Medical tourism is set to beat pre-Covid-19 levels in next two quarters

Meanwhile, traditional Indian medicine centers have once again started receiving patients from overseas

Medical tourism is back with a bang in India, after being nearly reduced to naught during the two years hit by the Covid-19 pandemic.

Corporate hospitals say that footfall and revenues are not only back to pre-Covid-19 levels but are expected to surpass the pre-pandemic numbers in the next two quarters.

As such the $6-billion medical tourism market in India is expected to rise to $13 billion by 2026, according to some estimates. An industry source said that if the market kept growing at the current rate, it had the potential to touch $25 billion by 2030. The sector is expected to grow at a CAGR of 21.1 per cent from 2020 to 2027.

According to Anil Vinayak, group chief operating officer, Fortis Healthcare, medical tourism has steadily returned to normal over the last six months after being hit by lockdowns and flight restrictions.

“We are almost at pre-Covid levels, and there are signs that we will go higher as well. There is a strong base of patients now as well as those with travel plans in the coming months,” he said, adding that the hospital chain estimates medical tourism to trump pre-Covid levels in the coming quarter or two. The pent-up demand is now being served, Vinayak said.

Foreign patients make up about 10 per cent of Fortis’ revenue. “We expect it to rise to 12 per cent in the next few quarters. Currently, it is on a par with the pre-Covid levels and we expect international traffic to be better than pre-pandemic days soon,” a Fortis spokesperson said.

Dilip Jose, MD and CEO of India’s second largest chain, Manipal Hospitals, said, “We have noticed that both in terms of number of patients as well as value, international medical travel has returned to pre-pandemic levels and is beginning to show a growth, too. This has the potential to grow faster than domestic revenues in the current year, given the high proportion of elective treatments among this segment and thus the likelihood of a pent-up demand.”

An industry insider said that a significant boost to inflow of patients is expected as the Centre is trying to position the country as a hub for medical and wellness tourism under the “Heal in India” initiative. “While we await a formal announcement soon, this is a laudable initiative for the healthcare sector,” said the person.

India is favoured as a destination that offers low-cost, quality treatment. For example, a cardiac procedure costs between $40,000 and $60,000 in the US, $30,000 in Singapore, and $12,000-$15,000 in Thailand, but only $3,000-6,000 in India.

However, Jose said, the healthcare sector was yet to fully realise the opportunity for a variety of reasons. “The lack of a coordinated approach to promote our capabilities in the target geographies, absence of a consolidated platform that offers information as well as options for prospective users, and logistical challenges stand in the way. ‘Heal in India’ is a good step to address many of these concerns and the government backing would bring in authenticity, especially if there is a mechanism to filter providers who could be on the platform,” he added.

Healthcare boost
 

• Medical tourism market in India is worth $6 bn
• The market may expand to $13 billion by 2026
• The sector is expected to grow at a CAGR of 21.1% from 2020 to 2027
• A cardiac procedure that costs between $40,000 and $60,000 in the US, costs only $3,000-$6,000 in India
• Medical value travel could grow to even becoming 12-15% of the organised tertiary and quaternary sector
• Heal in India initiative by the Centre in the works
   

The Union health ministry is working with the ministries of civil aviation, tourism and Ayush, besides hospitals and other stakeholders, to create a road map to increase medical value tourism. Easing medical visa rules is on the cards.

Medical value travel could grow to even form 12 to 15 per cent of the organised tertiary and quaternary sector, and in turn support allied areas like hospitality, Jose added.

Besides its major source countries in West Asia and Africa and neighbouring regions, India has the potential to attract patients from the developed world, too — especially those who want to avoid long waiting periods for procedures and also ones who are underinsured, the local industry feels.

Meanwhile, traditional Indian medicine centres have also started receiving patients from overseas again.

“From 2005 till the nationwide shutdown in March 2020, more than 90 per cent of the patients at our Ayurveda centres in Kerala came from overseas. During the pandemic, we have seen a growth of Indian patients who account for 70 per cent of our overall numbers. But now, we are seeing a slow and steady return of international patients and the trend is going to grow in the coming months,” said Sidarth Dominic, CEO of CGH Earth Wellness.

CGH Earth Wellness began a naturopathy centre in 2018; it is seeing consistent growth in the international segment. “We see an increase in demand for preventive healthcare treatments, long Covid cases, diabetes, hormonal and gynaecological disorders, musculoskeletal disorders and other lifestyle disorders,” Dominic said.

Most of the patients come from within India, CIS and European countries.