While Bermuda could be a potential destination
for them to receive the care they need, other jurisdictions currently have a
much more compelling product to offer.
Medical tourism is defined as the act of
travelling to another country to seek specialised or economical medical care,
well-being and recuperation of acceptable quality with the help of a support
system. The major reasons why these tourists leave their home country for
treatment are: cost savings; comparable or better quality care; and /or reduced
waiting periods that allow quicker access to care. With healthcare costs
skyrocketing in the US, Americans are flooding into jurisdictions where the
same treatments and procedures are literally pennies on the dollar.
In 2007 an estimated 750,000 Americans
travelled abroad for medical care according to study conducted by Deloitte
titled “Medical Tourism: Consumers in Search of Value”
(http://www.deloitte.com/assets/Dcom-unitedStates/Local%20Assets/Documents/us_chs_MedicalTourismStudy
(3).pdf).
This amount is expected to expand to 15.75
million in 2017 and represent a potential $30.3 to $79.5 billion spent overseas
on medical care. For this cohort of tourists the price is right. Over 35
countries currently offer some form of medical tourism. Countries such as
India, Thailand and Singapore offer medical procedures at as little as 10
percent of the cost of comparable care in the United Sates. In fact, “two in
five survey respondents said they would be interested in pursuing treatment
abroad if quality was comparable and the savings were 50 percent or more”.
The most common types of outbound medical
procedures undertaken by American medical tourists is elective surgeries such
as knee replacements or rhinoplasty (nose-job). According to the Deloitte
survey, rhinoplasty outpatient surgery costs around $3,866 in the US but only
$1,682 on average in the three lowest foreign jurisdictions including travel
costs. The savings on knee surgery are even more pronounced.
This procedure costs $4,686 for the outpatient
in the US while only $1,398 in the average three lowest foreign countries
including travel costs. It is unlikely Bermuda will be able to compete in this
regard as travel costs (including hotel stay and flight) alone could exceed the
total costs in a low cost jurisdiction.
Currently Bermuda does not really offer any
cost savings advantage. In addition, 71 percent of hospital costs are for
labour, according to a recent World Health Organisation report, and this might
be difficult for Bermuda to overcome.
Only a draconian series of wage cuts would
bring Bermuda more in line with low cost jurisdictions. Bermuda's small
population already limits the number of procedures that can be economically
performed on the island and it would be difficult to increase volume of
procedures significantly.
Cost is not everything, however. Quality and
safety are primary considerations. The Joint Commission International (“JCI”)
is an organisation that effectively evaluates quality and safety metrics and
offers accreditation (http://www.jointcommissioninternational.org/JCI-Accredited-Organizations/)
to hospital systems.
There are over 120 hospitals worldwide,
according to the Deloitte study that are accredited through the JCI. Except for
its Clinical Lab /Department of Pathology, Bermuda's King Edward VII Memorial
Hospital is not one these. Before a plan and marketing strategy is crafted I
would suggest all facilities or institutions involved first become accredited
to ensure world class quality and safety. Pursuing medical tourism before
undertaking this process opens Bermuda up to potential reputational damage.
It's also very likely that competitors would use the ‘perceived risk' of
seeking care at a non-accredited facility to their advantage during their
marketing campaigns.
The prospect of using regulatory arbitrage
also does not provide Bermuda with any advantages in the medical tourism game
and the recent High Intensity Focused Ultrasound (HIFU) offering for prostate
cancer is a good example. If the treatment is found to be highly effective and
safe, it will eventually be offered in the US as well as other jurisdictions
and this regulatory advantage could vanish overnight.
At this stage, it is unclear how Bermuda can
offer any comparable advantage in the field of medical tourism. As a result it
would not appear to offer a viable opportunity for the investment of capital or
time in pursuing it further.
More focus should be directed towards
alternate product offerings such as casinos and short-term retreat packages
that help alleviate the seasonality drag that the island suffers from. Many
other opportunities potentially exist that would offer a much more compelling
return for the island than one that seems to be “dead on arrival”.
Bermuda has one of the worlds' greatest
potential tourist assets. In my opinion, it is one of the most beautiful
tropical islands in the world and has a great deal to offer. Let's focus on its
real economic potential opportunities.
Nathan Kowalski
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Consulting, Investment and Management, focusing three main economic sectors: International PR; Healthcare & Wellness;and Tourism & Hospitality. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programs. Sign up with twitter to get news updates with @SaigonBusinessC. Thanks.
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