Medical Tourism in Developing Countries

Offshore Doctors ● 53Thus, the prices of medical services are simultaneously a push and a pull.According to UNCTAD, “The global trend of increasing medical costs anddecreasing public health care budgets, with the consequent reduction ofhealth care coverage, may encourage a larger number of patients to look forhealth treatment in countries where the ratio price/quality is more advantageousthan at home. [italics mine]” 53 Thus, medical tourism occurs.Determinants of Demand for Medical TourismEarlier, a distinction was made between high income medical tourists andneighboring border tourists. This section deals only with the former sincethe focus of this book is medical tourism as a growth-promoting strategyand border tourism lacks financial punch to generate significant economicgrowth.Two related questions are relevant in the discussion of luxury medicaltourism. First, what determines demand for medical tourism in general andsecond, what determines the demand for medical tourism in any one particularcountry? The response to the first question requires a discussion ofthe usual determinants of demand, including personal income, taste, opennessto the outside world, and expectations about future prices, and availabilityof health care. In response to the question about country-specificdemand, factors such as cultural affinity, distance from home, medical specialization,and reputation are relevant.Demand for Medical Tourism in GeneralIncomeBeing a normal good, travel for health care is positively related to income.The greater the personal disposable income of the medical tourist, themore is available for consumption of nonessentials, including travel forlifestyle medicine, elective procedures, and diagnostics. While credit marketsenable individuals to travel now and pay later, and airline mileageprograms make distant, expensive locations more accessible, discretionaryincome is still necessary for medical tourism.As people have more income, they tend to buy more wellness and preventivemedicine. High-income individuals tend to be healthier because theyare more educated about disease and preventive health, they know moreabout healthy lifestyles, and as they age, they pursue even healthier lifestyles.Smoking rates have gone down among adults, especially high-income adults.They avoid exposure to second hand smoke, and bars and restaurants areresponding to their taste. People stay out of the sun and they exercise.