Medical Tourism in the Philippines - Philippine Institute for ...

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B. The Domestic IndustryMedical tourism gravitates around 21 premier hospitals included under the Philippine MedicalTourism Program (PMTP). The table below shows their location, ownership, and total number of beds.Hospitals Under the Philippine Medical Tourism Program, 2013Location Private Public TotalNumber Beds Number Beds Number BedsMetro Manila 11 4,371 5 2,107 16 6,478Batangas Province 1 220 - - 1 220Cebu 3 1,210 - - 3 1,210Davao 1 250 - 1 250Total 16 6,051 5 2,107 21 8,158Source: This studyThe domestic industry is very price-competitive relative to the origin-countries of medicaltourists and relative to its leading competitors in Asia. This is shown in the table below which comparesPhilippine prices for a sample of procedures with those obtaining in the U.S. and Thailand.Comparison of Price Range for Sample Procedures in the Philippines and in the U.S. andThailand, in US$, Early 2010sProcedures Philippines U.S. ThailandDental bridge 360 – 600 5,500 290 – 430Lasik eye surgery 1,000 – 1,500 3,000 650 – 900Heart bypass 11,000 – 25,000 90,000 – 144,300 23,000 – 25,000Nose lift 400 – 1,000 4,000 – 12,000 600 – 2,500Spa services 11 - 100 100 - 200 45 - 100Source: HealthCORE (2011)The industry has also been growing for over a decade, as shown in the figure below. Except fora dip in 2006, which probably reflects stalled demand arising from the impending recession 1 in mostWestern countries, health and wellness activities (inclusive of domestic and tourist-oriented services)have expanded apace. Specifically, revenues have consistently outpaced costs. The industry had grossrevenues of about PHP 80 billion in 2009, compared to gross costs of about PHP 53 billion.1 It would seem from this observation that medical tourist arrivals and expenses are a leading economic indicator as householdbehavior signals that the economy is going down. It was not until 2008 that the recession in the U.S. actually hit. Note,however, that the industry bounced quickly back the following year.ix
Revenue and Cost Trends of Selected Health and Wellness Activities in the Philippines, PHPBillion, 1999 to 2009908079.967068.51605040302040.2421.643.8325.5450.3430.4942.8850.2831.6452.45RevenuesCosts1001999 2001 2003 2005 2006 2009Sources: 1999 to 2005 from Virola and Polistico (2007); 2006 and 2009 from this study.A major industry problem is the paucity of data to determine the parameters of the localindustry and to establish baselines. While this problem has been recognized as early as 2007, it has notbeen acted upon. Key data such as medical tourist arrivals, expenditures, and services availed of arenot readily available. There are also very few formally written accounts of the industry and its subsectors,with the possible exception of the spa sub-sector. There are many news items and blogs, butthese are less reliable. Industry studies were not located for the medical sub-sector, and the completedreports by consultancy firms were proprietary and expensive.C. Benchmarking AnalysisBenchmarking is the process of comparing one’s business processes and performance metrics toindustry best practices or to other industries’ or countries’ practices. In benchmarking, the best firms,industries, or countries where similar processes exist are chosen, and the results are then compared tothe results of one’s own firm, industry, or country. Conducting this benchmarking analysis is motivatedby the need to find out where the local industry is relative to its leading competitors.The medical tourism industry is very young, and very little published literature exists in peerreviewedjournals. As in the domestic market, the global market is also marked by scarcity of formallywritten literature. There are many blogs and industry press materials, often marked by hype, some ofwhich are marked by careless analysis. Quantitative data that can be useful for metrics are scarce.In the absence of a commonly accepted set of standards to measure the industry, Todd’s (n.d.)“30 Key Findings from Medical Tourism Research” was used to assess the domestic industry relative toits counterparts in leading countries. The results are summarized in the matrix below, which shows thatalthough the Philippines meets most of the competitive yardsticks, there are glaring deficits, notably:x
Page 3: AbstractMedical Tourism in the Phil
Page 6 and 7: Table of ContentsAbbreviations and
Page 8 and 9: List of TablesTable 1. WTO’s Mode
Page 11: c. Epidemiologically, the disease b
Page 15 and 16: BenchmarksStatus10 Adoption of “h
Page 17 and 18: S.W.O.T. Analysis of the Philippine
Page 19 and 20: Chapter I. Background“Once your t
Page 21 and 22: Chapter II. The Global Market for M
Page 23 and 24: A major industry weakness is the ab
Page 25 and 26: B. Demand, Revenues, and Market Opp
Page 27 and 28: dermatology, 6.8 weeks; and cardiol
Page 29 and 30: trends globally since 1990 15 : (1)
Page 31: Table 5. Top 20 Medical Tourist Des
Page 34 and 35: Chapter III. Philippine Medical Tou
Page 36 and 37: f. HealthCORE’s (2011) estimate o
Page 38 and 39: seek better health care, 15 percent
Page 40 and 41: Cardinal Santos San Juan City P 197
Page 42 and 43: sources, bone marrow and peripheral
Page 44 and 45: found between siblings, but even th
Page 46 and 47: Zen Institute (medicalspa)Bonifacio
Page 48 and 49: control the dangers of poorly regul
Page 50 and 51: American Eye CenterAsian Eye Instit
Page 52 and 53: Medical andDental PracticesRate (ov
Page 54 and 55: The benchmarking exercise did not b
Page 56 and 57: d. Providence Hospital Inc., in Wes
Page 58 and 59: Patients/Consumers”) with 41 year
Page 60 and 61: Benchmark #14: Advancement in techn
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society for Quality in Healthcare a
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H. Travel and Accommodation Benchma
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Figure 3. Price Variation Among Sel
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Chapter VI. S.W.O.T. Analysis“Dev
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insider noted, “You cannot play i
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Continued high-cost care in advance
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“medical complication” (Medical
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Chapter VII. Conclusions and Next S
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ReferencesABS-CBN News (2013). Medi
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De la Cruz, Stef (2012). Is Stem Ce
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Marsek, P.W. and F. Sharpe (2009).
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Trade Daegu (2013). Daegu Global Me
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what have failed, and the means to
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Annex 3: Comments on the Draft Sena
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