in the coming decade. Dissatisfaction with the rocketing price of care will only get worse as demanding and health-conscious “baby-boomers” hit retirement and start to suffer the costly ailments of old age. In countries like Britain and Canada, with supposedly universal coverage, state spending is not keeping up with growing demand, so patients face long and agonising waits for operations. And in the prosperous bits of Asia and the Middle East growing numbers of people are rich enough to demand high-quality medical care that they cannot get locally.
Now that's what I call room serviceAPAll this presents a fantastic business opportunity for those Asian countries, principally Thailand, Singapore and India, which have excellent private hospitals that are used to treating foreigners and where costs are a fraction of those in rich countries. “Medical tourism” is booming as patients look abroad for cheap, fast treatment, often combined with a holiday afterwards. Josef Woodman, the author of “Patients Beyond Borders”, a new guide for those seeking surgery abroad, reckons that 150,000 Americans did so last year, and predicts the numbers will double this year.
Booming demand is encouraging rapid expansion at big stockmarket-listed hospital operators such as Thailand's Bumrungrad and Bangkok Dusit, Singapore's Parkway and Pacific Healthcare and India's Apollo Hospitals. This week Pacific Healthcare said it would build seven medical centres across Asia. Bumrungrad, which treated 430,000 non-Thais last year, has just expanded its Bangkok hospital and is setting up in the Philippines and Dubai.
Singapore is more expensive than Thailand, but still far cheaper than America. Goh Jin Hian, the head of Parkway's Gleneagles Hospital, says Singapore should try to compete for the most complex treatments, leaving cosmetic surgery and other price-sensitive operations to lower-cost rivals such as Thailand. Nevertheless, like the Thai hospital operators, he is sure the medical-travel boom will provide plenty of foreign patients for them all.
Mr Woodman reckons that today's boom is just the start. So far, most medical tourists pay their own way. But the Asian hospital operators are now courting American health insurers and employers desperate to rein in soaring costs. Bumrungrad's marketing chief, Ruben Toral, who was in America this week for talks with insurers and big employers, says they were very keen. BlueCross BlueShield of South Carolina already offers Bumrungrad's cut-price treatments to members whose policies do not cover the surgery they need.
To reassure foreign patients, many hospitals are seeking accreditation from the Joint Commission International (JCI), the international arm of the body that accredits American hospitals. Thailand's Bumrungrad and nine Singaporean hospitals already have JCI certificates. Raymond Chong, the boss of Bangkok Dusit's Samitivej Hospital, reckons it will be only a year or two before big American insurers and employers routinely offer patients lower premiums if they are prepared to travel to a foreign JCI-accredited hospital for surgery.
For patients, employers and insurers the benefits are clear. But the hospital operators are bracing themselves for a backlash from the rich countries' medical vested interests whose jobs are, in effect, being outsourced. Expect much shroud-waving from doctors' associations and health-care unions as they highlight the few cases of foreign surgery that go wrong—as though such a thing never happens back home.
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