MEDICAL INSURANCE

Medical insurance is seen as the fastest growing segment in the Indian economy.

A recent outcome of the privatisation of health services in India has been the growth of medical tourism to the extent that this sector is perceived as a fast-growing segment of the economy. India is a recent entrant into this industry and is expected to become a $2-billion business by 2012.

The driving force behind medical tourism is its cost effectiveness and the possibility of attracting substantial tourism revenue. Medical care, packaged with traditional therapies like yoga, meditation, ayurveda, allopathy, and other traditional systems of medicines, attract high-end tourists especially from European countries and the Middle East.

Kerala has pioneered health and medical tourism in India. But low- cost treatment is the ultimate factor weighing in favour of India. Medical care costs only one-fifth of the costs in the West. So if a particular surgery costs $30,000 in the West, it would cost only $6,000 in India.

India has gained acceptance in areas of medical care such as organ transplant, knee replacement, open-heart surgery and others because of the efforts of the corporate sector in the medical as well as tourism industry. The state-of-the-art equipment and well-qualified practitioners at these hospitals is what attract patients from other countries.

It is estimated that foreigners account for about 12 per cent of all patients in top hospitalsof Mumbai, like Lilavati, Jaslok, Breach Candy, Bombay Hospital, Hinduja Hospital, Apollo and Wockhardt.

While on the one hand this industry enthuses the tourism ministry, state tourism boards, travel agents, tour operators and hotels, it poses new concerns, since a price advantageis not enough to attract patients. Health and tourism industries need to pool their resources to improve medical standards, clinical expertise, insurance coverage and appropriate infrastructure.However, the cost effectiveness works as a boon only for a fraction of patients who can afford to migrate from their countries where these services are expensive. They come to countries like India, where they can afford almost the same quality of treatment but with the additional excitement of tourism.

Only specialised hospitals run by large private corporate entities are currently able to provide medical tourism. A large influx of the well-heeled or foreign parients could lead to a reverse brain drain with government medical practitioners migrating to these affluent centres of medical excellence, to the detriment of the poor.

At present, about 59 per cent of medical practitioners are located in the cities, though the bulk of India's population lives in the remote rural interiors, which any way are deprived of basic healthcare facilities.

So while private airlines gear up to fly passengers and hotel spas prepare themselves to offer esoteric therapies, the government must roll up its sleeves to ensure this imbalance is not caused in the social sector, while welcoming foreign patients who bring in valuable revenue.