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3-Mar-2009 |
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With medical tourism booming worldwide, can Australian providers get in on the game?By Bianca Nogrady
IT should have been a
routine operation: a knee
arthroplasty for an elderly
man that would have cost
about $15,000 and kept the
patient off his feet for perhaps
a few weeks. There would
have been some small risks of
complications, but in a high-
standard health care environ
ment such as Australia, it
should have been simple.
But the patient — perhaps
frustrated by the prospect of
being put on a waiting list or
unwilling to face the full cost
of undergoing the procedure
at a private facility — decided
to travel to India for the oper
ation. It was a decision both
he, and his doctors, would
come to regret.
Instead of enjoying a quick
trip up the waiting lists,
spending just $8600 on his
procedure and getting a holi
day in exotic India, the
patient developed a post-oper
ative infection with Mycobac
terium fortuitum. Four opera
tions, countless doses of
antibiotics and $140,000
later, the sad story of this oth
erwise straightforward proce
dure came to a close.
Toowoomba orthopaedic
surgeon Dr Anthony Wilson
was one of those charged
with the unenviable task of
cleaning up the mess — a
task made even more frus
trating given the patient was
originally his.
“People take it upon them
selves to go overseas, but the
problem is if they have com
plications,” Dr Wilson says.
“We’re stuck with it and we
don’t know what they did,
what antibiotics they used;
we’re completely in the dark
about how to treat this
person.”
It’s not the first case of med
ical tourism gone wrong, and
it certainly won’t be the last.
As more countries, including
Australia, realise the dollar
potential of touting their med
ical services to overseas clients;
as more individuals decide
they can get their procedure
done cheaper, faster or better
in another country; and as
international travel becomes
ever easier and cheaper, med
ical tourism is on the rise.
Medical tourism is most
often associated with cosmetic
surgery procedures but
increasingly, patients are trav
elling overseas for more seri
ous procedures, from knee
replacements to major cardiac
surgery.
A 2007 report by the
National Center for Policy
Analysis — a conservative US
think-tank — says the global
medical tourism industry
grossed about $US60 billion
(about $94 billion) in 2006, a
figure forecast to rise to
$US100 billion (about $153
billion) by 2012.
Another forecast by the
Deloitte Center for Health
Solutions, published in
August last year, projected
that medical tourism originat
ing in the US could jump 10-
fold over the next decade.
About 750,000 Americans
went overseas for health care
in 2007, and the report esti
mated that 1.5 million would
have sought health care out
side the US last year.
The global financial crisis
may lead to belt-tightening in
many areas of the economy,
but can only increase the
demand for discount medical
services, especially when
packaged with a holiday in
an attractive and cheap desti
nation. Even the health insur
ance industry is acknowledg
ing the inevitable, and many
insurance companies in the
US now cover the cost of their
customers undergoing elective
surgery overseas.
Medical tourism is big busi
ness, particularly for develop
ing countries such as India
and Thailand. Thailand was
something of an early pioneer
in the industry, and now
boasts the largest private hos
pital in South-East Asia, serv
icing more than one million
patients annually, 400,000 of
whom are international.
DR Peta Cook, an asso
ciate lecturer in sociol
ogy at the Queensland
University of Technology, says
there are various reasons why
medical tourism is so appeal
ing. “One of the motivating
factors is that, yes, it can be
cheaper to go and get some
kind of medical therapy over
seas,” Dr Cook says.
For example, a 2005 con
ference paper she co-authored
says a bone-marrow transplant
in the US would set a patient
back $US250,000 (about
$384,000). That procedure
can cost roughly 10% of that
in India.
Time is also a factor. “For
Australians it seems that a lot
of the flow has to do with not
being able to access the sur
gery quick enough,” Dr Cook
says. “But it’s also a motivat
ing factor when someone can
go overseas and get world-
class treatment and a holiday.”
It’s for this reason that
developed nations, including
the US, Singapore and Aus
tralia, are now jumping on the
medical tourism bandwagon.
“What we will see from
more developed nations such
as Australia and the US is that
they’ll sell their medical serv
ices but also sell-on local
attractions,” Dr Cook says.
While medical procedures
may not be cheap in the US
or Australia compared with
India or Thailand, they will
most likely be safer and of a
higher quality — something
that private health operators
are turning to their advantage.
AustAsia Pacific Health Ser
vices is one company taking
advantage of the downturn in
conventional tourism by mar
keting Australia as a destina
tion not just for a holiday, but
for a quality of medical service
not easily accessible in the rest
of the region.
“I think tourism on the
Gold Coast has been quite
depleted over the last 12
months,” says the managing
director of AustAsia Pacific
Health Services, Mrs Julie
Webb. “Australia has all the
ingredients that are required
to support medical tourism.
The Gold Coast in particular
has a lot of specialists, it’s
close to Brisbane, it can offer
a whole heap of medical pro
cedures and tourists can have
a nice holiday.”
The company specialises in
what it calls “executive med
ical checkups”, which combine
a two- to three-week holiday
to the Gold Coast, Brisbane or
Cairns, with an all-over med
ical checkup including chest
X-ray, ECG, spirometry, full
blood count, hepatitis A and B
screen, Pap smear or PSA test,
and urinalysis.
Many of the clients are Aus
tralians working in the Asia-
Pacific Region, Mrs Webb
says. “They come back to
Australia and while they’re
here having their holiday, I
arrange for them to have a
medical checkup because it’s
not offered in those countries.”
The company has now
started marketing its services
in areas such as the United
Arab Emirates. “We tried to
offer this in the Emirates
because we know a lot come
to the Gold Coast,” she says.
Mrs Webb says the private
health sector in Australia is
also starting to get in on the
act, albeit slowly. “The pri
vate sector is quite happy to
participate but it is more
‘you go get the patients and
we’ll look after them’,” she
says. “They’re happy to go
along with it providing I find
the patients.”
Some are becoming a little
more active. Mrs Webb says a
consortium of eight private
hospitals in Melbourne
recently collaborated in an
effort to attract cardiac
patients from Indonesia. A
noble effort, but one Mrs
Webb suggests is perhaps
missing the point of medical
tourism. “The trouble with
Victoria is they don’t really
have the beaches, they don’t
have the sun and the sand.”
It’s still early days for the
Australian medical tourism
sector, so there are no figures
available on how much the
industry is bringing into the
country and how many insti
tutions are involved. How
ever, the acting CEO of the
Australian Private Hospitals
Association, Mr Paul
Mackay, believes it’s still a
niche market for Australia.
“I think Australia certainly
does have a high standard of
health care, but it’s a compet
itive market,” Mr Mackay
says. And it is becoming even
more competitive, with a new
private hospital catering for
medical tourists recently
opening in Singapore.
One factor that may limit
Australia’s ability to grab a
significant market share is
availability, he says. The issue
of public waiting lists is rarely
off the media agenda and
unfortunately that also affects
the private sector, which Mr
Mackay says has very high
occupancy. “We would have
limited capacity to be able to
look in any large way to over
seas patients.”
AMA president, Dr
Rosanna Capolingua, sees
medical tourism in Australia
as a positive development.
“It showcases Australian
medicine to the world and
that’s a good thing,” Dr
Capolingua says. “Overseas
dollars injected into our
health economy are always
welcome.”
She is also confident that
the private sector would not
prioritise overseas patients at
the expense of locals.
“It’s not an issue of putting
any strain on the public
market,” she says. “The pri
vate sector market will only
take the overseas market on if
they have capacity; if [they]
haven’t [they will] just con
tinue to do the work they need
to provide for local market.”
However, Dr Capolingua is
slightly less enthusiastic about
the notion of Australians trav
elling overseas seeking medical
services. “If you have surgery
or treatment in Australia, we
have regulatory authorities,
we’ve got medical boards and
medical indemnity providers,
you’ve got protection,” she
says. “If you have something
done overseas and something
goes wrong, there might not
be any of those avenues for
protection or recourse.”
NOT all overseas medical
procedures end as dis
astrously as that per
formed on Dr Wilson’s
patient. In most situations, the
procedure will go smoothly
and the patient return happy.
But Dr Wilson says the diffi
culty is that patients don’t nec
essarily have access to the
same information about a pro
cedure, surgeon or medical
facility as they might do if they
were undergoing treatment at
home.
“Here the patients want to
know how many of these have
you done, what’s the infection
rate and so on,” Dr Wilson
says. “The [infection] rate over
here is about 1-2% for knee
replacement, but it could be
higher than that in those coun
tries and these people, they
don’t know.”
Going overseas for cosmetic
surgery or a knee replacement
also tends to forfeit an impor
tant relationship with the
doctor or surgeon. “The rela
tionship with a surgeon is
potentially a lifelong one,” Dr
Wilson says — or at least a
relationship for the lifespan of
the prosthesis. “They’re forgo
ing a long relationship with
the surgeon who understands
them quite well and will look
after them, not just their joints
but other things.”
Medical tourism also has
bigger implications for society
in general, says Professor Jane
Hall, professor of health eco
nomics at the University of
Technology, Sydney.
“The thing that it threatens
is the sense of social solidar
ity.
“There has been a sense of a
focus on equity both in financ
ing and access to services,”
says Professor Hall, who is
also director of UTS’ centre for
health economics research and
evaluation. “The whole idea
of medical tourism is com
modifying those services and
making them much more
responsive not to the needs of
individuals but the individual
ist.”
Not that this will stop Aus
tralians travelling overseas for
a cheaper procedure or pros
thesis. The call of the cut-price
nose job can only get stronger
as budgets get tighter. The best
the AMA can hope for is that
patients consult their GP
before they go and carefully
weigh the risks.
“Go and talk to your own
GP about it, what you’re
thinking of having done and
look at the options in Aus
tralia or at home so you can
really do the value judgment
about going overseas,” Dr
Capolingua says.
“If you’ve got enough
money, you could buy [what
you need] in Australia. You
don’t sit on a public waiting
list.”
THERAPY UPDATE: What GPs need to know medical tourism
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