BUSINESS DEVELOPMENT STRATEGIES FOR MEDICAL TOURISM

FACILITATORS IN EMERGING MARKET

( A CASE STUDY FROM DEVELOPING COUNTRIES- AFRICA )

MEDICAL TOURISM CONGRESS

WASHINGTON DC, SEPT. 20 – 24, 2014

Adeniyi Akofiranmi

21 February, 2014

About The Author

Adeniyi Akofiranmi, MBA

A Business Development Strategist with significant experience in marketing, brand management (including

online and social media) and strategic marketing for over 4 years. He has a Strong Marketing communications

experience and a good understanding of technology as a tool for solving business problems.

Adeniyi was Head, Business Development at Diamond Helix Medical Assistance Ltd, a Leading medical

consulting firm based in Nigeria with specialities in Medical Tourism, Patient Referral, Emergency and Air

Ambulance Evacuation. He was able to turn the business from just barely surviving to a very robust and

sustainable model. During his time as the Head of Business Development and later COO, the company

experienced a 52% revenue growth and a doubling of the EBITA margin compared to 2010. He also developed the

concepts for the company online strategies and alternative advert mediums thereby increasing brand visibility.

He presently works with the Value Segment of Healthcare division of Philips where he is involved in Sector and

Marketing Strategy in West Africa, Nigeria. He developed a revenue forecasting model for Healthcare Sector

Marketing. He also developed a “Path to Leadership” framework to provide strategy for successful entry and

diversification.

He has facilitated and been involved in organizing several medical events and in Nigeria including the 1st NMA

National Health Summit 2013. He presently consults for ihealthconnekt India.

In this presentation, he shares trade secrets and case studies from his experience in development and leadership

within the Medical Tourism market for players within the emerging markets with Africa as a focus.

OBJECTIVE

At the end of the presentation

Attendees will be able to apply proven techniques to increase bottom line

Improve their value proposition

Learn techniques on leveraging on relationship.

Become a key player in the development of overall Healthcare service delivery within their countries.

Use knowledge transfers to increase business.

The Presentation focuses on how business owner in Patients ReferralBusiness from Emerging Economies can Strategically improveservices, offer value and increase their bottom line.

It identifies key gaps in our knowledge and important policy decisionsthat influence medical tourism.

It also presents case studies with proven ROI.

Do not go where the path may lead, go instead where there is no path and leave a trail." - Ralph Waldo Emerson

OUTLINE

Introduction

Trend and Analysis

Marketing Overview

Business Development Model and Study Case

Summary

Conclusion

INTRODUCTION

HEALTHCARE OUTSOURCING

A growing number of patients are crossing borders for health

services they cannot afford or access at home

In many respects, the growth of the medical tourism industry is

as a result of the failures of domestic health systems.

THE GLOBAL MARKET FOR

HEALTHCARE SERVICE.Nearly 7 million patients travel abroad for healthcare every year. The

global medical tourism market is an industry valued at US$ 20 billion a

year.(9) In 2011 alone, medical tourism contributed to 9% of the world‟s

gross domestic product (GDP) more than that US $ 6 trillion.(10) The global

industry also accounted for an estimated 255 million jobs in 2011.(11)

Global Medical Tourism Industry

Market Size

($20 billion)

World GDP (9%)

Jobs Worldwide

THE GLOBAL MEDICAL TOURISM

INDUSTRYTHE LEADERS

There are several destinations in the industry across four continents that are vying for the medical tourism business. India leads the market among the Asian destinations. It is one of the pioneer countries in the industry and has remained a popular destination overall

Although there are several destinations for medical tourism around the globe, six popular hubs have been identified namely India, Singapore and Thailand. India has maintained a competitive advantage by offering low cost surgical services.

The three minor hubs that have been identified include Costa Rica, Hungary and South Africa. Hungary competes by providing a rich cultural experience in addition to dental or cosmetic treatments.

Competitively, South Africa provides world-class healthcare, expertise and professionalism at reduced costs, primarily for cosmetic procedures and dental surgeries.

MEDICAL TOURISM DESTINATIONS

IN AFRICA

Although South Africa has been identified as an important hub for

medical tourism in Africa, other destinations on the continent have

also become prime destinations for medical tourism.

Egypt has had a robust tourism industry for several years and is

becoming a popular destination for medical tourists from Europe and

the Middle East, medical tourism allows visitors to visit many of

Egypt‟s historic sites.

MEDICAL TOURISM FROM AFRICA

The number of medical tourists from Africa is increasing. This increase has been spurred by the growth of African economies, the growing spending power of Africans, and the growth of the middle-class on the continent. In the past, it was common to see Africans travel to Europe or the US to receive medical treatment. Now, these travelers are increasingly visiting other Global South destinations such as Egypt, India, Ghana and South Africa.

Nigerian medical tourists travel to Dubai, Germany, India, UK and the US. Currently, the UK issues about 40,000 medical visas to Nigerians yearly. This is comparable to the 35,000 medical visas issued by India for Nigerians. Asia has now become the top destination for African medical tourists, most of who visit India.(30) Nearly 50,000 Kenyans travel to India annually to receive healthcare.(31)

African medical tourists are coveted for the business they bring to the host countries.(32)

They tend to pay higher out-of-pocket rates than local patients.(33)

MEDICAL TOURISM FROM AFRICA

They also spend money on lodging, dining, and entertainment for themselves and their families. Nigeria estimates that it generates about 5,000 medical tourists per month.(34) According to the Nigerian MTA, in 2012 India generated over N 40.94 billion (US$ 260 million) from Nigeria‟s medical tourists alone.(35)

Each medical tourist spends between US$ 20,000 and US$ 40,000 per trip. The economic implications of the tourism sector are too large to be ignored.

Although this is a positive development for India and other nations that host these tourists, it drains the economies of the home nations. Nigeria‟s medical tourists contribute to a loss of over N 78 billion (US$ 500 million) to Nigeria‟s economy.(36)

In light of this type of capital flight, some African governments are hoping to capture some of the business. They are trying to retain local patients and attract new medical tourists.

ANALYSIS

MEDICAL TRAVEL FACILITATOR: THEIR ROLE IN DELIVERY OF SAFE OVERSEAS

HEALTHCARE

Although India offers exceptional healthcare at

astonishingly reasonable prices, it can be helpful to

have a health travel agent navigate the process with

you.

To educate potential patients about the

various medical facilities and physician

they are promoting

To manage the flow of information and

coordination of services between patients and

providers

VALUES OFFERED BY A FACILITATOR

Making the right choice

Cost Reduction

Close Observation

Breaking Down Language barrier

Travel Logistics

Feedbacks Testimonial

PART B

STRATEGIES FOR REINVENTING YOUR

BUSINESS

Business Development

Marketing & Advert

Identity Management

Internet Solution

Public Relation

BUSINESS DEVELOPMENT

Customer Service Program

Business Management & Planning

Market Research

Efficiency Flow Management

CASE STUDY 1

Leveraging on Relationship

The survival Story of Okeoghene

• http://www.youtube.com/watch?v=VrXArl0f3rM

MARKETING & ADVERT

Radio/ TV/ Print Advert

Product Branding

Market Research

Script writing & Story Boarding

Telemarketing

Online Video

Event marketing

Tradeshow Marketing

Direct Mail Program

Email Marketing & Social Media

CASE STUDY 2

IDENTITY MANAGEMENT

Identity & Brand Strategy

Customer Loyalty Program

Logo Creation

Brochure Development

Articles & Presentation

Newsletter

CASE STUDY 3

INTERNET SOLUTION

Web Design & Development

Social Media marketing

Email marketing

Mobile Website

SEO & SEM

CASE STUDY 4

PUBLIC RELATION

Press Release

Media Kit production

Pitches to Media

Public Affairs Mgt

Crisis Communication

CASE STUDY 5

RISING CHALLENGES IN MEDICAL

TOURISM

“circumvention tourism” or traveling to acquire services that are illegal in the medical tourist‟s home country, such as abortion, female genital cutting, and physician-assisted suicide;

the role of medical tourism facilitators;

medical tourism and the cross border spread of disease;

the global market for organs

potential benefits and risks for domestic health systems that invest significant resources to attract foreign patients.

REFERENCES

(9) Ajobe, A.T., et al., „Nigeria: How Nigerians spend billions on medical tourism‟, The Daily Trust, 5 January 2013.

(10) Grout, P., „Medical tourism: A global stampede for affordable care‟, CNN, 22 March 2013, http://travel.cnn.com.

(11) Ibid.

(12) Crush, J.R., Chikanda, A. and Maswika, B., 2012. Patients without borders: Medical tourism and medical migration in Southern Africa. Southern African Research Center: Cape Town.

(13) Marshall, S., „South Africa leads the way in medical tourism‟, Ethical Traveler, 1 April 2012, http://www.ethicaltraveler.org.(30) Kalagho, K., „Medical tourism up‟, East African Business Week, 3 September 2012,http://allafrica.com.(31) „50,000 medical tourists expected to visit India in 2011‟, AALA Times, 26 March 2011,http://www.aalatimes.com.(32) Kalagho, K., „Medical tourism up‟, East African Business Week, 3 September 2012,http://allafrica.com.(33) Ntangungira, G., „Rwanda targets medical tourism‟, The Independent, 22 April 2013,http://www.independent.co.ug.(34) Pollard, K., „Medical tourism destinations. Today, Nigeria..., next stop... Mars?‟, IMTJ Blog, 2013,http://www.imtj.com.(35) Ibid.(36) Ajobe, A.T., et al., „Nigeria: How Nigerians spend billions on medical tourism‟, The Daily Trust, 5 January 2013.(37) Ntangungira, G., „Rwanda targets medical tourism‟, The Independent, 22 April 2013,http://www.independent.co.ug.(38) Ajobe, A.T., et al., „Nigeria: How Nigerians spend billions on medical tourism‟, The Daily Trust, 5 January 2013.(39) „Nigeria partners with MTA to check medical services‟, Business Day Nigeria, 1 July 2013,http://businessdaynigeria.com.(40) Ajobe, A.T., et al., „Nigeria: How Nigerians spend billions on medical tourism‟, The Daily Trust, 5 January 2013.(41) Greenwod, L., „Ghana targets health tourism boost‟, BBC News, 30 October 2009,http://news.bbc.co.uk

Thank You

CORRESPONDENCE TO:

Adeniyi Akofiranmi

HealthCare - West Africa

Philips Innovations Nigeria Ltd

Suite 709, 7th Floor, Mulliner Towers

39, Alfred Rewane

Ikoyi, Lagos, Nigeria

Tel: +234 014489255

Mob: +2348024567864

Web: www.philips.com