Medical Tourism in Developing Countries

Medical Tourism in Developing Countries Medical Tourism in Developing Countries

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Would You Like a Safari With Your Lasik Surgery? ● 81staying competitive in the global markets. Governments must welcomeprivate sector growth as it fills public coffers while producing spillover effectsthat induce indirect linkage benefits. Moreover, given that we are dealingwith health matters, the public sector must be careful not to seem too greedyor to be viewed as pursuing profits over public health (as Teh and Chupointed out, LDC governments want to appear to be politically correct andcannot be seen as willing to forgo the national health service for medicaltourism 66 ). By allowing the private sector to spearhead the development ofmedical tourism, the public sector avoids allegations of neglecting publichealth while still reaping the benefits.In turn, the private sector must acknowledge the crucial role of governmentin facilitating entrepreneurial activity. When authorities remove cumbersomeregulations, they are aiding businesses by reducing time-consuming, andthus, costly obstacles that discourage private activity. In fact, any form ofliberalization policy by the authorities will stimulate private sector activity.(Just how crippling government regulations can be for the private sector isreflected in how long it takes to start a business. According to the World EconomicForum, it takes 2 days to start a business in Australia, 5 in the UnitedStates, 81 in Mexico and 105 in Mozambique. 67 ) The more liberalized theeconomy, the greater the public sector’s encouragement of private sector needs.Moreover, the private sector must recognize the government’s macroeconomicresponsibilities and thus must comply with the financial requirements of thecenter, and pay taxes. The private sector must also operate within the legalframework set by the country’s laws and also must abide by regulations set bythe center (with specific reference to medical tourism, this might entail crosssubsidizingpublic health by providing beds at subsidized rates and treatingsome patients without charge while foreign patients are made to pay). Theprivate sector must recognize the role of the government in facilitating internationaltravel to make medical tourism easier. This entails ensuring embassiesand overseas missions are efficient in their paperwork (such as issuing timelyvisas for visiting patients), and providing convenient passenger transportsystems (ministries of aviation have been involved and change of flight planshave been made). Incidentally, because medical tourism has become one ofthe fastest growing segments in marketing Destination India, the Indiangovernment is introducing a new visa called medical visa. As part of acknowledgingeach other’s roles, the private and public sector must also acknowledgethat, although their proximate motivations are different (the former seeks tomaximize profits, while the latter seeks to maximize benefits to the largestnumber of people), they can still find common ground in which progress isPareto optimal. And so, their cooperation, based on mutual dependency, can

82 ● Medical Tourism in Developing Countriesextend into the sharing of facilities, professionals, research, as well as providingcomplementary treatments.Chile has been at the forefront in the cooperation between the publicand private sectors. Its Santiago Salud is the first public-private health-carenetwork in Latin America, supported by both the Ministry of Healthas well as the Governor of Santiago. From the public sector, three hospitalshave joined the network, each with a different specialization (Hospital delTrabajador, Hospital Calvo Mackenna, and Hospital del Torax). 68 Thepublic sector is represented by two university hospitals (University of Chileand Catholic University), both complementing each other’s specializations.Santiago Salud aims to provide state-of-the-art medical technology withhighly skilled personnel and thus place Chile firmly on the medical tourismmap. According to the Chilean Minister of Health, Pedro Garcia, SantiagoSalud is expected to earn $15 million during the first five years of the programand $35 million within the first decade. 69India has also been successful with respect to cooperation. TheMinistries of Tourism and Health have pledged to cooperate with eachother first, and then together, to seek out the private sector. 70 The CII-McKinsey report suggested that a strong cooperation between the governmentand the private sector has in fact been achieved, given that thegovernment’s first initiative for growth and improvement in the health-caresector was to “spur private investment in healthcare.” 71 The Indian authoritiesare presently seeking to create and formalize public-private partnershipsand are exploring the following models: contract out services tothe private sector (as is done in parts of India, such as Karnataka), haveprivate management of public facilities (as in South Africa), stimulate privateinvestment to meet public demand (as in the UK), and convert facilitiesfrom public to private (as in Sweden) while focusing the public sectoron primary care provision in the rural regions (as in Thailand). 72 Any oneof these possibilities would give the private sector a foot in the door anda role in something it didn’t have before—provision of public health. Thiscooperation has also necessitated the creation of a go-between betweengovernment and private sector. 73 The Confederation of Indian Industries(CII) recognizes that this is huge area of potential for India and is activelyworking on setting guidelines. It is the coordinating agency betweengovernment and hospitals; it has resources to influence policy and itsefforts are supported by the government. Another relevant group is thePacific Bridge Medical, a consulting firm that has assisted companies inthe health sector throughout Asia with regulation and business developmentsince 1988.

Would You Like a Safari With Your Lasik Surgery? ● 81stay<strong>in</strong>g competitive <strong>in</strong> the global markets. Governments must welcomeprivate sector growth as it fills public coffers while produc<strong>in</strong>g spillover effectsthat <strong>in</strong>duce <strong>in</strong>direct l<strong>in</strong>kage benefits. Moreover, given that we are deal<strong>in</strong>gwith health matters, the public sector must be careful not to seem too greedyor to be viewed as pursu<strong>in</strong>g profits over public health (as Teh and Chupo<strong>in</strong>ted out, LDC governments want to appear to be politically correct andcannot be seen as will<strong>in</strong>g to forgo the national health service for medicaltourism 66 ). By allow<strong>in</strong>g the private sector to spearhead the development ofmedical tourism, the public sector avoids allegations of neglect<strong>in</strong>g publichealth while still reap<strong>in</strong>g the benefits.In turn, the private sector must acknowledge the crucial role of government<strong>in</strong> facilitat<strong>in</strong>g entrepreneurial activity. When authorities remove cumbersomeregulations, they are aid<strong>in</strong>g bus<strong>in</strong>esses by reduc<strong>in</strong>g time-consum<strong>in</strong>g, andthus, costly obstacles that discourage private activity. In fact, any form ofliberalization policy by the authorities will stimulate private sector activity.(Just how crippl<strong>in</strong>g government regulations can be for the private sector isreflected <strong>in</strong> how long it takes to start a bus<strong>in</strong>ess. Accord<strong>in</strong>g to the World EconomicForum, it takes 2 days to start a bus<strong>in</strong>ess <strong>in</strong> Australia, 5 <strong>in</strong> the UnitedStates, 81 <strong>in</strong> Mexico and 105 <strong>in</strong> Mozambique. 67 ) The more liberalized theeconomy, the greater the public sector’s encouragement of private sector needs.Moreover, the private sector must recognize the government’s macroeconomicresponsibilities and thus must comply with the f<strong>in</strong>ancial requirements of thecenter, and pay taxes. The private sector must also operate with<strong>in</strong> the legalframework set by the country’s laws and also must abide by regulations set bythe center (with specific reference to medical tourism, this might entail crosssubsidiz<strong>in</strong>gpublic health by provid<strong>in</strong>g beds at subsidized rates and treat<strong>in</strong>gsome patients without charge while foreign patients are made to pay). Theprivate sector must recognize the role of the government <strong>in</strong> facilitat<strong>in</strong>g <strong>in</strong>ternationaltravel to make medical tourism easier. This entails ensur<strong>in</strong>g embassiesand overseas missions are efficient <strong>in</strong> their paperwork (such as issu<strong>in</strong>g timelyvisas for visit<strong>in</strong>g patients), and provid<strong>in</strong>g convenient passenger transportsystems (m<strong>in</strong>istries of aviation have been <strong>in</strong>volved and change of flight planshave been made). Incidentally, because medical tourism has become one ofthe fastest grow<strong>in</strong>g segments <strong>in</strong> market<strong>in</strong>g Dest<strong>in</strong>ation India, the Indiangovernment is <strong>in</strong>troduc<strong>in</strong>g a new visa called medical visa. As part of acknowledg<strong>in</strong>geach other’s roles, the private and public sector must also acknowledgethat, although their proximate motivations are different (the former seeks tomaximize profits, while the latter seeks to maximize benefits to the largestnumber of people), they can still f<strong>in</strong>d common ground <strong>in</strong> which progress isPareto optimal. And so, their cooperation, based on mutual dependency, can

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