Medical Tourism in Developing Countries
Medical Tourism in Developing Countries Medical Tourism in Developing Countries
Promoting Medical Tourism ● 107Table 5.2 contains data on perceptions of brain drain collected by theWorld Economic Forum. Top business executives were asked to react to thefollowing statement: your country’s talented people: 1 normally leave topursue opportunities in other countries, 7 almost always remain in thecountry. The Philippines, notorious for its brain drain, in fact ranks lowestamong the countries pursuing medical tourism. Chile’s talented people arethought to remain in the country so much so that it ranks eighth in theworld according to that indicator.Brain drain also occurs when doctors and nurses from developing countriestrain abroad and then opt to remain there. Gupta, Goldar, and Mitranoted that only 48 percent of the Indian doctors who trained abroadreturned home. 42 However, they cite a study conducted in 1993 and it islikely that this number has changed given the rise in medical tourism. Andthis leads us to brain gain.Medical tourism has opened up the possibility of brain gain of highlyskilled workers. Such brain gain carries high monetary value as a countryreceives skilled workers (that it didn’t have to train), as well as their productivity,drive, and tax revenue. There are different ways of getting braingain. Some are short term, such as derived from the UNDP program calledTransfer of Knowledge Through Expatriate Nations (TOKEN) that arrangesthat expats return to work on specific programs. Most are more long term,attained both by retention efforts and induced reverse migration.Table 5.2 Brain drain, 2005CountryTalented people stay or leaveArgentina 3.0 (72)Chile 5.3 (8)Costa Rica 4.2 (29)Cuban.a.India 3.6 (47)Jordan 2.6 (87)Malaysia 5.0 (15)South Africa 3.1 (68)Philippines 2.3 (101)Thailand 4.9 (17)USA 6.4 (1)Zimbabwe 1.7 (116)Note : Values range between 1 and 7 (7 is highest), and country rank is inparentheses.Source : World Economic Forum, Global Competitiveness Report 2005–06,(New York: Palgrave Macmillan, 2006), table 4.08.
108 ● Medical Tourism in Developing CountriesThe countries under study are increasingly successful in retaining skilledworkers. Authorities have recognized that they must emphasize retention,since educating people who then leave, taking their skills along, eliminatesthe macroeconomic benefit of expenditure on training. Government policyis thus aimed at providing a vibrant medical tourism industry at home thatcan offset the need to work abroad and thereby helps keep human capitalat home. The importance of a domestic environment that can inducedoctors and nurses to stay at home has been recognized in the literature.David Warner notes that a globalized medical care system (such as the onewhere medical tourism exists) will “help many countries slow or reverse thebrain drain of trained medical personnel who currently emigrate and findit difficult to support themselves if they stay at home.” 43 Similarly, ThomasFriedman claims that outsourcing allows Indians to “compete at the highestlevels, and be decently paid, by staying at home . . . [they] can innovatewithout having to emigrate.” 44In addition to retaining skilled workers, it is also important to inducereverse movements of doctors and medical staff that have been trained inforeign countries. Again, authorities in developing countries have recognizedthis need and have introduced supportive policies, including financialinducements for housing, as well as business credits. Moreover, as economicdevelopment occurs, the lifestyle gap between LDCs and MDCs is nolonger as large as it once was, further inducing reverse migration. Suchincentives have been especially successful in India, where Indians in thediaspora are coming home in droves. According to Nasscom, a trade groupof Indian outsourcing companies, some 30,000 technology professionalshave moved back to India in 18 months in 2004–5. 45 They are buildingcommunities that resemble the suburbs they left behind in the UnitedStates and are actively closing the lifestyle gap. While there is obviously awide range of sentiments that draw expatriates back to their homeland,many are clearly not monetary or quantifiable, but rather have to do withthe spiritual, emotional, and nostalgic dimension associated with homeland,culture, roots, extended family, and belonging. All this is summed up bythe sentiment succinctly expressed by the founder of Escorts Hospitals,Naresh Trehan, who moved from the United States to India to invest inmedical tourism: “I make one tenth of what I was making in the U.S. butI’m ten times happier.” 46 Such anecdotal evidence of reverse migration isbolstered by findings of the National Bureau of Economic Research:“A special counter-flow operating on the U.S. . . . is the tendency of foreignbornAmerican [science] stars to return to their homeland when it developssufficient strength in their area of science and technology.” 47
- Page 69 and 70: 56 ● Medical Tourism in Developin
- Page 71 and 72: 58 ● Medical Tourism in Developin
- Page 73 and 74: 60 ● Medical Tourism in Developin
- Page 75 and 76: 62 ● Medical Tourism in Developin
- Page 77 and 78: 64 ● Medical Tourism in Developin
- Page 79 and 80: 66 ● Medical Tourism in Developin
- Page 81 and 82: 68 ● Medical Tourism in Developin
- Page 83 and 84: 70 ● Medical Tourism in Developin
- Page 85 and 86: 72 ● Medical Tourism in Developin
- Page 87 and 88: 74 ● Medical Tourism in Developin
- Page 89 and 90: 76 ● Medical Tourism in Developin
- Page 91 and 92: 78 ● Medical Tourism in Developin
- Page 93 and 94: 80 ● Medical Tourism in Developin
- Page 95 and 96: 82 ● Medical Tourism in Developin
- Page 97 and 98: 84 ● Medical Tourism in Developin
- Page 99 and 100: 86 ● Medical Tourism in Developin
- Page 101 and 102: 88 ● Medical Tourism in Developin
- Page 103 and 104: 90 ● Medical Tourism in Developin
- Page 105 and 106: 92 ● Medical Tourism in Developin
- Page 107 and 108: This page intentionally left blank
- Page 109 and 110: 96 ● Medical Tourism in Developin
- Page 111 and 112: 98 ● Medical Tourism in Developin
- Page 113 and 114: 100 ● Medical Tourism in Developi
- Page 115 and 116: 102 ● Medical Tourism in Developi
- Page 117 and 118: 104 ● Medical Tourism in Developi
- Page 119: 106 ● Medical Tourism in Developi
- Page 123 and 124: 110 ● Medical Tourism in Developi
- Page 125 and 126: 112 ● Medical Tourism in Developi
- Page 127 and 128: Table 5.4 Indicators of physical in
- Page 129 and 130: 116 ● Medical Tourism in Developi
- Page 131 and 132: 118 ● Medical Tourism in Developi
- Page 133 and 134: 120 ● Medical Tourism in Developi
- Page 135 and 136: 122 ● Medical Tourism in Developi
- Page 137 and 138: 124 ● Medical Tourism in Developi
- Page 139 and 140: 126 ● Medical Tourism in Developi
- Page 141 and 142: 128 ● Medical Tourism in Developi
- Page 143 and 144: 130 ● Medical Tourism in Developi
- Page 145 and 146: 132 ● Medical Tourism in Developi
- Page 147 and 148: 134 ● Medical Tourism in Developi
- Page 149 and 150: 136 ● Medical Tourism in Developi
- Page 151 and 152: This page intentionally left blank
- Page 153 and 154: 140 ● Medical Tourism in Developi
- Page 155 and 156: 142 ● Medical Tourism in Developi
- Page 157 and 158: 144 ● Medical Tourism in Developi
- Page 159 and 160: 146 ● Medical Tourism in Developi
- Page 161 and 162: 148 ● Medical Tourism in Developi
- Page 163 and 164: 150 ● Medical Tourism in Developi
- Page 165 and 166: 152 ● Medical Tourism in Developi
- Page 167 and 168: 154 ● Medical Tourism in Developi
- Page 169 and 170: 156 ● Medical Tourism in Developi
108 ● <strong>Medical</strong> <strong>Tourism</strong> <strong>in</strong> Develop<strong>in</strong>g <strong>Countries</strong>The countries under study are <strong>in</strong>creas<strong>in</strong>gly successful <strong>in</strong> reta<strong>in</strong><strong>in</strong>g skilledworkers. Authorities have recognized that they must emphasize retention,s<strong>in</strong>ce educat<strong>in</strong>g people who then leave, tak<strong>in</strong>g their skills along, elim<strong>in</strong>atesthe macroeconomic benefit of expenditure on tra<strong>in</strong><strong>in</strong>g. Government policyis thus aimed at provid<strong>in</strong>g a vibrant medical tourism <strong>in</strong>dustry at home thatcan offset the need to work abroad and thereby helps keep human capitalat home. The importance of a domestic environment that can <strong>in</strong>ducedoctors and nurses to stay at home has been recognized <strong>in</strong> the literature.David Warner notes that a globalized medical care system (such as the onewhere medical tourism exists) will “help many countries slow or reverse thebra<strong>in</strong> dra<strong>in</strong> of tra<strong>in</strong>ed medical personnel who currently emigrate and f<strong>in</strong>dit difficult to support themselves if they stay at home.” 43 Similarly, ThomasFriedman claims that outsourc<strong>in</strong>g allows Indians to “compete at the highestlevels, and be decently paid, by stay<strong>in</strong>g at home . . . [they] can <strong>in</strong>novatewithout hav<strong>in</strong>g to emigrate.” 44In addition to reta<strong>in</strong><strong>in</strong>g skilled workers, it is also important to <strong>in</strong>ducereverse movements of doctors and medical staff that have been tra<strong>in</strong>ed <strong>in</strong>foreign countries. Aga<strong>in</strong>, authorities <strong>in</strong> develop<strong>in</strong>g countries have recognizedthis need and have <strong>in</strong>troduced supportive policies, <strong>in</strong>clud<strong>in</strong>g f<strong>in</strong>ancial<strong>in</strong>ducements for hous<strong>in</strong>g, as well as bus<strong>in</strong>ess credits. Moreover, as economicdevelopment occurs, the lifestyle gap between LDCs and MDCs is nolonger as large as it once was, further <strong>in</strong>duc<strong>in</strong>g reverse migration. Such<strong>in</strong>centives have been especially successful <strong>in</strong> India, where Indians <strong>in</strong> thediaspora are com<strong>in</strong>g home <strong>in</strong> droves. Accord<strong>in</strong>g to Nasscom, a trade groupof Indian outsourc<strong>in</strong>g companies, some 30,000 technology professionalshave moved back to India <strong>in</strong> 18 months <strong>in</strong> 2004–5. 45 They are build<strong>in</strong>gcommunities that resemble the suburbs they left beh<strong>in</strong>d <strong>in</strong> the UnitedStates and are actively clos<strong>in</strong>g the lifestyle gap. While there is obviously awide range of sentiments that draw expatriates back to their homeland,many are clearly not monetary or quantifiable, but rather have to do withthe spiritual, emotional, and nostalgic dimension associated with homeland,culture, roots, extended family, and belong<strong>in</strong>g. All this is summed up bythe sentiment succ<strong>in</strong>ctly expressed by the founder of Escorts Hospitals,Naresh Trehan, who moved from the United States to India to <strong>in</strong>vest <strong>in</strong>medical tourism: “I make one tenth of what I was mak<strong>in</strong>g <strong>in</strong> the U.S. butI’m ten times happier.” 46 Such anecdotal evidence of reverse migration isbolstered by f<strong>in</strong>d<strong>in</strong>gs of the National Bureau of Economic Research:“A special counter-flow operat<strong>in</strong>g on the U.S. . . . is the tendency of foreignbornAmerican [science] stars to return to their homeland when it developssufficient strength <strong>in</strong> their area of science and technology.” 47