The objectives of this presentation are: To review the Arab healthcare market To describe the government policy and strategy To review the policy outcomes and problems

1. South Korea’s Policy & Strategy towards
Arab Healthcare Market
2017 Global Healthcare Policy & Management Forum
Jin, Ki Nam
Dept of Health Administration
Yonsei University

2. Introduction
Research Method
Healthcare Market in GCC
Government Policy & Strategy
Policy Outcomes and Problems
Contents

3. I. Introduction

4. Korea as a latecomer in global medical tourism market(2009)
From 60,000 foreign patients(2009) to 364,000(2016)
Cultural familiarity as an important factor(e.g., Hallyu, K-pop)
Market diversification (e.g., China, Japan, Russia, Mongolia, Arab)
Background

5. Growth of Arab healthcare market
Emergence of Arab healthcare market as a new opportunity for Korea
Abu Dhabi government sent first government patient to Korea in 2011.
Kuwait government sent first government patient to Korea in 2016.
Export of Korean hospital system to GCC(e.g., UAE, Saudi Arabia)
Background

6. The objectives of this presentation are:
1) To review the Arab healthcare market
2) To describe the government policy and strategy
3) To review the policy outcomes and problems
Objective

7. II. Method

8.  Questionnaire survey:
 March 3-14, 2016
 88 Arab patients
 Secondary data:
 Foreign patient statistics(2016)
Quantitative approach

9.  Interview:
 11 Interpreters
 2 Medical tourism facilitators
 Head of HAAD(Health Authority of Abu Dhabi)
Qualitative approach

10. Copyrightⓒ All rights reserved by Yonsei Univ. Institute of Health and Welfare.
III. Healthcare Market in GCC

11.  $71 billion market(2020)
 12% annual growth rate(2015 to 2020)
 Needs for 12,000 extra hospital bed(Alpen Capital report)
 The GCC governments' emphasis on the development of the
healthcare sector has resulted in several investment
opportunities for foreign government.
GCC market

12. 1. Before 2001
UK
Germany
USA
Kuwait
Saudi Arabia
Qatar
UAE
Oman
Outbound medical tourism market

13. 2. 2002 ~ 2014
UK
Germany
USA
S.Korea
Thailand
Malaysia
Singapore
Kuwait
Saudi Arabia
Qatar
UAE
Oman

14. Criteria of destination
selection
Management of service Concierge company (EU case)
1) Key criteria
-medical competence
-customer service
-treatment plan
-price
-LOS
-City environment
-Safety
2) Components of medical
competence
-Doctor’s reputation
-Clinical outcomes
-Citation
-Research fund
-Academic activities
-Affiliation at teaching
hospital
- Patient satisfaction survey
by KPMG
1) Selection of concierge company
-Every two years
-2 companies
2) Selection criteria
-Translator, driver
-Price
-Contract condition
-Visa
3) Payment of concierge fee
-Flat fee(Full flat or Semi flat fee)
<Health Authority Abu Dhabi – Office Munich>

15. Copyrightⓒ All rights reserved by Yonsei Univ. Institute of Health and Welfare.
IV. Government Policy & Strategy

16. Inbound
policy
Policy towards Arab Healthcare Market
Outbound
policy
Synergy Effect
Policy

17. Strategy
Legal &
institutional
System
G2G
Network
HR
Development
Information
System
Project
Support
Marketing
Government strategy
1) Certification of
medical institutions
2) Medical Visa
3) Task force team
1) Statistics on foreign
patients
2) Market information
Information
System
1) Korea Human Resources
Development Institute for
Health & Welfare
2) National Certificate of MT
coordinator
3) Certificate of medical
translator
1) $400 million fund
2) Business consultation
service
1) Medical Korea
Conference
2) FAM tour
3) Exhibition show
4) MT support center
5) Online website
1) G2G MOU
2) Visiting physician
temporary permit

18. V. Policy Outcomes & Problems

19. 1. Inbound Medical Tourism

20. Arab patients(2009 – 2015)
2009 2010 2011 2012 2013 2014 2015
614 949 1,821 2,165 3,515 5,485 6,101

21. Arab patients by type of services (2009 – 2015)
2009 2010 2011 2012 2013 2014 2015
Inpatient
27
(4.4)
137
(14.4)
255
(14.0)
235
(10.9)
454
(12.9)
908
(16.6)
928
(15.2)
Outpatient
587
(95.6)
737
(77.7)
1,417
(77.8)
1,792
(82.8)
2,866
(81.5)
4,400
(80.2)
4.918
(80.6)
Health
Exam
75
( 7.9)
149
( 8.2)
138
( 6.4)
195
( 5.6)
177
( 3.2)
255
( 4.2)

22. Average payment by type of services (2009 – 2015)
2009 2010 2011 2012 2013 2014 2015
Total 1,000 1,172 1,145 2,909 6,281 7,745 7,745
Inpatient 12,290 4,336 3,666 20,200 42,209 40,872 42,518
Outpatient 480 545 663 718 809 1,154 1,509
Unit: US$

23. UAE
Saudi Arabia
Egypt
Others
Distribution of patients by nationalities (2015)

24. 2. Export of Hospital System

25.  Public hospital
 248 beds
 In 2014, Seoul National
University Hospital (SNUH)
signed a contract to
manage a hospital.
 35 Korean doctors, 74
nurses, 61 hospital
administrators
Sheikh Khalifa Specialist Hospital

26.  The Cheil General Hospital &
Women's Healthcare Center in
Seoul signed a deal with Al
Garhoud Private Hospital to
open a fertility clinic in
Dubai(2016).
 Offering every necessary
support including medical staff
and relevant technologies(e.g.,
preimplantation genetic
diagnosis).
Fertility clinic in Dubai

27. 3. Problems

28. Socio-cultural difference
Socio-
cultural
Difference
Language
Halal
food
Religion
Life style
1) Shortage of interpreter
2) Higher cost
3) Risk of miscommunication
4) Customer dissatisfaction
1) Lack of Halal food/restaurant
2) Lack of nutrition
1) Shortage of player room
1) Sleep pattern
2) Eating habit

29. Difference in healthcare system & experience
Healthcare
Health
profession
Decision
making
DocumentConcierge
Korea-
Arab
network
1) Patient perception on nurse
as a profession
2) Gender preference of
healthcare providers
1) Role of extended family
1) Lack of Arabic document
1) Shortage of concierge
personnel
1) Low reputation of Korean
medicine & doctors
2) Lack of hospital network

30. Category Mean±𝐒. 𝐃
Doctor 4.51±0.81
Nurse 4.64±0.48
Interpreter 4.59±0.56
Hospital facility 4.00±0.69
Food 3.85±0.76
Concierge 4.20±0.73
Hotel 4.22±0.56
Tourism 3.63±0.65
Transportation 4.23±0.69
Arab patient satisfaction

31. Concierge
Company
Patient
Arabic
Government
Hospital
Translator
Financial
difficulty
Payment
after
discharge
Complaining
late payment
Partial
payment
Service
provision
Unfulfilled
demand
High cost
Payment issue
Financial
difficulty

32. Thank you
Ki Nam Jin
Dept of Health Administration
Yonsei University
Korea