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Indian Government All Set to Boost Medical Tourism

New Delhi, 10th February, 2009

In a shot-in-the-arm for healthcare tourism, the tourism ministry is planning to extend its market development assistance (MDA) scheme to cover Joint Commission International (JCI) and National Accreditation Board (NABH) certified hospitals. A policy announcement this effect is likely very soon.

The MDA scheme offsets overseas marketing costs for travel companies earning foreign exchange. By opening up the MDA, hospital groups will be made eligible for financial assistance, including publicity through printed material, travel and stay expenses for sales-cum-study tours and participation fees for trade fairs and exhibitions, subject to an upper ceiling.

“The MDA scheme for medical tourism is under active consideration and will apply only to accredited hospitals. It should be finalised within a week,” tourism ministry director Dr Prabhakar Dubey said. There are about 60 accredited hospitals in India, of which the big groups have independently facilitated tie-ups with US-based insurance companies such as Bluecross Blueshield and Anthem Wellpoint but smaller players have relied on agents due to high costs.

According to Pradeep Thukral, Group Head-International Marketing, Apollo Hospitals , “The ministry is prompting all players to form a government-industry partnership on the lines of Nasscom to strengthen the Indian healthcare brand overseas. Efforts will be made to launch uniform pricing bands and to combine medical packages with travel products. The potential for forex earnings through this route is huge. On an average, a medical traveller spends about $7,000 as opposed to a holiday traveler who spends $3000,” Mr Thukral added.

“With the change in global dynamics, it is the right time for the government to provide impetus to this industry and to learn from countries like Singapore and Thailand , which have participated with hospitals to draw patients.

A study by global consultancy Deloitte pegs the global market for medical tourism at $60 billion. India received an estimated 4,50,000 medical tourists in 2007, double the volumes registered in 2005, offering services at one-fifth the costs of developed nations.

Analysts expect the industry, which is growing at an annual rate of 44%, to get a boost from this move as it will help develop business linkages.

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