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Curtis Palmer
                                                                             TSEA: Period 1
                                                                               May 19, 2011
                        Benefits of Thailand‟s Medical Hub Policy


       “Back when I was in North Carolina my 53-year-old husband, Howard
       Stoop, was diagnosed with a broken Mitral valve. When we explained
       that Howard had no health care the doctor told us more bad news,
       that we would have to pay 100,000 us dollars up front for surgery and
       then 100,000 dollars later on for post-surgery treatment. Because
       neither Howard nor myself had even half of the money required for
       the surgery, I searched for alternatives. A few weeks later we flew to
       Thailand where my husband was able to have his heart surgery for
       more than half the price.”

       Medical tourism is when a somebody goes to a foreign country seeking medical
heath care for a cheaper price than it is in their own country, recently Thailand has
developed into a desired medical destination for tourism from continents such as the US,
Europe and wealthy Asian countries (Ji). The number of medical tourists has increased
from almost nil to 450,000 a year in less than a decade. The number of medical tourists in
Thailand is increasing at a yearly rate of 16% (NaRonong). Medical tourism is seen by
most countries as an opportunity to generate more national income. However, with out
considering many variables medical tourism can become a problem for the public health-
care systems (NaRonong). Although it can be argued that medical tourism does not
benefit all of Thailand, there are many positive aspects, such as social benefits, putting a
stop to the „brain drain‟ and economic improvement for the nation.


       There are several ways that Thailand‟s health care will benefit in the long run
from medical tourism. Medical tourism in Thailand will inspire more doctors to train and
soon there will be enough doctors and physicians for both medical tourists and Thai
citizens (Fernquest). Tourists are usually more attracted to destinations with better
national health care. For example in the 2004 tsunami in Pukhet, Thailand‟s health care
was able to tend to all of the injuries caused by the natural disaster (Fernquest). By 2010
medical graduates will increase from 1500 per year to 2300 per year and exceed the
number needed (NaRonong). Medical tourism is causing Thailand to have an over all
improvement on both public and private health care and will eventually lower the prices
of health care because hospitals will be competing to have the lowest price on the market
making health care more affordable for middle-class Thais.


       The Medical Hub policy is addressing the intentions of Thailand becoming the
main destination for medical tourism; this is causing a brain drain and many of the
doctors to want to leave the government hospitals for a higher salary in private hospitals
leaving fewer doctors for the poor in the rural areas of Thailand (Chambers). The
hospitals that are successful in the medical tourism industry are luring all of the well-
educated doctors, physicians and nurses. A full time physician would be able to see only
14 to 16 foreign patients per day rather than seeing 40 to 48 local Thai patients
(NaRonong). Thais who cannot afford to go to those hospitals will most likely be treated
with less advanced health-care (NaRonong). Bangkok city already has 8 times as many
doctors per capita as the worst served rural areas meaning that their access to health care
is not as efficient as it should be (Chambers). Private hospitals in other countries such as
Malaysia and Singapore are competing with Thailand for this market of medical tourism
meaning that Thailand has to find a way to market their medical tourism to be known as
the very best destination for medical tourism (Fernquest).


       By having Thailand as a medical tourism Center it is hoped that Thai specialist
doctors will be attracted to work back in Thailand to save Thai doctors the trouble of
having to go to foreign countries to work (Chambers). Thai doctors are no less qualified
than foreign doctors who were educated in Europe and the US (Ji). For example Doctor
ChartChai Rattanamahattana graduated from medical school from Mahidol in 1982 and
then went to America to train for plastic surgeries in Los Angeles and Cleveland. Doctor
ChartChai has been on the Board Certified in Plastic Surgery since 1987 and has working
at Samitivej hospital since 1995. Hospitals that are successful in the medical tourism
industry are luring all of the well-educated doctors, physicians and nurses, back to
Thailand. All of the Thais who can go to these hospitals will be treated with advanced
health care and can expect the best results possible. (NaRonong). In the Philippines there
there is a shortage of doctors and hospitals because of the brain drain of doctors and other
medical staff to foreign countries. Medical tourism is a solution to this problem because it
will give doctors a reason to stay in Thailand to provide health care for both Thai people
and foreigners traveling to Thailand.


       Due to the incoming Foreigners, the standards of the Hotels and prices of
surgeries have increased making it increasingly difficult for Thai middle class to afford
private hospital treatment (Chambers). Well-known economist, AmmarSiamwalla is
opposed to the plan and says that “Huge national health care would have to be invested in
this project and as a result only private hospital owners and staff would benefit
(Fernquest).” salary of doctors in private hospitals is 9 times more than that of a doctor in
a public hospital and this will cause more wage inflation in Thailand and will cause a
greater gap between the rich and the poor (Chambers). Thailand may become too reliant
on the medical tourism income and there are many risks that come with relying on one
aspect of an income (Ji). In 2010 the news blew the Red Shirt protest news out of
proportion and it made a lot of tourists scared to come to Thailand. Political protests and
natural disasters can cause tourists to stop coming to Thailand so the Thai economy
cannot become to reliant on tourism as their primary income.


       Medical tourism helps generate income for the medical sector, the tourist sector
and all other related businesses (NaRonong). In 2008, medical tourism in Thailand
generated 50 billion baht of revenue from medical services plus 12 to 13 billion from
other related tourism meaning medical tourism is an important part of Thailand‟s income
and these values are estimated to increase significantly over the coming years
(NaRonong). Thaksin called for establishing Thailand as a leader in international medical
tourism.Medical tourism generates an approximated value equal to 0.4% of the GDP, and
medical tourism helps raise the income of the medical sector and all related services such
as hotels. He believed it would bring huge financial gains to the country (Chambers). By
2015 it is predicted that medical tourism will bring in 100 billion baht ($3.3bn)
(Chambers).

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TSEA Medical Tourism Research Paper

  • 1. Curtis Palmer TSEA: Period 1 May 19, 2011 Benefits of Thailand‟s Medical Hub Policy “Back when I was in North Carolina my 53-year-old husband, Howard Stoop, was diagnosed with a broken Mitral valve. When we explained that Howard had no health care the doctor told us more bad news, that we would have to pay 100,000 us dollars up front for surgery and then 100,000 dollars later on for post-surgery treatment. Because neither Howard nor myself had even half of the money required for the surgery, I searched for alternatives. A few weeks later we flew to Thailand where my husband was able to have his heart surgery for more than half the price.” Medical tourism is when a somebody goes to a foreign country seeking medical heath care for a cheaper price than it is in their own country, recently Thailand has developed into a desired medical destination for tourism from continents such as the US, Europe and wealthy Asian countries (Ji). The number of medical tourists has increased from almost nil to 450,000 a year in less than a decade. The number of medical tourists in Thailand is increasing at a yearly rate of 16% (NaRonong). Medical tourism is seen by most countries as an opportunity to generate more national income. However, with out considering many variables medical tourism can become a problem for the public health- care systems (NaRonong). Although it can be argued that medical tourism does not benefit all of Thailand, there are many positive aspects, such as social benefits, putting a stop to the „brain drain‟ and economic improvement for the nation. There are several ways that Thailand‟s health care will benefit in the long run from medical tourism. Medical tourism in Thailand will inspire more doctors to train and soon there will be enough doctors and physicians for both medical tourists and Thai citizens (Fernquest). Tourists are usually more attracted to destinations with better national health care. For example in the 2004 tsunami in Pukhet, Thailand‟s health care was able to tend to all of the injuries caused by the natural disaster (Fernquest). By 2010 medical graduates will increase from 1500 per year to 2300 per year and exceed the
  • 2. number needed (NaRonong). Medical tourism is causing Thailand to have an over all improvement on both public and private health care and will eventually lower the prices of health care because hospitals will be competing to have the lowest price on the market making health care more affordable for middle-class Thais. The Medical Hub policy is addressing the intentions of Thailand becoming the main destination for medical tourism; this is causing a brain drain and many of the doctors to want to leave the government hospitals for a higher salary in private hospitals leaving fewer doctors for the poor in the rural areas of Thailand (Chambers). The hospitals that are successful in the medical tourism industry are luring all of the well- educated doctors, physicians and nurses. A full time physician would be able to see only 14 to 16 foreign patients per day rather than seeing 40 to 48 local Thai patients (NaRonong). Thais who cannot afford to go to those hospitals will most likely be treated with less advanced health-care (NaRonong). Bangkok city already has 8 times as many doctors per capita as the worst served rural areas meaning that their access to health care is not as efficient as it should be (Chambers). Private hospitals in other countries such as Malaysia and Singapore are competing with Thailand for this market of medical tourism meaning that Thailand has to find a way to market their medical tourism to be known as the very best destination for medical tourism (Fernquest). By having Thailand as a medical tourism Center it is hoped that Thai specialist doctors will be attracted to work back in Thailand to save Thai doctors the trouble of having to go to foreign countries to work (Chambers). Thai doctors are no less qualified than foreign doctors who were educated in Europe and the US (Ji). For example Doctor ChartChai Rattanamahattana graduated from medical school from Mahidol in 1982 and then went to America to train for plastic surgeries in Los Angeles and Cleveland. Doctor ChartChai has been on the Board Certified in Plastic Surgery since 1987 and has working at Samitivej hospital since 1995. Hospitals that are successful in the medical tourism industry are luring all of the well-educated doctors, physicians and nurses, back to Thailand. All of the Thais who can go to these hospitals will be treated with advanced health care and can expect the best results possible. (NaRonong). In the Philippines there
  • 3. there is a shortage of doctors and hospitals because of the brain drain of doctors and other medical staff to foreign countries. Medical tourism is a solution to this problem because it will give doctors a reason to stay in Thailand to provide health care for both Thai people and foreigners traveling to Thailand. Due to the incoming Foreigners, the standards of the Hotels and prices of surgeries have increased making it increasingly difficult for Thai middle class to afford private hospital treatment (Chambers). Well-known economist, AmmarSiamwalla is opposed to the plan and says that “Huge national health care would have to be invested in this project and as a result only private hospital owners and staff would benefit (Fernquest).” salary of doctors in private hospitals is 9 times more than that of a doctor in a public hospital and this will cause more wage inflation in Thailand and will cause a greater gap between the rich and the poor (Chambers). Thailand may become too reliant on the medical tourism income and there are many risks that come with relying on one aspect of an income (Ji). In 2010 the news blew the Red Shirt protest news out of proportion and it made a lot of tourists scared to come to Thailand. Political protests and natural disasters can cause tourists to stop coming to Thailand so the Thai economy cannot become to reliant on tourism as their primary income. Medical tourism helps generate income for the medical sector, the tourist sector and all other related businesses (NaRonong). In 2008, medical tourism in Thailand generated 50 billion baht of revenue from medical services plus 12 to 13 billion from other related tourism meaning medical tourism is an important part of Thailand‟s income and these values are estimated to increase significantly over the coming years (NaRonong). Thaksin called for establishing Thailand as a leader in international medical tourism.Medical tourism generates an approximated value equal to 0.4% of the GDP, and medical tourism helps raise the income of the medical sector and all related services such as hotels. He believed it would bring huge financial gains to the country (Chambers). By 2015 it is predicted that medical tourism will bring in 100 billion baht ($3.3bn) (Chambers).