Medical tourism opportunities and challenges: Illustration from US–India trade*

Abstract

Medical tourism constitutes one form of international trade in services. There has been continuing interest in the size of this segment of trade, the direction of this trade (e.g., west to east, south to north), the growth prospects for this trade, and the ability of tourism to disrupt healthcare delivery in the west. Unfortunately, research on this segment of trade has lagged behind the speculation and hype. This article examines the size and growth of this trade, and finds the volume nowhere near the original estimates. The article then examines the ability of US–India medical tourism to deliver on ‘value’ (quality divided by cost), solve the ‘iron triangle’ of healthcare (improving access and quality while controlling cost), and ‘bend the trend’ in rising healthcare costs. To deliver on this value, India's healthcare system will need to develop significant capabilities in areas that document quality improvement along with lower cost. The article concludes with a discussion of two trends taking place in both countries that can potentially thwart the disruptive force of medical tourism.

Keywords:

• Medical tourism
• Trade in healthcare services
• Disruption