UAE sets sights on medical tourism industry

With rising healthcare costs and hospital waiting times in Europe and the US, medical tourism has become a booming industry, especially in Asia.

Countries such as India, Thailand and Singapore can offer medical care for just 10% of the price that it would cost for similar procedures in the US.

Not surprisingly, approximately 750,000 Americans traveled outbound for medical care in 2007, and that figure is expected to increase to six million by 2010.

The amount of money at stake in the global medical tourism market is huge. McKinsey & Company estimates that the industry was worth $60bn in 2006, and will reach $100bn by 2012.

UAE poised for growth

The UAE is eager to gain a slice of this growing market and is quickly moving to bring its health care sector up to international standards.

In the last three years, 14 hospitals in the UAE have been accredited by the Joint Commission International (JCI) in the US, one of the world's leading accreditation organisations.

The latest of these is Sheikh Khalifa Medical City in Abu Dhabi, which in July received JCI status for its surgical pavilion, medical pavilion and outpatient speciality clinics.

The emirate has also teamed up with Harvard Medical School to operate Dubai Healthcare City, a 435-acre state-of-the-art 'centre of excellence' for clinical and wellness services, medical education and research aimed at competing with low-cost health care providing countries in Asia.

The UAE's Ministry of Health is at the forefront of developing the necessary infrastructure to attract medical tourists, says Nasser Khalifa Al-Budoor, the Assistant Undersecretary for International Relations and Health Affairs at the MoH.

'We'll be ready to start receiving medical tourists coming here with their families, whether for plastic surgeries, knee replacements or treatment of cardiovascular diseases. We have so many hospitals like John Hopkins, Harvard, where some of the biggest names are working,' Al Budoor noted.

He said in the past the Middle East would 'never have been considered a destination for medical tourists', but the situation in the UAE had completely changed.

'People would go to London for shopping with their families and receive a check up or undergo a small operation. Now Dubai is ready for this. We have so much to offer now, with certified hospitals from international agencies,' he said.

Challenges abound

The UAE is in a prime position to establish itself as an alternative destination for the booming medical tourism market, but it faces significant challenges in its bid to attract medical tourists.

Quality and cost are the key criteria that medical tourists look for, and the UAE faces hurdles on both fronts. Despite the rising number of hospitals receiving accreditation, the UAE is still struggling to establish a reputation as a safe destination for medical treatment.

Tellingly, many UAE nationals elect to travel abroad for medical procedures rather than have them at home. According to one report, about 62,000 UAE nationals sought medical treatment in Thai hospitals in the first seven months of 2006 alone.

Furthermore, the UAE government spends more than $2bn a year sending nationals overseas in order to receive medical treatment.

The UAE's medical care reputation was not helped by an incident earlier this year when a 27-year-old Emirati woman died after undergoing liposuction at a health clinic. Seven people, including a plastic surgeon and four nurses, face charges of malpractice in regard to the case.

Following the tragedy, the Ministry of Health enacted tougher measures against illegal clinics and uncertified doctors, particularly cosmetic surgeons, in a bid to regulate the health industry.

Stiff international competition

The UAE also faces challenges being the new kid on the block in a fierce market where other countries already have a well-established history of offering medical tourism.

Thailand, which received 1.2 million medical tourists in 2006, has gained a reputation for offering the best of both worlds - inexpensive plastic surgery combined with a five-star beach holiday.

Singapore, whose health system was ranked sixth in the world by the World Health Organisation in 2000, consistently earns high marks in international surveys of medical tourists. It is aiming to attract one million foreign patients a year by 2012.

India has also carved a niche as a world leader in medical tourism. Estimates of the value of medical tourism to India go as high as $2bn a year by 2012.

These countries have a huge competitive advantage compared to the UAE in terms of the price of medical care. For example, the average cost of heart by-pass surgery in the UAE is $44,000, compared to $18,500 in Singapore, $11,000 in Thailand, and $10,000 in India.

'There are so many issues relating to medical tourism, and because the area is developing so quickly it's becoming essential that hospitals, insurers and policy makers, work together closely to streamline processes to cater to this market,' said Sietske Meerloo, Marketing Manager at IIR Middle East, which will be hosting an event in Dubai in November exploring medical tourism issues.

See also:
Middle East tourism to soar despite global economic gloom