited to execution, but their inputs should be valued and can be incorporated right from the brainstorming session that determines areas that need to be prioritised to the roadmap that needs to be followed. This helps in inculcating pride in employees for the company, and making them more sensitised participants while contributing towards the CSR objectives of the company.

Conclusion

To conclude, one can say that there is a need for pharma companies to have focused CSR initiatives for social development and economic growth of the country. Pharma companies need to contribute towards society by involving themselves in activities in the field of healthcare, education, and other environmental and civic initiatives, and should try to delineate these activities from business. CSR is a good initiative to drive growth and empower people but it should be driven by ground realities. Pharma and healthcare companies need to look beyond conventional approach to develop effective CSR.

Investing in Healthcare in Difficult Economy - A recession proof business opportunity of all time

It is increasingly getting difficult to find good market news lately. The daily headlines show a slowing economy, shaky government finances, and declining stock market. This is not a problem confined to a particular country, but a trend observed across the globe. When it comes to investing in such difficult times, though investors have no control over the financial and economic crisis, they can control their own portfolios by investing wisely in sectors, which would benefit from the trends within the economy and are least affected by the global economic slowdown. This article analyzes the trends triggering investments in one such sector - the healthcare sector, which undoubtedly is one of the businesses performing considerably better than many other sectors in current market scenario.

Investing in healthcare in difficult economy

One of the effective ways to find which industry to invest in difficult market environment is to analyze the changes taking place in the local and global economies. One can then look for those industries, which would benefit from these changes. Say for example, one of the biggest lifestyle changes observed across the world today is the ageing population and a steep increase in lifestyle disorders. Further, the average income in the developing world is rising strongly, and this looks set to continue for quite a while. Also, there is an increasing awareness amongst the people regarding health & wellness, health insurance and other health related matters. Even the most developed regions in the world are today focusing on revamping their healthcare policies.

These are the trends hardly affected by the rise and fall of market. The fact that people fall ill and need care will not be changed whether there is an economic recession or not. All this points towards one important factor i.e. irrespective of the market conditions, people would continue investing in healthcare and thus healthcare is one of the sectors along with Pharma, which is set to immensely benefit from the above mentioned trends.

Over the past three months, the healthcare sector has performed considerably better than any other industry, making it the one solid investment since the beginning of the year. This is hardly surprising given that the healthcare sector has a very interesting profile in the current uncertain market scenario. Majority of pharmaceutical companies have shown strong balance sheets of late and offer attractive yields. The industry is supported by strong R&D, innovation and constant up-gradation of technology. This has restored the ‘growing curve’ of the sector.

Affluence of the developing world

Affluence of the developing world is another trend powering the investments in the healthcare sector in developing countries. This represents a significant opportunity for companies with a firm presence in emerging economies. Take for example India, which has all the potential to become the next healthcare destination in near future. Given the growing demand, the emergence of reputed private players, huge investment needs in the healthcare sector, increasing healthcare costs in the developed nations and thereby growing need for outsourcing in recent years, there has been growing interest among foreign players as well as non resident Indians to enter the Indian healthcare market. There is also growing interest among domestic & international financial institutions, private equity funds, venture capitalists, and banks to explore investment opportunities across a wide range of segments (pharmaceuticals, medical devices, hospitals, etc) in the Indian healthcare sector. 

In the hospitals and medical devices segment alone, there are reportedly at least 20 international players competing to have a share in the Indian healthcare market. These players are entering mainly through joint ventures with Indian companies and also through technology as well as training collaborations. Not only India, but other countries like Malaysia, Thailand, Singapore, etc have also shown considerable opportunities for investment in healthcare.

The Middle East healthcare sector is expected to grow as the need for investment in facilities and services continues to escalate. The region is considered to have a high population of diabetes, obesity, cardio-vascular diseases, and increasing cancer diseases, which has led to an increase in the demand for better healthcare services. In Gulf countries, estimated 120 - 140 hospitals are planned for construction with a total bed capacity of more than 30,000 beds. Thus, it provides massive opportunities to those interested in investing now to enjoy impressive returns in future.

However, the growing presence of corporate players and foreign investors in healthcare sector, especially in the developing nations, is not yet well understood in terms of its current status as well as its implications for the healthcare system at large within these nations. For example, while the emergence of private hospitals, foreign funding & tie ups, etc can have many positive implications, it may also result in higher costs of healthcare and greater segmentation between the public & private health sectors. Thus, it is important to better understand the nature and extent of foreign investments, especially in times of such unstable economy.

Flourishing medical tourism

Escalating medical costs in the West have always been a cause for concern. One beneficiary of this trend is the medical tourism industry. However, with a majority of medical tourism revolving around dental and cosmetic care, this sector was not spared from recession. The year 2010 saw a comeback as tourists resumed their visits outside their home geography to other countries for these procedures. This rebound in medical tourism saw hospitals enter into alliances with their counterparts across the world to more effectively manage the patients.

Some of the key trends enhancing medical tourism investments in developing nations include -

• ·         Increased healthcare costs in developed nations
• ·         Availability of hospitals with International accreditations  
• ·         Quality of the treatment provided
• ·         Cost –effectiveness
• ·         Large pool of well-qualified medical professionals
• ·         Possibility of on-line diagnosis especially for post care and future consultations
• ·         Strong pharma presence gaining worldwide recognition
• ·         Alternative medicine practices like Yoga & Ayurveda gaining momentum on foreign shores
• ·         Several tourists destinations attracting huge amount of foreign tourists 

Countries predicted to find increasing investments in medical tourism in future include India, Malaysia, Thailand, Singapore etc.

Not completely recession-proof

When it comes to investment, though healthcare and pharma industries are less affected by the economical downfall, the unstable economy does have impact on the spending power of people, thereby affecting their overall spent on healthcare especially on cosmetic products & procedures, nutraceuticals, wellness programs etc.

Thus, sectors like dietary supplements, cosmetic surgeries, few dental treatments, etc do get affected due to economic instability. Sometimes surgeries not requiring immediate medical attention are postponed and in some cases even a visit to a doctor is prolonged when recession hits day-to-day life. The scale of the current recession had a similar impact on healthcare spending and purchasing behavior. Many hospitals experienced losses in their investment portfolios, a rise in uninsured patients and a decline in elective surgeries leading to salary/ job cuts.

However, these downturns are temporary. Those who have serious health issues like cancer, heart disease, chronic diseases, and emergency medical situations will have to seek healthcare whether they can afford it or not.

Sectors to keep eye on

It has been clearly suggested that the healthcare sector will transform into a major sector that will fuel the economic growth and largely contribute to increased revenues in future. The industry encompasses pharmaceuticals, medical devices, medical equipment, insurers, hospitals etc. Each offers its own unique investment opportunities and challenges.

The key sectors which have potential to develop into high return investment sectors in healthcare include healthcare infrastructure, medical tourism, medical equipment & technology, pharmaceuticals amongst others. The most compelling long-term theme as a healthcare investor is tapping potential in research & development and investing in advances in science & medicine.

Sustainability in healthcare - A step towards green revolution by Dr Prem

With the global population increasing at an unbelievable pace, energy consumption is projected to go up by 200 per cent. If the projections for the sustainability trends are anything to go by and with rampant environmental degradation along with depleted energy & natural resources, the world would need another planet to sustain life on earth by 2050. If appropriate measures are not taken today, sustainability will remain a distant dream. With various industry sectors across the globe taking notable efforts towards achieving green revolution, this article analyses the sustainability trends and issues in the healthcare industry with focus on sustainable architecture.   

Sustainability is a robust concept that has proven its worth across a range of different industries including energy, agriculture, forestry, chemicals, construction and many others. Talking about the healthcare industry, there are evidences that the current health systems of nations around the world will be unsustainable if revolution does not take place in next 15 years. There is ample scope of conserving energy in the healthcare sector. However, a number of energy conservation opportunities have remained untapped due to various reasons. The key barrier has been low awareness among the healthcare professionals and limited availability of in-house expertise to implement energy saving plans. Good energy management structure can bring in not only an energy efficient culture within the hospital but also provide substantial reduction in expenses without compromising on the quality of healthcare delivery.

Benefits of Sustainable Healthcare

The construction of conventional buildings consumes billions of tons of raw materials and a tremendous amount of energy, generates significant waste, as well as contributes toxic emissions to the air. Considering the impact this has on the environment and thereby on the human health, there are significant opportunities to improve environmental quality and human health through encouraging the concept of green buildings. Green buildings conserve natural resources, generate less waste, use less toxic chemicals and provide healthier space for occupants.

Apart from the environmental benefits, there are many financial benefits of incorporating sustainable designs. One area of financial savings obviously relates to decreased demands for energy and water.

Further, materials used for sustainable or green buildings might be a little costly than those used for the conventional buildings (due to their recent introduction and relatively limited initial market), but these materials have benefits above and beyond their sustainable features in terms of maintenance, life span etc. It is learnt that standard particle board millwork, doors, fiberglass insulation, paints, adhesives & sealants are all commonly made with urea formaldehyde and other volatile organic compounds (VOCs) that are known or suspected carcinogens or asthma triggers. Hence, agricultural board cabinets (wheat board & strawboard) and recycled denim for insulation, along with low-VOC paints and adhesives are materials to be opted for. Building materials that contain recycled items and that are themselves recyclable are becoming more readily available.

In past, there have been cases where many sustainable building strategies have yield worthwhile social and professional benefits. For example, some reports suggest health features of green buildings like improved access to daylight. The reports further say that access to daylight improves worker productivity. Studies also indicate that daylight may decrease medical error rates, a reduction which can save lives and also the costs associated with medical errors.

Designing & Building Green Architecture

Buildings are classified as certified, silver, gold, or platinum depending upon the number of points they acquire within six building components which include:

1. Sustainable Sites

2. Water Efficiency

3. Energy & Atmosphere

4. Materials & Resources

5. Indoor Environmental Quality

6. Innovation & Design Process

Within each of these categories, there are a specific number of credits available via many subcategories, which are important parameters for a building to get a green certification.

Green Building May

• Use building materials and products that contain post-consumer recycled content.
• Utilize rapidly renewable materials such as bamboo flooring or genuine linoleum flooring.
• Have a STP (sewage water treatment plant) and rain water harvesting treated & reused for either gardening or cooling towers of air-conditioning.

According to Pricewaterhouse Cooper (PwC) study report, focus on design should be a priority while building a hospital. When the design is developed to ensure that it can be promoted as an environmental friendly, nurses and other personnel will be more motivated to be a part of it. Also, it has valuable impact on the minds of the patients.

Employing environmentally sensitive designs can lead to savings of the order of 20-50 per cent. Initial investment cost may increase by 10-15 per cent. However, it is important to look at this incremental cost in relation to the full life cycle cost. Typically, over its life cycle, the operating cost may work out to 80-85 per cent of the capital cost while the incremental cost is a one-time cost. Due to substantial reductions in operational cost, the total cost of ownership of green buildings is usually lesser than conventional buildings.

On regulatory front, the US Green Building Council (USGBC) has introduced its latest green building rating system- Leadership in Energy and Environmental Design (LEED) for healthcare. The rating system guides the design as well as construction of both new building and major renovations of existing buildings, and can be applied to inpatient & licensed long-term care facilities, medical offices assisted living facilities and medical education & research centers. The LEED green building rating system encourages sustainable green building and development practices through an internationally acceptable set of criteria.

Other nations have their own rating and certifications systems as well. For example, in India it is Energy Conservation Building Code (ECBC). Also, with the introduction of the Energy Conservation (EC) Act 2001, the Government of India in recent years has been promoting energy efficiency in different industrial and commercial sectors.

A Case Study

Manhattan’s Bank of America Tower at One Bryant Park is one of America’s pioneering Platinum LEED towers. The tower not only uses significantly less energy and water than a conventional high-rise, but there are some features that specifically promote health as well.

The design of the building makes it environment friendly, using technologies such as floor-to-ceiling insulating glass to contain heat and maximize natural light, and an automatic daylight dimming system. The tower also features a grey water system, which captures rainwater for reuse. Bank of America states that the building is made largely of recycled and recyclable materials. Air entering the building is filtered, and the air exhausted is cleaned as well. Bank of America Tower is the first skyscraper designed to attain a Platinum LEED Certification.

The tower is constructed using a concrete manufactured with slag, a byproduct of blast furnaces. The mixture used in the tower concrete is 55% cement and 45% slag. The use of slag cement reduces damage to the environment by decreasing the amount of cement needed for the building, which in turn lowers the amount of carbon dioxide produced through the normal cement manufacturing process.

Temperature control and the production of some of its energy are accomplished in an environmentally friendly manner for the tower. Insulating glass reduces thermal loss, lowering energy consumption and increasing transparency. Carbon dioxide sensors signal increased fresh air ventilation when elevated levels of carbon dioxide are detected in the building.

Conditioned air for the occupants is provided by multiple air column units located in the tenant space that deliver 62 degree air into a raised access floor plenum. This under floor air system provides users with the ability to control their own space temperature as well as improving the ventilation effectiveness. When building churn occurs, workstation moves can be performed easier with lower cost and less product waste.

The cooling system produces and stores ice during off-peak hours, and allows the ice to melt to help cool the building during peak load, similar to the ice batteries in Hotel New Otani in Tokyo, Japan. Ice batteries have been used since absorption chillers first made ice commercially available 150 years ago, before the invention of the electric light bulb.

The tower has a 4.6-megawatt cogeneration plant, which provides part of the base-load energy requirements. Onsite power generation reduces the significant electrical transmission losses that are typical of central power production plants.

Overcoming challenges through sustainability

Cost of resources that the healthcare industry uses is rising. Fuel & coal prices have witnessed a rising trend. Water scarcity is a reality in many locations. Increasing awareness and rising stakeholder expectations on clean and healthy environment requires phasing out of toxic chemicals as well as the use of more benign alternatives in construction. With relaxation of duties in the finance budget on LED, solar and wind components, energy efficiency and use of renewable energy are likely to take off at a much faster rate.

No country has got all the healthcare answers. Whilst different health systems inevitably reflect local and political realities, there are valuable lessons to be learned from observing how other health economies make things happen and learn from it. Government should encourage Green buildings and all the hospitals & healthcare corporates should have in-house experts helping them to implement realistic sustainability plans.

On the concluding note

On the concluding note one can say, investing in green buildings in the healthcare would make sure that fulfilling the healthcare needs of our citizens would not impose additional burden on nature and would clearly be a win-win proposition for present and future generations. The industry needs to collaborate worldwide and all the nations need to share their best practices and plans, which would make a difference. There is no reason why individual countries and hospitals need to go through the same hurdles, make the same mistakes or learn the wrong way. The green revolution is possible with the world coming together to save our beloved planet Earth and the life of future generations as well.

Global Healthcare Reform

When recession hit the world few years ago, it was believed that healthcare & pharmaceutical industries were amongst those few industries, which remained unaffected or least affected by it and reported positive growth when others struggled to survive.

However, today when economic downturn continues to haunt the world economy, it has equally pressurized the health policy makers across the world to bring down the healthcare cost and reform their healthcare systems. Healthcare reforms have become important than ever before even in the most developed parts of the world.

Trends driving healthcare reforms

The reforms that take place in health systems across the world obviously vary depending upon various trends within the nation. They are driven by economy of the country, average per capita income spent on healthcare, healthcare costs & expenditure, functioning of insurance industry within the nation, government support to the healthcare sector, research & development etc.

As witnessed by the large variety of different healthcare systems across the world, there are several different pathways that a country could take while making reforms. For example, the physicians in Germany have more bargaining power through professional organizations (i.e. physician associations). This ability to negotiate has an impact on reform efforts. Germany makes use of sickness funds, which citizens are obliged to join but are able to opt out if they come into very high income bracket. The Netherlands used a similar system but the financial threshold for opting out was lower.

The Swiss use more of a privately based health insurance system where citizens are risk-rated by age and sex, among other factors. The US government provided healthcare to just over 25 per cent of its citizens through various agencies, but otherwise did not employ a system. The developing countries face innumerable challenges in accessibility & affordability of healthcare and thus the reforms are driven by the fact that affordable healthcare must be made available to the common man.

While developing countries face numerous challenges to streamline their health system, the developed nations are facing the challenge to reduce the rising healthcare cost. In developing nations, regulatory reform is emerging as people are demanding quality healthcare at a reasonable and sustainable cost. Government and health leaders are looking for cutting-edge solutions that do not repeat the mistakes of mature systems, which focused on outcome, keeping aside the rising costs. Thus, the proposed reforms are concentrating on reducing the cost of healthcare, along with improving outcomes. The reforms are also driven by technology that is eroding traditional models. The technology transfer is happening across all the levels globally. Reforms are taking place in the insurance sector as well.  

One key component to healthcare reform is the reduction of healthcare fraud. In the US and the EU, it is estimated that as much as 10 per cent of all healthcare transactions and expenditures may be fraudulent. Recognizing a need to curb such bad practices and with an aim to bring maximum people under the insurance cover the US government recently passed the healthcare reform bill.  

The impact of Patient Protection and Affordable Care Act

In March 2011, the Patient Protection and Affordable Care Act was enacted by President Barack Obama, providing for the phased introduction over four years of a comprehensive system of mandated health insurance with reforms designed to eliminate some of the worst practices of the insurance companies.

The move has delighted the people in US, as under the legislation, health insurance in US will be extended to all its nationals, new taxes will be imposed on the wealthy and all non-complying insurance practices will be outlawed. It is expected that the reform bill would expand the coverage to 32 million currently uninsured Americans. This revolutionary reform in US is expected to have a significant impact on other nations as well. It has brought a lot of cheer among offshore healthcare providers, especially for the nations, which provide outsourcing services.

India for example, sees a huge opportunity in the US market in future. Indian offshore healthcare providers expect to receive significant orders from various healthcare institutions from US. For small and medium enterprises, this could be heartening news. The gain will be gradual, but as more Americans are covered under some sort of health insurance, the administrative burden would increase and Indian healthcare offshore providers will benefit immensely. Most of the opportunities lie in medical coding, medical billing, medical claims review, claims follow up, collection management, and other backend services. This in turn would also lead to increase in employment opportunities.

Need to focus beyond affordability

The biggest obstacle in the healthcare sector is a lack of access to effective and appropriate medicines. Lack of access to medications is the common denominator in all the nations of the world, regardless of whether their healthcare systems are public or private. Healthcare reform must begin with reform in the way in which medicines are created and, accordingly priced, which requires a series of improvements at Research & Development (R&D) level. 

Thus, along with curbing the healthcare fraud occurrences and making healthcare affordable, R&D is another important segment where focus of most of the policy makers should be on. If one plans to research and develop new products or services, the information for the same should be readily available or accessible for free and one should be eligible to apply for financial support - an R&D grant - or for R&D tax credits. Researchers should be encouraged by the government and private sector alike for developing continuous innovations in the field of medical science.  

The reforms should support the advancements in science at all the levels. Today, advances are being driven by genetics, the area that is transforming the medical sector and innovations. This new science will be the core of healthcare that is more personalized, predictive and preventative, enabling the focus to shift from treatment of diseases toward an emphasis on prevention, wellness and health.

The reforms should also focus on development & up-gradation of technology and infrastructure without which any healthcare system would fail to deliver required results.

Impact of reforms

In developed economy, healthcare reform is needed firstly because healthcare costs are skyrocketing. In 2011, the average cost for family of four increased by 7.3 per cent to $19,393 in US. That's nearly double the cost just nine years ago. As per the estimates, by 2030, payroll taxes will only cover 38 per cent of medicare costs. The rest will contribute to the federal budget deficit.

The reform is further needed to improve the quality of care. It has been estimated that chronic diseases cause 70 per cent of all US deaths, and affect 45 per cent of all the Americans. As the population ages, the incidence of these diseases will grow rapidly. Each year, the cost of treatment totals $1.7 trillion, representing 75 per cent of all healthcare revenue spent. This cost can be lowered through disease prevention and wellness programs.

Also, 25 per cent of Americans have little or no health insurance to cover their costs. Not only is this bad for them, it's also bad for the economy. Reforms in healthcare are also needed to stem the economic costs of healthcare fraud.

In developing nations, reforms can develop on sound principles on the basis of the learning of all available systems, the strengths and needs of individual nations. For example in India, the population is getting increasingly health conscious. They need to be properly directed towards maintaining their health, in the same way as they have career and financial plans. Also, 65 per cent of Indian population lives in rural areas while only two percent qualified medical doctors are available in these areas. Indian healthcare today is urban centric. It needs to be reformed through providing good medical facilities in rural areas and also increasing the number of doctors, nurses, paramedical staff etc. Indian healthcare system should start from preventive care through nutrition. Reforms must provide impetus to lift the population, which is at the bottom of the pyramid.

Conclusion

While reforms in developed nations focus on reducing costs, fighting chronic disorders and increasing number of people under insurance cover; the developing nations need to reform their healthcare system through policies, medical infrastructure & technology, education and realization of right nutrition to lifestyle management. Reforms would also be driven by the fact that nations across the world are fighting fraud in health insurance. Acute & lifestyle diseases over time are also expected to be at reactive end of the reforms soon.

To conclude, health systems worldwide are working to develop a patient-centric health economy that is consumer-driven, as seen in other industries. Consumerism will transform how healthcare is directed, delivered and financed in the coming years.

Healthcare Outsourcing - Tactical Management in Healthcare industry

Introduction

Every industry aims to shape up to generate revenue, decrease the cost involvement and still be profitable enough to maintain a good image in the market. It requires assets, which are extremely powerful, which helps to focus on the main aim of the business. A properly managed HR, well equipped workstations, etc. are some of the supporting assets needed to be efficient. So many wishes to be fulfilled at one particular time are hard to obtain but certainly not impossible. Outsourcing is the one-time solution for any of the purposes above mentioned. It not only gives access to many paybacks but also provides economic benefits. Outsourcing is not a new term, but it has been used widely and has gained recognition only in recent years. Healthcare industry is no lacking in this system. Outsourcing in Healthcare industry is on its verge to emerge as an industry in itself.

What is outsourcing?

Outsourcing in a very simple way can be described as reassigning work to another organization that is capable of doing the needful in an expected manner. Such a project is given by the client to the vendors/ service providers to get the work done. Outsourcing is a form of contract for particular services.

Earlier, these services were not contracted on a large basis as the employees worked out to fulfil the demand. Outsourcing has been widely accepted as a necessity in today’s generation.

What is outsourced?

Call centre services, maintaining records of the employees, etc. are some of the functions, which are generally outsourced. Healthcare industry usually outsources Housekeeping, maintenance, Security, Ambulatory services, IT, Laundry services and nurses also.

Need for outsourcing

There are various self-explaining reasons why outsourcing has become a necessary part of almost every organization. However, the major one can be convincingly expressed by saying that outsourcing gives admission and not proprietorship.

As rightly said, centralised management does not function as good as decentralised management does. Therefore, giving out any non-core department along with the decisive powers to the vendors reduces the burden and also helps the client to concentrate on the core business.

 Other reasons of outsourcing are that it helps the organization to be economic for core business. As the non-core job is transferred to the service providers/vendors, they do it in a very low cost as the economic condition in which they function is totally different than a healthcare organization, and the overheads are highly negligible. This is because the vendors have tools, facilities and employees specially designed and designated for that particular job and the cost incurred in training is not involved.

Outsourcing not only saves money but also the most precious asset- time. By handing over the non-core business to vendors, the company and its employees have an ample amount of time to work on the more vital subjects for which they have been trained and are specialised.

Significance of outsourcing

It does not make sense when a particular resource is bought with some intention by making reductions in the treasury and is not been used to its fullest rather some low-interest work is carried out. This not only is the waste of money but also the waste of the capacity and capability of that resource. Therefore, being independent does not sound economically worthwhile. This can be explained by Opportunity cost.

It can be said that the resources are not been fully utilized to its maximum if the Healthcare organization spends all the resources in job, which are not meant for it. Outsourcing helps to get the things required readily available that too in a very low cost. As the outsourcing service providers are expert in it, an outcome, more than expected, is obtained.

Benefits of Outsourcing includes but not limited to:

• reduce costs,

• focus on core business processes,

• improve services,

• enhance skills,

• reduce time to market

• increase the overall competitive advantage.

Tactical Outsourcing

As we have seen so many advantages of Outsourcing, it will be worth discussing about Tactical Outsourcing. If Outsourcing is effective, Tactical outsourcing is efficient. It involves capturing the skillful resources which are proficient in getting the work done that too in a minimum cost.  Thus, these resources can be helpful to bring out improved outcomes. Tactical outsourcing basically deals with the Skill, Information, Aptitudes and Methods used and followed in an organization.

Importance of Outsourcing

The principal purpose why healthcare organizations are more and more involved in outsourcing non-core business is that it saves the cost. The factors that affect outsourcing in monetary ways are:

• Access to assets  and information: Outsourcing in another sense means to utilize resources and skilled personnel or valuable information, which is readily available in the market(vendor)

• Emphasis on main capabilities: Contracting not so important jobs like maintenance and housekeeping, etc. helps the employees to concentrate more on the most important subjects related to the organization.

• Budget: The organizations outsourcing non-core job incurs less cost than that which does it all by itself.

Anti-Globalization

What is Globalization?

In order to talk about Anti- Globalization one should understand Globalization in depth. Simply put, Globalization is exchange of variety of things right from human beings to technology, equipment, art, entertainment, healthcare etc. across national borders, reaching out many other countries for trade, business, and expansion or for that matter any said reason which can be beneficial for the exchanging countries and its population.

What is Anti-Globalization?

Once we know what is Globalization it will be easy to understand Anti- Globalization. People who are against Globalization are anti-globalists and the process is called as Anti- Globalization. Anti- Globalization is a widespread measure to discontinue the inclination of globalization and its possible destructive effects, and to improve uncontrolled entrepreneurship. In other words, Anti- Globalization can be called a grassroots movement to counter the trend of globalization and its harmful effects, and to reform unbridled capitalism.

Need of Anti- Globalization

Globalization as many positive aspects but it is followed by many negative characteristics too. If not properly structured, Globalization can and has affected Commercialization in various ways. The alarming situation that has arisen due to uncontrolled globalization is the critical situation of local market within the country. As Globalization increases, import and export of raw as well as finished products continues to take speed. This impacts the local manufacturing companies as there sales decreases due to import of foreign products. More number of populations tries to get employed in multinational companies thus leaving the local companies with less number of talented human resources. This leads to declined growth rate and less productivity in national companies.

Apart from business point of view, the culture of the country is also affected. The impact of westernization has deeply hampered less modernised countries. This again calls for Anti- Globalization.

 Significance of Anti- Globalization

Significance of Anti- Globalization can be cleared explained through economic point of view. Before going Global, every nation must understand its economic condition and where it stands in global market. It is not recommended to avoid globalization but it have to have certain limitations. Some points shall be taken into consideration before going global. Understanding own economy is equally important to studying the global economy and global market. Before forming a proper structure of Globalization, nurturing and nourishing existing economic condition of the nation and its population is a crucial step. It is recommendable that a business going global shall first be able to sustain itself and its nation’s government and population. If the local population and business is hampered because of Globalization, then there remains no way which can prevent Anti- Globalization movements.

Anti-Globalization and Healthcare system

Healthcare industry is one such industry which has gone global since a long period of time. Some nations do not promote Healthcare Globalization while some actively encourage it. Many of the leading Pharma companies, biomedical equipment firms, Insurance dealers and hospitals have set up their branches in various other nations and run long chains to provide medical facilities worldwide.

Anti-Globalization comes in the Healthcare picture because no nation will like to see some other country taking over their own healthcare system.

The impact of Globalization can be seen in a undesirable manner by dividing society into rich and poor classes thus giving fractional treatment. The global healthcare organizations focus on rich class to upsurge their revenue margin and as a result the low pay group remains unprivileged regardless of the fact that they do not receive even primary care. Other anti- globalization essentials are the blockades formed by law and government. The Anti-globalization in Healthcare would not have been a serious issue if the nations would have trailed the procedures prescribed by U.N.

Healthy Travel - Medical Tourism in Middle East : TTG Mena by Dr Prem

TRUE DEFINITION

Driven by the increased integration of global economies, tourism opportunities, ease of travel, cultural understanding, availability of quality affordable healthcare and implementation of international standards of services; the healthcare and tourism industries have expanded their horizons to benefit from a growing niche segment which is labelled medical tourism.

   The term itself is widely interchangeable with global healthcare, medical travel, healthcare travel and health tourism.

  However, each of these terms can be used to define specific segments of the global healthcare industry.

  Medical tourism itself fills a valuable niche that is desperately needed in countries with bureaucratically flawed or unaffordable healthcare.

  This industry looks set to expand developed official or unofficial medical tourism structures to promote their country, state or city as the true destination of choice for such a purpose.

   To support this, there is a growing trend of medical tourism facilitator businesses, or groups which provide comprehensive support services including travel, tourism, concierge, travel insurance, medical assistance and relevant medical and non-medical support services to the patient.

   CHALLENGING TIMES

Factors which are proving to be the industry’s major challenges have been identified in a recent research study which was conducted by myself, where I found out that 94 per cent of industry experts agreed that medical tourism is yet to truly reach its full potential.

  The research also observed that the confusion, or a lack of information and fear about complications following surgery, is the main reason for patient reluctance to cross international borders for health services.

  The top four challenges to the medical tourism industry were identified as being; ‘accessing reliable information’ at 59 per cent; ‘too many newcomers jumping on the medical tourism bandwagon who do not have sufficient experience or understanding of the industry’ at 54 per cent; ‘lack of pre- and post-operative care arrangements’ at 52 per cent; and ‘complicated intra-country laws and legal procedures’ at 49 per cent.

   REGIONAL SHARE

Catering to the industry with ease, the Middle East has a unique dual position in the medical and wellness tourism industries.

  On one hand, the region’s well-developed healthcare providers are preparing to capture the

international market while on the other hand, international healthcare organisations are tapping into the GCC’s affluent society in search of highly sophisticated and advanced healthcare services unavailable within the region itself.

   The growth of medical tourism, especially in Jordan, Lebanon, the UAE and Saudi Arabia has provided an opportunity for the Middle East, which so far has made few inroads in the sector.

  For many years already, a top priority for medical providers around the world has been to attract medical tourists from the Middle East, however, now the trend is gradually reversing as the Middle East is seeking to attract medical tourists where the cost of healthcare and delays in getting treatment have risen sharply.

  The outbound medical tourism industry is so far limited to the GCC countries while Jordan leads with regards to inbound tourism activities, and Lebanon has developed a niche segment within the cosmetic surgery field.

  The greatest challenge for the Middle East is to improve the perception of the destinations which is currently surrounding it, as traditionally not all Middle Eastern countries are known for their world-class quality healthcare facilities which can cater with ease to international patients.

  Moreover, recent political and social changes within the region have brought with them new challenges for the Middle Eastern countries to face within the medical tourism industry.

  Many countries are continuing to target the GCC market as, for instance, a recently held event entitled, International Medical Tourism Destination, organised by the FICCC and supported by the Indian government is setting up a platform in Kuwait to provide quality healthcare services at affordable prices for the regional population.

  Similarly, many other industry relevant road shows are being organised by regional governments, in an attempt to further promote medical tourism to tap into the affluent Middle Eastern patients.

  On the other hand, GCC countries have shown a tremendous interest in promoting medical tourism but I believe that these countries will have to go through a very tough process to develop medical tourism as the key challenge for them, in my opinion, remains the lack of trust in their own healthcare system.

   Another recent survey revealed that around 70 per cent of the UAE population would prefer to travel to a different country if they encounter a serious illness, and the GCC market is willing to travel, in fact they travel abroad just for common health checkups.

  The medical tourism market also has affordability for many levels, and most importantly regional governments can sponsor patients with their medical costs in most cases.

  In any case, should the GCC wish to continuously develop the medical tourism industry there is most definitely a great need for co-ordinated efforts from the GCC governments and the private sector to reverse the trend, but until then international healthcare providers will continue to penetrate the market.

 At an escalating pace over the next decade as more and more people begin to trust the quality, and see the advantages of having their surgery performed in developing countries that provide quality healthcare.

  At the same time the patient also gets an opportunity to directly or indirectly engage with the tourism activities of the destination.

  TRAVEL BENEFITS

Getting to any given destination for medical tourism purposes obviously involves travelling, which is an essential component, while tourism is an optional component however, it has been observed that either the patients themselves or their companions also certainly enjoy  the tourism attractions of any respective medical tourism destination.

  Hence, more than 50 countries have developed official or unofficial medical tourism structures to promote their country, state or city as the true destination of choice for such a purpose.

  To support this, there is a growing trend of medical tourism facilitator businesses, or groups which provide comprehensive support services including travel, tourism, concierge, travel insurance, medical assistance and relevant medical and non-medical support services to the patient.

  CHALLENGING TIMES Factors which are proving to be the industry’s major challenges have been identified in a recent research study which was conducted by myself, where I found out that 94 per cent of industry experts agreed that medical tourism is yet to truly reach its full potential.

  The research also observed that the confusion, or a lack of information and fear about complications following surgery, is the main reason for patient reluctance to cross international borders for health services.

  The top four challenges to the medical tourism industry were identified as being; ‘accessing reliable information’ at 59 per cent; ‘too many newcomers jumping on the medical tourism bandwagon who do not have sufficient experience or understanding of the industry’ at 54 per cent; ‘lack of pre- and post-operative care arrangements’ at 52 per cent; and ‘complicated intra-country laws and legal procedures’ at 49 per cent.

  REGIONAL SHARE

Catering to the industry with ease, the Middle East has a unique dual position in the medical and wellness tourism industries.

  On one hand, the region’s well-developed healthcare providers are preparing to capture the international market while on the other hand, international healthcare organisations are tapping into the GCC’s affluent society in search of highly sophisticated and advanced healthcare services unavailable within the region itself.

  The growth of medical tourism, especially in Jordan, Lebanon, the UAE and Saudi Arabia has provided an opportunity for the Middle East, which so far has made few inroads in the sector.

  For many years already, a top priority for medical providers around the world has been to attract medical tourists from the Middle East, however, now the trend is gradually reversing as the Middle East is seeking to attract medical tourists where the cost of healthcare and delays in getting treatment have risen sharply.

  The outbound medical tourism industry is so far limited to the GCC countries while Jordan leads with regards to inbound tourism activities, and Lebanon has developed a niche segment within the cosmetic surgery field.

  The greatest challenge for the Middle East is to improve the perception of the destinations which is currently surrounding it, as traditionally not all Middle Eastern countries are known for their world-class quality healthcare facilities which can cater with ease to international patients.

  Moreover, recent political and social changes within the region have brought with them new challenges for the Middle Eastern countries to face within the medical tourism industry.

  Many countries are continuing to target the GCC market as, for instance, a recently held event entitled, International Medical Tourism Destination, organised by the FICCC and supported by the Indian government is setting up a platform in Kuwait to provide quality healthcare services at affordable prices for the regional population.

  Similarly, many other industry relevant road shows are being organised by regional governments, in an attempt to further promote medical tourism to tap into the affluent Middle Eastern patients.

  On the other hand, GCC countries have shown a tremendous interest in promoting medical tourism but I believe that these countries will have to go through a very tough process to develop medical tourism as the key challenge for them, in my opinion, remains the lack of trust in their own healthcare system.

  Another recent survey revealed that around 70 per cent of the UAE population would prefer to travel to a different country if they encounter a serious illness, and the GCC market is willing to travel, in fact they travel abroad just for common health checkups.

  The medical tourism market also has affordability for many levels, and most importantly regional governments can sponsor patients with their medical costs in most cases.

  In any case, should the GCC wish to continuously develop the medical tourism industry there is most definitely a great need for co-ordinated efforts from the GCC governments and the private sector to reverse the trend, but until then international healthcare providers will continue to penetrate the market.    

Medical Malpractice in the Realm of Medical Tourism | DR. PREM JAGYASI | Medical Tourism Magazine

 

Please click this link to read complete article http://www.medicaltourismmag.com/article/medical-malpractice-in-the-realm-of-medical-tourism.html

Medical malpractice causes enough confusion for doctors, lawyers and patients when it occurs locally. However, when brought into the larger sense of international travel, it can be even more difficult to understand and manage.

There are no universal laws that regulate how individual countries handle medical malpractice. Within the realm of medical tourism itself, there is no regulating body to which patients with medical malpractice concerns can report to. Without regulations and standardizations, medical tourism has the potential to be a hub of medical malpractices in which unqualified healthcare professionals treat naïve patients. This is why the concept of medical malpractice is so important to address and discuss for individuals involved in the medical tourism industry.

This article will try to tackle the concept of medical malpractice in the realm of medical tourism so that both healthcare professionals and consumers are aware of the consequences.

Let’s discuss what medical malpractice is in the first place:

Medical malpractice is the act of professional “wrong-doing” by a healthcare or medical professional catering to the needs of a patient. Malpractice occurs through negligence by act or omission where medical providers stray from the accepted medical practices within their profession that could potentially result in harm or fatalities to the patient. Healthcare professionals have a responsibility to treat patients to the best of their ability, so when a physician or another medical professional deviates away from standard medical procedures (even in the form of unintentional medical errors), they have to be accountable to their patient and for their mistake.

ETHICS AND LEGALITIES

Medical malpractice is often viewed through two sides of a spectrum—an ethical aspect and/or a legal aspect. Any act of wrong-doing in which the results of the malpractice have a negative impact on a person’s life, community or country could be considered unethical, regardless of whether or not it meets a patient’s expectations. Malpractice and the violation of ethics are more severe when the action is performed intentionally and with the understanding that such practices could be harmful.

Intentional acts of medical malpractice all fall under the sphere of unethical practices. The justice system of certain countries has placed great emphasis on legal consequences when an act of medical negligence has occurred.

Cases such as these have initiated the large legal response we see today into the realm of medical malpractice. Patients have decided they want some sort of retribution when a medical error occurs, and this is often tied to the litigious aspect of it. This has resulted in patients having the ability to file a medical malpractice claim and sue their healthcare professional when they feel they have been wronged. Nowadays, physicians practicing in countries with stringent medical malpractice regulations can get sued over any case of medical malpractice (intentional or not) so much so to the detriment of their career.

Some countries, like the United States, take the issue of medical malpractice very seriously, causing doctors to purchase malpractice insurance in order to protect themselves (one of the reasons for the high cost of healthcare in the U.S.). However, some medical tourism destinations might not have such strict laws, creating a disparity in legal regulations for, let’s say, an American traveling to prime spots like India or Thailand.

EXAMPLES OF MEDICAL MALPRACTICE WITHIN MEDICAL TOURISM

The risk of medical malpractice occurring within medical tourism is very high, especially because patients are traveling outside their comfort zones and away from the legal and ethical systems they are used to. Physicians can convince foreign patients to let them perform unethical procedures and can also refuse to grant them legal recourse in the case of a medical error.

The numbers, cases and examples of medical malpractice are endless and are happening on a daily basis. Here are a few common examples of medical malpractice that have been highlighted or reported.

Physicians practicing outside their country

Since there are no universal laws or standards in place dictating medical malpractice, physicians can travel outside their country and consult or even treat foreign patients in a region where they are not licensed to practice. This could be detrimental for patient safety and for the reputation of medical tourism.

Lack of transparency of foreign physicians

Since the majority of communication between a patient and physician during medical tourism occurs when both parties are in different countries, there is a great potential for physicians to be unethical. Prior to a patient flying in for treatment, the patient could receive a lot of false information about the procedure in order to lure them into travelling. This is due to a lack of transparency and additionally a lack of regulation. These two issues combined are a great hurdle for medical tourism to overcome in the near future.

Lack of legal recourse for the patient

If a medical error has been made or an act of negligence has occurred in the form of medical malpractice, a patient has the right to duly receive retribution. This retribution usually comes in the form of a monetary reward (where the patient sues the healthcare provider) or by fixing the medical error made. However, when it comes to medical tourism, the variations in the legal systems of different countries could prevent a patient from receiving any legal recourse.

Unethical Practices

There are several examples of how foreign physicians can utilize unethical practices with foreign patients. These include: charging higher prices to international patients as compared to locals, covering hospital documents in the local language and refusing to provide translator services, misuse of medical technology (via using technological means to predict or even influence the characteristics of the foetus or through unethical organ transplant procedures) and not providing the patient with enough pre- and post-operative information. All these unethical cases also fall into the category of medical malpractice; however, depending on the legal system of the medical tourism destination they might or might not have a legal affiliation.

CONCLUSION

The concept of medical tourism might have been in practice for centuries, but due to the recent widespread globalization, the medical tourism industry has been burgeoning and is set to continue growing well into the future. But there are several hurdles that we still have to face in order to keep the reputation of medical tourism strong.

One of the greatest issues is the lack of legal regulation for cases of medical malpractice. The fact that no standards are in place or no regulation body has been created in order to address the very relevant issue of medical malpractice is weakening the industry and all it has to offer. Patients should have a right to retribution if negligence has been done upon them and doctors need to take responsibility for their actions. Additionally, as individuals invest in the medical tourism industry, we need to work together to ensure that patients have the safest medical journey possible and that they have an outlet to voice their cases when medical negligence occurs.

Finally, we need to create a sound support system for practitioners to protect themselves in the case of unfortunate results or complications that have occurred because of unintentional practice.

About the Author

Dr. Prem Jagyasi is a Chartered Marketing, Management & Health Tourism Consultant in Dubai, United Arab Emirates.

Dr Prem Jagyasi is world renowned Health Tourism / Medical Tourism Consultant. He provides exceptional, extensive and high-end consultancy services to Healthcare Organizations, Medical Travel Facilitators, Governments and Semi- Government Authorities. He is serving Medical Tourism Association (A Non-Profit Organization) as a Chief Strategic Officer, and is responsible to develop, execute and monitor marketing, brand and communication strategies. He is also closely involved with MTA team to create, protect & foster industry standards, quality of care projects & strategic developments.

He may be reached by email at prem@jagyasi.com web: www.drprem.com

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Destination Mechanics – An Article by Dr Prem in Medical + Wellness Tourism Magazine (Medical Tourism Destination)

Read original article at www.MWTourism.com

In today’s highly advanced age, al l heal the conscious people are not only aware of issues affecting their health, but they are also aware that they have alternative options in case they cannot afford or get access to treatments and procedures at their home countries. Such consciousness among the intelligent patients has led many nations to develop their medical capacities into health tourism hubs.

ESSENTIAL COMPONENTS OF A DESTINATION

In order to analyse the key indications that turn a country or a region into a health tourism destination, I have conducted a research that involved 150 industry expert ts who were asked to rank pre-researched essentials of a medical tourism destination: popularity, accessibility, quality standards of healthcare, recognition, technology and specialization, government support, cultural and social sensitiveness and affiliation with networks and associations.  Respondents ranked quality of healthcare services at a destination as the most essential component, followed by technology, facilities and specialisation. Quality as a priority feature came first as no surprise.

It is quite obvious that, if healthcare providers at destinations are reputable and facilities are accredited by recognized national and international standardization organisations, patients feel safe and secure owing to the fact that they are guaranteed to receive standardized and approved healthcare procedures. Second-ranked component was the advancement in healthcare technology. With regards to medical capabilities, different countries have developed their own reputations. The main reason why patients look forward to a medical tour is the flexibility, which they get in terms of medical knowledge, scientific and technological advancements, as well as expert super-vision and treatment. All these factors make any medical tourism destination trustworthy.

Personal and collective perception of a destination in a decision-making process should not be underestimated. Popularity of a medical tourism destination and recognition of the destination were ranked third. It is not hard to understand the fact that in order to become popular, a destination must offer various benefits to tourists such as amenities, tourism attractions, conformability  and safety, international flight connections, openness, and a sound support system, amongst many other. opularity alone might note a great help as destinations need to move towards international recognition in medical tourism.

Another essential component was government support of healthcare at a destination. The government regulatory acts and state policies play a major role in attracting health tourists’ attention. The regulatory policies passed on by the government control the tourist traffic in the global healthcare industry. These government policies assist in the orderly integration of tourism and healthcare services, which leads to more tourists coming to a destination seeking healthcare benefits and tourist attractions. Hence, the co-operation between the government regulatory acts and state policies play a major role in attracting health tourists’ attention.

Hen

ce, the co-operation between public and private sectors aim at providing improvised services to patients, via good supply of medicine and equipment, advanced medical diagnostics, outsourcing of hospital administration and health insurance. Governmental financial institutions also play a vital role in providing funds for the development of various medical projects. Meanwhile, governments themselves benefit considerably with the rise of medical tourism, as it provides employment and increases business opportunities.

Connections with medical tourism agencies, associations and business networks cannot go unnoticed.  in order to make a destination successful, local governments, business associations and providers need to get in touch with internationally recognised associations, agencies and business networks, as such co-operations boost public credibility.

The accessibility of a health tourism destination was ranked highly by survey respondents. A health tourism destination should be accessible from almost any corner of the world through commutation channels such as road, rail, or airways.

Moreover, some basic

information or good-to-know facts should be available to potential medical tourists through

various channels of communication such as government agencies and web-based services.

INDIVIDUAL PERCEPTIONS IN CHOOSING A DESTINATION

Considering the results of the survey, I believe that patients, when deciding on the choice of a health tourism destination, select from the following:

A) Quality of healthcare. Patients look into healthcare services of the destination as a whole, i.e. the combination of healthcare accreditation system along with recognition and existing inbound stream factors.

B) Evaluation and perception.

Patients pay attention to levels of comfort and tourism opportunities available at a destination.

C) Price and value proposition. As value calculation is based on benefits received minus price paid for such benefits, this evaluation could be individualistic since people would have different perceptions of benefit and price equilibrium. However, a destination must always offer value for money, even if patients travel to costlier destinations for high-end treatment. 

D) Secure social and cultural structure. Patients tend to choose socially secure and politically stable destinations in order to avoid complication. Patients are also willing to travel to destinations with similar cultural and social understandings.

CONTRIBUTION TO THE GROWTH OF THE INDUSTRY

Regardless of the importance of essential components and their ranking, one fact is sure that every good medical tourism destination ultimately helps industry to grow. First of all, branded destinations, such as ‘Singapore healthcare’, promote medical tourism as organized structures. Further, destinations with reasonable prices are the ones that reflect the true values of the medical tourism industry. To exemplify, does India not give a big saving image in patients' minds? Having in mind up to 50-75 per cent cost savings, patients are lured to evaluate medical tourism options of this destination.

Emerging health tourism destinations create a sense of industry competition. For instance, Taiwan’s intention to support medical tourism would enhance competition in the region. And this will make other destinations create better value products, thus creating beneficial conditions for the industry’s growth. Moreover, regional destinations create joint activities for effectiveness and are moving towards relationship management, defined target markets and niche segmentation.

So no matter what component a destination selects to highlight to become a recognized medical tourism destination, it is certain that a good health tourism destination is a good boost for the medical tourism industry.

ABOUT THE AUTHOR

DR PREM JAGYASI

 A successful entrepreneur and experienced strategic professional, Dr Prem Jagyasi is a renowned Chartered Management, Healthcare Marketing and Medical Tourism Consultant. He has contributed extensively to medical tourism and global healthcare. He is known for his distinctive thinking and approach in medical tourism, and is regarded as a knowledgeable personality in the industry. He can be contacted at: www.DrPrem.com

Let's Clear the Terms First - An Article on Medical Tourism Terms (Also known as Global Healthcare, Health Tourism, Medical Travel, Wellness Tourism)

The ever-evolving nature of industry-specific terminology, especially in the healthcare tourism segment, can often be left wide open to interpretation and confusion. Armed with invaluable insight into this market and yielding a synergetic approach, renowned consultant and expert, Dr Prem Jagyasi offers us a dose of clarification.

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