The number of medical tourists in India will cross pre-pandemic levels in CY24
Medical tourism in India is set to see a boost, with forecasts suggesting that the number of medical tourists will exceed pre-pandemic levels.
According to data released by credit rating agency Crisil, the number of medical tourists visiting India is expected to be around 7.3 million in calendar year 2024, up from the estimated 6.1 million in CY 2023.
The last time these figures reached 7 million was in the year 2019, before crashing due to Covid-19-induced lockdowns.
Speaking about the reasons behind the recovery of medical tourism in India, Anas Abdul Wajid, senior director and chief sales and marketing officer at Max Healthcare, said that India has recently become a popular choice for ‘medical value travel’ and that the country’s potential in this area is expected to grow further.
“The availability of the best healthcare infrastructure, a pool of skilled and well-trained medical experts and cost-effective treatment alternatives make India an attractive destination for people seeking quality healthcare services,” he said.
The expected increase in medical tourists in India aligns with a positive outlook for the segment, with major hospital chains seeing growth in international patient revenues and looking to open their international outreach offices in new regions.
Hospitals looking for international patients
In its FY25 outlook for private hospitals, Crisil said that medical tourism, which generally accounts for 10 to 12 percent of hospital revenues, is expected to grow almost twice as fast as the overall growth rate of the sector.
While the international patient segment is poised for significant growth, hospital chains are already seeing their revenues from foreign medical tourism increase.
“Max Healthcare saw a 27 percent year-on-year (year-on-year) growth in its international patient revenue, of which the share of total hospital revenue was 9 percent during the nine-month period of FY24 (9 million),” Wajid said.
While international patient revenues for Fortis Healthcare remained virtually flat at Rs 113 crore in the third quarter of FY24, the company still contributed 7.7 percent to total hospital revenues in the period, according to data released by the company in its latest released an earnings call.
Speaking to Business Standard, Harinder Singh Sidhu, senior vice president and head of international business at Apollo Hospitals, declined to divulge the revenue breakdown and details. However, he emphasized that Apollo remains a top choice for treatment and care, trusted by countless international patients.
“We expect double-digit growth. With some of the new medical technologies and treatment programs, we expect a large number of patients to visit us for high quality treatment at a very affordable price,” said Sidhu.
Expansion of international services
Hospitals are lining up to increase the number of international outreach offices that can serve as “embassies” abroad. The top specialties in these hospitals that attract the most medical tourists are organ transplants (liver, bone marrow and kidneys), heart surgery (including pediatric heart surgery), oncology, orthopedics and neuroscience.
Max Healthcare currently has nine operational international offices in various parts of Asia and Africa. “We plan to add three more this financial year,” Wajid said.
Apollo and Fortis also plan to expand overseas outreach centers with a vision to venture into new regions.
Apollo Hospitals operates more than 20 outreach offices in multiple countries under the name Apollo Hubs. Sidhu pointed out that Apollo is looking to add five additional outreach hubs in Congo, Kazakhstan, Mauritius, Liberia and Iraq.
Commenting on the reasons behind the plans to increase the number of outreach centres, Anil Vinayak, Group Chief Operating Officer (COO) of Fortis Healthcare, said these centers provide assistance with basic queries, visa procedures, travel arrangements including flight guidance, planning doctor appointments and providing comprehensive treatment plans for people traveling to India.
“Fortis already has outreach offices in Nigeria, Kenya, Mongolia and Uzbekistan. We are now expanding in Saudi Arabia,” he said.
“This initiative will assist in capacity building programs within the chosen countries. We also conduct training programs for doctors and paramedics through observerships or hands-on sessions,” said Vinayak.
Medical tourists in India
*CY: calendar year; E: Estimate; P: Projection
*Source: Crisil Research
First print: May 5, 2024 | 11:44 PM IST