The Potential For Medical Tourism In India Bigger Than Estimated One Billion Dollars

The potential for medical tourism may be seriously underestimated. While estimates such as CII-McKinsey are for little over billion dollars by 2012, the opportunity could be far larger. Even a small fraction - 2% of spending on health care in developed countries could mean a $50 b industry for India. Of course, India would have to get its act straight in 10 years. This includes establishing 400-500 medical colleges, doubling the number of doctors and ensuring accreditation of hospitals.

Anne Marie Moncure, managing director, Apollo Hospitals, Delhi is an American who has worked with the US health industry for more than 20 years and is upbeat on the potential for medical tourism, pointing that around 50 million Americans are uninsured and even the insured have to pay substantial amounts for treatment. UK's NHS makes patients wait for more than one year for surgeries. She points that while heart surgery would cost upto $40,000 in US, it can be done for less than $4,000 in India.

We need to get our act together and deliver quality services consistently, get accreditation and have uniform prices says Dr Naresh Trehan, cardiologist, Escorts Health Institute. Dr Trehan is establishing a medical city by 2007 in Gurgaon with 2,000 beds. At 75 patient per year per bed, that is almost 150,000 patients. Even if one presumes revenue of $10,000 per patient, that is almost $1.5 billion from one medical city. With 15-20 such cities, India could service up to 3 million patients and get revenues of $30 billion. While the CII-Mckinsey study estimates a potential of just Rs 5,000- 10,000 crore or $1-2 billion by 2012, CII official Charanjit Banerjee, admits that the potential for medical tourism could be as much as $5 billion by 2012.

(Ref : "Economic Times" dated May 21, 2005)

GE Healthcare teams with Dr Trehan for ''Medicity''

With an eye on developing a world-class diagnostic and research & development facility in India, Dr Naresh Trehan has entered into an MoU with GE Healthcare for establishing Medicity in Gurgaon. Medicity will be spread over 43 acres and will require an investment of $250 million. Once developed, GE Healthcare will provide high-end diagnostic tools, clinical research and development and utility services like power generation and distribution, lighting and water treatment. Speaking to reporters, Jeffery Immelt, chairman and CEO of GE Worldwide said, "GE is not investing in cash in Medicity. We will provide the world-class technology for high-end diagnostic tools, clinical research and development and eco-friendly solutions." Immelt, however, added that GE does not rule out equity partnership in Medicity. GE participation in Medicity is a part of the company's global strategy of positioning itself as a leader in diagnostics. Globally, GE has a healthcare business of $15 billion. On the investment requirements for Medicity, Dr Trehan said, "We have a number of equity partners and there is no problem in raising the required funds for Medicity." The 1,800 bed hi-tech medicity is expected to be completed in 2007. Extending government's partnership to Medicity, Kapil Sibal, minister of science and technology, said, "We are with this project. Once completed we would like to see a world-class R&D facility which would come up with low-cost medical solutions for the masses too."

(http://www.indiadaily.com/breaking_news/36660.asp)