Medical Tourism in Developing Countries
Medical Tourism in Developing Countries Medical Tourism in Developing Countries
Inequalities in Health Care ● 179adopted an Act of Parliament on Telemedicine in 1997 that designated fivemajor hospitals to provide care to remote regions.However, by far the most important way in which medical tourism canenhance public health is through macroeconomic redistribution policy. Ascountries become globally competitive in medical tourism, internationalpatients help generate more taxable income and profit. The resulting taxrevenue could be partially allocated for public health, namely for theincreased access, greater coverage, and improved quality of care for the localpopulation. In that way, medical tourism can provide a social benefit, andits growth and development can produce a positive externality. This is discussedbelow.Financing Public HealthAccording to the Alma Ata Declaration, primary health care includes at leastthe following: “Education concerning prevailing health problems and themethods of preventing and controlling them; promotion of food supply andproper nutrition; an adequate supply of safe water and basic sanitation;maternal and child health care, including family planning; immunizationagainst the major infectious diseases; prevention and control of locallyendemic diseases; appropriate treatment of common disease and injuries; andprovision of essential drugs.” 33 Providing basic medical care has proven to bequite difficult. It is like any public good—everyone wants it, but no onewants to provide it. Supplying medical care to the poor who have no abilityto pay for it is not a profit-generating activity. As a result, basic health is oftenthe focus of charities, NGOs, and corporations wishing to make a difference.While many of those efforts have been successful, many are too inconsistent,unsustainable, and limited in scope to have a broad impact. Therefore, theresponsibility for providing basic public health rests with governments.Government is in the best position to finance basic health care thatreaches the maximum number of people, and then to implement thathealth care through its primary care network. Macroeconomic policy, specificallyfiscal policy that redistributes income through taxes, can play acrucial role in the government’s ability to provide access to quality preventive,curative, and rehabilitative health care at the local levels.In developing countries, where many pressing problems compete forscarce funds, what is the source of resources that might aid public health?For some countries, the answer is medical tourism.Siphoning funds from high-growth sectors or industries in order to payfor health care is hardly a novel idea. The World Bank has imposed a
180 ● Medical Tourism in Developing Countriescondition on its loans that revenue from a lucrative sector be used for socialprograms such as health (as it did, for example, when oil was discoveredin Chad and it provided loans to build a pipeline and develop the sector. 34 )Direct foreign investment in health services might also help improve basichealth care for the poor, as Richard Smith noted (it is the debt-free investmentthat can bring additional resources and expertise and so improve therange, quality, and efficiency of services 35 ). Similarly, in discussing whyIndia should promote medical tourism, Gupta, Goldar, and Mitra claimedthat one reason is “to improve health services available within the country.”36 They go on to say that accumulating foreign currency, which is oneof the objectives of medical tourism, can be achieved without adverselyaffecting the objective of improving public health services. Given that foreigninvestment will occur mostly in a health-care system that is commercialized,such investment could increase health care for the poor when thewealthy pay for their health care provided by the new foreign enterprises.In Chile, policy makers have hinted at the role of medical tourism in promotingbasic health. The Chilean Minister of Health, Pedro Garcia, saidthat profits from medical establishments that deal with foreign patientsshould be reinvested in the hospitals to expand services. 37 In response tocriticism that health care is becoming too concerned with profits and foreignearnings, Cuba’s Servimed claimed many of its profits get reinvestedin the local health care (specifically, 60 percent of profits are reinvested intheir hospitals and 40 percent go into other aspects of health care, includinglocal 38 ).It is not just policymakers who draw the link between medical tourismand public health. Scholars have also addressed the subject. For example, ascholarly work by Henderson on health-care tourism notes, in the finalparagraphs, that revenue might be used to invest in public health. She notesthat it is possible to view medical tourism as positive because “public-privatesynergies can be achieved with local patients gaining from economies ofscale, the introduction of more and better equipment, consultant staff whowork in both domains, and progress in medical knowledge.” 39This book picks up where Henderson left off. It does not, however, offera single blueprint that all promoters of medical tourism should follow. Suchan ambitious endeavor would be difficult to achieve since destination countriesstart off with different institutions and varying arrangements betweenthem. Indeed, that Cuba is unique has already been established with respectto many characteristics. But so is Chile, with its particular brand of private/public mix and India, with its corporatization of medical care. Therefore,although this discussion will not end with a blueprint, it will bring us closer
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180 ● <strong>Medical</strong> <strong>Tourism</strong> <strong>in</strong> Develop<strong>in</strong>g <strong>Countries</strong>condition on its loans that revenue from a lucrative sector be used for socialprograms such as health (as it did, for example, when oil was discovered<strong>in</strong> Chad and it provided loans to build a pipel<strong>in</strong>e and develop the sector. 34 )Direct foreign <strong>in</strong>vestment <strong>in</strong> health services might also help improve basichealth care for the poor, as Richard Smith noted (it is the debt-free <strong>in</strong>vestmentthat can br<strong>in</strong>g additional resources and expertise and so improve therange, quality, and efficiency of services 35 ). Similarly, <strong>in</strong> discuss<strong>in</strong>g whyIndia should promote medical tourism, Gupta, Goldar, and Mitra claimedthat one reason is “to improve health services available with<strong>in</strong> the country.”36 They go on to say that accumulat<strong>in</strong>g foreign currency, which is oneof the objectives of medical tourism, can be achieved without adverselyaffect<strong>in</strong>g the objective of improv<strong>in</strong>g public health services. Given that foreign<strong>in</strong>vestment will occur mostly <strong>in</strong> a health-care system that is commercialized,such <strong>in</strong>vestment could <strong>in</strong>crease health care for the poor when thewealthy pay for their health care provided by the new foreign enterprises.In Chile, policy makers have h<strong>in</strong>ted at the role of medical tourism <strong>in</strong> promot<strong>in</strong>gbasic health. The Chilean M<strong>in</strong>ister of Health, Pedro Garcia, saidthat profits from medical establishments that deal with foreign patientsshould be re<strong>in</strong>vested <strong>in</strong> the hospitals to expand services. 37 In response tocriticism that health care is becom<strong>in</strong>g too concerned with profits and foreignearn<strong>in</strong>gs, Cuba’s Servimed claimed many of its profits get re<strong>in</strong>vested<strong>in</strong> the local health care (specifically, 60 percent of profits are re<strong>in</strong>vested <strong>in</strong>their hospitals and 40 percent go <strong>in</strong>to other aspects of health care, <strong>in</strong>clud<strong>in</strong>glocal 38 ).It is not just policymakers who draw the l<strong>in</strong>k between medical tourismand public health. Scholars have also addressed the subject. For example, ascholarly work by Henderson on health-care tourism notes, <strong>in</strong> the f<strong>in</strong>alparagraphs, that revenue might be used to <strong>in</strong>vest <strong>in</strong> public health. She notesthat it is possible to view medical tourism as positive because “public-privatesynergies can be achieved with local patients ga<strong>in</strong><strong>in</strong>g from economies ofscale, the <strong>in</strong>troduction of more and better equipment, consultant staff whowork <strong>in</strong> both doma<strong>in</strong>s, and progress <strong>in</strong> medical knowledge.” 39This book picks up where Henderson left off. It does not, however, offera s<strong>in</strong>gle bluepr<strong>in</strong>t that all promoters of medical tourism should follow. Suchan ambitious endeavor would be difficult to achieve s<strong>in</strong>ce dest<strong>in</strong>ation countriesstart off with different <strong>in</strong>stitutions and vary<strong>in</strong>g arrangements betweenthem. Indeed, that Cuba is unique has already been established with respectto many characteristics. But so is Chile, with its particular brand of private/public mix and India, with its corporatization of medical care. Therefore,although this discussion will not end with a bluepr<strong>in</strong>t, it will br<strong>in</strong>g us closer