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Industry Analysis Case Study

Case Title:

Medical Tourism: Rise of Asia as Global Healthcare Destination

Publication Year : 2010

Authors: Prashanth Vidya Sagar Thalluri under the direction of Saradhi Kumar Gonela

Industry: Services


Case Code: INA0123

Teaching Note: Available

Structured Assignment: Available

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Global healthcare industry is becoming more competitive with an increase in number of uninsured and underinsured patients, from the developed countries like US, UK and other European countries, travelling to the developing nations seeking high quality medical treatment at affordable costs. Moreover, a patient undergoing recuperation process or the attendants of the patients travelling across the continents, obviously wish to visitkey tourist places in the newregion –while thepatient is undergoing thetreatment or recuperating. In this scenario, ever enthusiastic entrepreneurs are foreseeing promising prospects in facilitating conveyance, regional cuisine, lodging, tourism and entertainment along with aftercare for the patients from abroad. All these factors are popularising the term, ‘Medical Tourism’. Developing nations in Asia like Thailand and India are offering quality healthcare by providing high quality equipment and treatment at comparatively lower prices.Apart fromthe resources necessary for highly specialised treatment procedures, Asian countries are also blessed with rich medical heritage offering alternative treatments like yoga, acupuncture and herbal treatments to medical tourists. In addition, scenic beauty and historical importance of Asian countries make them an ideal destination for patients and their associates.
This case study analyses the factors that contributed to the rise of Asian countries in general and South Asia in particular, as favoured healthcare destinations. It also helps in debating over the emergence of new business models combining all the aspects, which will appeal better to medical tourists. This case also looks into the effect of the changing dynamics of healthcare industry on the developed economies.

Pedagogical Objectives:

    The case attempts to achieve the following pedagogical objectives:

  • To discuss the changing dynamics of Healthcare Industry (HCI) and analyse the defining trends
  • To examine the evolution of medical tourism and evaluate the potential of competing countries
  • To debate on the likely impact of medical tourism on healthcare value chain and its potential of bridging the gap between rich and poor countries
  • To explore the possibility of innovating different business models to offer better quality healthcare at less cost.

Keywords : Industry Analysis, Competitive Advantage, Comparative Cost Advantage, Value Chain Analysis, Medical Tourism in India, Medical Tourism in Asia, Healthcare Industry, Healthcare Innovations in India, Low-Cost Healthcare Facilities, Healthcare Innovations, Innovative Business Models in Healthcare

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