1 st German Arab Health Care Forum Berlin, Wednesday, 13 th of December 2006

F.Oel. GHORFA – 1st. Health Care Forum Berlin 2006 1

A new approach forA new approach for

Health Care TourismHealth Care Tourism

The transfer of knowledgeThe transfer of knowledge and experience from and experience from Germany to Middle East is opening new Germany to Middle East is opening new

sustainable Business Modelssustainable Business Models

A new approach forA new approach for

Health Care TourismHealth Care Tourism

The transfer of knowledgeThe transfer of knowledge and experience from and experience from Germany to Middle East is opening new Germany to Middle East is opening new

sustainable Business Modelssustainable Business Models 1st German Arab Health Care Forum Berlin,

Wednesday, 13th of December 2006Prof. Dr. Dr.h.c. Fried OelschlegelSaudi German Hospitals Group


Healthcare Tourism; Healthcare Tourism; trial of a definition trial of a definition

Definition: The term refers to the increasing tendency among people from the developed, developing, and underdeveloped countries, or regions , where medical services are either very expensive, or not available, to leave their countries in search for more affordable health options, often packaged with tourist attractions.

The common perception is : Patients traveling to doctors depend from offered ( expected) quality, price, and waiting time of cure

Medical tourism is the act of traveling to other countries to obtain medical, dental, and surgical care. The term was initially coined by travel agencies and the media as a catchall phrase to describe a rapidly growing industry where people travel to other countries to obtain medical care, while at the same time touring, vacationing and enjoying the attractions of the countries which they are visiting.


Health Care tourism is moreHealth Care tourism is more ……

Patients traveling to doctors.

Doctors traveling to patients.

Doctors traveling to (meet) doctors (conferences).

Doctors traveling for further education & training.

Students traveling for education.

Medical companies traveling for business.

Health Care tourism is an esteemed but growing market of annual app. 80 billions US $ at present ( WHO; Yearbook 2005 )


Receiving ( accredited ) high-quality health care more cheaply and more quickly in some developing countries as Poland , Hungarian, but also Singapore, Thailand, Indonesia.

Increasing presence of a large sector of citizens without health insurance, and even more with health coverage that they consider inadequate.

Some employers, but also Insurance companies concerned about rising health care costs, are using financial incentives to encourage employees / clients to experiment with medical tourism.

No advance care on the spot ; specialized care limited available e.g. Middle East.

Long waiting list’s for standard performances to increasing prices ; collapsing Health Care Systems in Europe and America.

Five main sources….Five main sources….


Medical Tourism Medical Tourism Perceptions & WorriesPerceptions & Worries

Negative Perceptions

Hygiene/Unsanitary

Pollution

Backward &Bureaucratic

Foreign Patient’s Point of View

Accreditation

No Uniformity

ISO, CRISIL, ICRA

WEST: JCIAHO

Medical Insurance

Inadequate Cover

Underdeveloped

Insurance Frauds

No Global Players

Overseas CompaniesRefuse

Reimbursements

Connectivity

No Flights!!

Bad Roads

Backward

Instability

Terrorism Prone

Communal Unrest


Countries Promoting Healthcare Countries Promoting Healthcare TourismTourism

Example-South Africa specializes in medical safaris :Visit the country for a safari, with a stopover for Plastic Surgery, a Nose Job, and a chance to see lions and elephants


Prices Comparison of some Medical Prices Comparison of some Medical Procedures:Procedures:

Procedure

in $

US UK Burmungrad Bangkok

Max Healthcare

India

Raffles

Singapore

Angioplasty 3000021000-27000

4000 - 5000 4000 - 5000 5000

Angiography2500 - 3000

2000 1100 400 800

Hip replacement

1900013000-16000

4300 6000 6600

Knee replacement

27000-32000

16000-18000

- 6000 6000

Lasik2250-2900

750 400 -


Tourist Arrivals ForecastTourist Arrivals Forecast

Tourist arrivals by receiving regions, 1950-2020

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

1950 1960 1970 1980 1990 2000 2010 2020

mill

ion

s

South AsiaMiddle EastAfricaEast Asia/PacificAmericasEurope

Actual Forecasts

699 mn

1.006

1.561 In 2005:more than 1.6 Mill people pur -chased travel - and healthcare tours to Asia.

150,000 foreigners sought care in 2004 in India alone; for 2005 and the following years a 15% growth annually is esteemed .

Medical tourism in India is forecast to generate over $2 billion in revenue by 2012, according to a study by McKinsey, and the Confed-eration of Indian Industry. Dubai has increased the number of tourists

from 2001 = 3,63 Mill to 6,67 Mill in 2006; the goal is 15 Millions tourists in 2010


What are the benefits ( 1 ) ? What are the benefits ( 1 ) ?

Tangible:

Source of additional national income through wealth transfer from foreign countries .

Cost advantages in tariff over the developed countries.

Creating attractive working places.

Improve information sharing.Increase efficiency of patient care process, reducing / cutting of waiting lists.Strategic alliances with business partners within and outside the country.

Technology and knowledge transfer.Better logistics performances both in internal and external.


What are the benefits ( 2 ) ?What are the benefits ( 2 ) ?

Better utilization of Infrastructure and skilled manpower.Opportunity for development in infrastructure in Health, Tourism and Travel.Connectivity & synergy effects with air, road, rail and information and communication industries.Clustering of medical Travelers – new business fields.Health opportunities for foreign patients may lead to better health care standards for Nationals.Scope for Research and Development to offer comprehensive medical solutions.


What are the benefits ( 3 ) ?What are the benefits ( 3 ) ?

Intangible:

International acceptance and reputation for the country as a global healthcare provider.

Social and cross cultural experience.

International customer relations.

Global Marketing and Medical Trade relations.

Brand image of nation as world class healthcare destination – attractive investment place !!!

Patient satisfaction & Competitive advantage.

Strategic Public - Private Partnerships.


Is there something what makes Is there something what makes Germany more attractive as India, Germany more attractive as India, Singapore, Dubai, Cape town …. ?Singapore, Dubai, Cape town …. ?

► better prices ?► better medical quality ?► better educated , trained and motivated medical staff ?► better equipped and designed hospitals ?► better international accredited and controlled quality ?► lower infection rate; lower mortality rate, lower complication rate ?► better service for patients and relatives ?► better understanding and tolerance for other cultures and religions ?► more attractive traveling facilities and airports ?► more attractive tourist destinations ?► more safety ?

What could be the arguments for going to Germany ?


Good & bad cards Good & bad cards

Some is matching – the most doesn’t fit ! Not matching are all these aspects which are related to the German governmental organized Health Care System.Unchanged and a high reputation – also under competitive aspects - have : 1. The high quality of excellent educated, trained and further educated medical staff. 2. The German skills – hard worker, discipline, organized, culture of thinking.3. The ethical common understanding for patients and their personal needs.Result : The particular (doctor, nurses etc) YES ! ; The system – NO !!! Bad cards in the game !


Consequences – Consequences – globalization of Health Careglobalization of Health Care

The old clichés and methods of marketing to attract the “wealth Arab private patients” to come to Germany for treatment by blue eyes and fairy hair is a running- out model.

Far away from the global reality are the “ underdeveloped “ health care systems outside of Europe or USA.

Strong and sustainable competitors are coming up in South Africa, India, Thailand, Indonesia, Malaysia, Singapore, Dubai – and only a question of time – from China with the same or better quality, lower prices and much better customer focused service.

Health Care City projects are in real planning and under construction in Shanghai, Delhi, Istanbul, Tripoli, Kuala Lumpur at present.

All these projects are designed to attract foreign patients, all are focused on Health Care Tourism. There will be a surplus of capacities; the global market will switch from a demand market to a supply market.

The offers on these markets will be comprehensive with an integrative approach of all fields of medicine.


MEDICAL COLLEGEMEDICAL COLLEGE

PRIVATE CLINICS & DAY-CARE POLYCLINICPRIVATE CLINICS & DAY-CARE POLYCLINIC

TERTIARY HOSPITALTERTIARY HOSPITALAcademic Medical Academic Medical

CentreCentre

NURSING NURSING SCHOOLSCHOOL

FURTHER FURTHER EDUCATIONEDUCATION FACILITIES FACILITIES

CENTERS OF CENTERS OF MEDICAL EXCELLENCEMEDICAL EXCELLENCE

FITNESS / FITNESS /

WELLNESS & REHABILITATIONWELLNESS & REHABILITATION

GOVERNMENTGOVERNMENT

INDUSTRYINDUSTRYPLAYERSPLAYERS

Health Care Tourism- The integrative approach -

HEALTH CARE PROVIDER


The reverse tendencies and directions

Patients traveling to regional medical centre of excellence, near to their families

Doctors traveling to regional medical centre of excellence with their belongs:

Knowledge Experience and Skills


The effectsThe effects

Doctors traveling to a pool of patients – more economic efficient.Patients must not leave their social, cultural and religious environment.The money for treatment will be re-invest in the home country.The doctors have the same or better working conditions and better compensations.The effect for education, further education and practical training for the patients country is a very important added value.The “network” between the local Medical Centre of Excellence and the home countries ( organization to organization ) will be more effective and sustainable than between persons ( doctors) to persons ( patients ).The new approach will stop and turn over the “ brain train “ from developing / developed countries to the Europe and the USA. The young national countries will cut the bonds of dependence from the West and will develop an own and competitive health care system.


The SGH approach in practice

Sample 1: 2005

132 German C3/C4 professors are working as locums in SGH Hospitals at present ; they have treated 8.230 patients stationary and app. 14.800 ambulatory.

For treatment “ at home in Germany “ they have encouraged additional app. 950 patients.

They gave app. 530 lectures and training courses for their colleagues in KSA and Yemen

The “ lasting win-win effect “ from this kind of cooperation : personal, political and economical for both parties is much more important than to attract patients to come to Germany;

Traditional Health Care tourism – no need !

Sample 2: SGH Hospital Sana’a (Yemen)

Yemen has spent app. 300 Mill US$ for stationary treatment of Yemenites in Jordan cause the lack of tertiary hospitals. SGH has invest app. 50 Mio USD in this 300 beds hospital, the Government became a Joint Venture Partner; no any patient has to be send abroad; the money for treatment will remain in Yemen;



andand more ….more ….

Sample 3 : SGH Dubai- Al Barsha General Hospital + 6 Centre of Medical Excellence; 600 beds

First “ real” Joint Venture as PPP between the private organized SGHG with governmental German Universities in different structured partnership.

German Universities are offering in defined medical & managerial responsibility medical performances as own braches under their brand “ on the spot “;


Sample 4:

SGHG has signed last month a contract with an USA global player in the medical industry to built up a hospital chain of 10 Non-For-Profit Hospitals in Africa with participation of the great develop-ment funds , charity- foundations and doctors organization. Patients from Africa – if they need advanced medicine help – must not more travel abroad-



This approach is our strategyThis approach is our strategy

We invest in these countries from them we knows that patients have to travel abroad to achieved “ state of art medicine “

We design , construct and equip in these countries hospitals which are fulfilling international standards ( DIN 1469 ) by German Architects.

We bring in these countries German knowledge, experience and skills by our German “Visiting Professors” as “ state of art medicine “

We add to our investments in medical care also investments in medical education by German curricula and exchange program

We are doing that in KSA, Yemen, UAE, Sudan, Libya, Egypt, Ethiopia, Turkey, Kazakhstan, Pakistan, and…

Other well known groups as APOLLO, WOCKARDT, NETCARE, CAPIO, JOHN HOPKINS, HARVARD… have similar strategies – going to the markets of future – and these are in Africa and Asia.


We are looking for partners We are looking for partners to share our vision ……to share our vision ……

…to help developing countries in Africa and Asia to improve a national health care system which is tailored on the regional needs and offering basic & advanced medical care in “ state of art quality”, to suitable prices with an unlimited access for all – to make these countries independent from each kind of the traditional Health Care Tourism to going abroad - to Europe or USA; except in very rare cases and circumstances, Insha Allah !

At least : To all Representatives of the Governments, Universities, the medical & pharmaceutical Industry, the Finance Institutions -

Feel free to be invited to come with us and to contact us .

Not the “ tourism “ is the solution for the Health Care Systems ; crossing borders COOPERATION is the most important term of

our common future for the sake of the mankind.


“It is not the strongest of the

species that survives, not the most intelligent,

but the one most responsive to change.”Charles Darwin ( 1809 – 1882 )

A WORD OF THOUGHTA WORD OF THOUGHT

1 st German Arab Health Care Forum Berlin, Wednesday, 13 th of December 2006

Documents

Transcript of 1 st German Arab Health Care Forum Berlin, Wednesday, 13 th of December 2006