Medical tourism can be defined as the process of traveling outside the country of residence for the purpose of receiving medical care. Growth in the popularity of medical tourism has captured the attention of policymakers, researchers, and the media. Originally, the term referred to the travel of patients from less-developed countries to developed nations in pursuit of treatments not available in their homeland. what is the medical tourism

Today we are experiencing both qualitative and quantitative shifts in patient mobility, as people travel from richer to less-developed countries in order to access health services. Such shift is mostly driven by the relatively low-cost of treatments in less developed nations, the availability of inexpensive flights and increased marketing and online consumer information about the availability of medical services.

As healthcare costs in the US and other parts of the world are excessively soaring, many employers and insurance companies started to view medical tourism as a way to lower them. More and more countries around the globe start to see the financial benefits of this emerging market, so they offer premium medical services at notably lower prices.

According to the latest Allied Market Research report, the global medical tourism market was pegged at $104.68 billion in 2019 and is anticipated to reach $273.72 billion by 2027, registering a CAGR of 12.8% from 2020 to 2027.

Categories of different treatments and their availability also represent an important factor in the decision to engage in medical tourism. The most common types of procedures that patients pursue during medical tourism trips are elective cosmetic surgery, dentistry, organ transplantation, cardiac surgery and orthopedic surgery.

Affordable good quality care, accessible information and care, and support from government agencies and associations fuel the growth of the global medical tourism market. On the other hand, limited coverage, lengthy partial reimbursement by payers, and difficulties related to travel, language barriers, and VISA approval issues impede the market growth.

However, overseas promotion offers and wide hospital networks under insurance coverage for cashless transactions usher a plethora of opportunities in the near future.

Covid-19 scenario: what is the medical tourism

• The global medical tourism industry has been through an unprecedented disruption during the Covid-19 outbreak, which resulted in uncertainty in demand for various medical products and industrial applications.
• Prolonged lockdown, on the other hand, disrupted the supply chain which affected the manufacturing processes as well as creating a shortage of raw materials.
• China and India, which are among the major medical tourism destinations have undergone adverse impacts due to the Covid-19 outbreak and country-wise lockdown. Also, travel restrictions and postponement of cross-border travel further affected the medical tourism market.
• The government bodies, however, are now initiating to loosen up the regulations, which may assist the industry to recoup soon.

The cancer treatment segment dominated the market in 2027

Based on technology, the cancer treatment segment accounted for the largest share in 2019, with nearly one-fifth of the global medical tourism market. This is attributed to an increase in the number of cross-border travelers seeking quality cancer treatment and reduced costs in different countries. On the other hand, the orthopedic treatment segment is projected to register the highest CAGR of 14.8% during the forecast period. Orthopedic treatment is one of the most widely performed services globally. This factor drives the growth of the segment.

Asia-Pacific to rule the roost, North America to grow at a pace by 2027

Based on region, the global medical tourism market across Asia-Pacific dominated in 2019, with more than one-third of the market. Additionally, the region is also anticipated to manifest the highest CAGR of 13.6% during the forecast period. This is owing to the availability of quality care at the relatively low cost of treatments, inexpensive flights, and an increase in marketing & online consumer information about the accessibility of medical services. At the same time, the market across North America is expected to grow at a CAGR of 11.4% during the forecast period.

Key market players: what is the medical tourism

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