When I heard that a friend of mine is quitting her full time job to join the medical tourism bandwagon, I thought it is about time to clear the air on some of the rosy projections out there. Here is a recent report that projects 30% growth in medical tourism revenue for Fortis (I do not have data to question this..)
http://economictimes.indiatimes.com/news/news-by-industry/healthcare/biotech/healthcare/Fortis-Healthcare-eyes-30-pc-jump-in-medical-tourist-arrivals/articleshow/6098907.cms
However the devil is in the details. Though the 30% number looks good in percentage terms, the absolute number of patients in 2009(4000 patients), is what one may need to look at more closely.. The revenue figures for Fortis Hospitals (formerly Wockhardt Hospitals ) for 2009 was Rs 93 crores ( about $ 25 million) making the revenue from medical tourism segment for Fortis Hospitals to 9 crores (about $ 2.5 million).
http://www.business-standard.com/india/news/fortis-net-profit-zooms-five-fold/396401/
If we are seeing $ 2.5 million for Fortis Hospitals, the total including other major hospital groups could add up to a reasonable of $ 15 million for 2009. A 30% growth would put the 2010 revenue at about $ 20 million.
So I was wondering if it is high time we revised Mc Kinsey’s medical tourism revenue estimates for India downward from $ 2 BILLION in 2012. Would $ 20 -30 million million be more realistic?
For those who are chasing the hype cycle it makes sense to take a realistic look at the numbers based on the facts available. Medical tourism in India will continue to grow, however the pace of growth is debatable.
Subscribe to:
Posts (Atom)
