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Medical Tourism in the Philippines: Market Profile, Benchmarking Exercise, and S.W.O.T

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Medical Tourism in the Philippines: Market Profile, Benchmarking Exercise, and S.W.O.T A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Picazo, Oscar F. Working Paper Medical Tourism in the Philippines: Market Profile, Benchmarking Exercise, and S.W.O.T. Analysis PIDS Discussion Paper Series, No. 2013-45 Provided in Cooperation with: Philippine Institute for Development Studies (PIDS), Philippines Suggested Citation: Picazo, Oscar F. (2013) : Medical Tourism in the Philippines: Market Profile, Benchmarking Exercise, and S.W.O.T. Analysis, PIDS Discussion Paper Series, No. 2013-45, Philippine Institute for Development Studies (PIDS), Makati City This Version is available at: http://hdl.handle.net/10419/126939 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu Philippine Institute for Development Studies Surian sa mga Pag-aaral Pangkaunlaran ng Pilipinas Medical Tourism in the Philippines: Market Profile, Benchmarking Exercise, and S.W.O.T. Analysis Oscar F. Picazo DISCUSSION PAPER SERIES NO. 2013-45 The PIDS Discussion Paper Series constitutes studies that are preliminary and subject to further revisions. They are be- ing circulated in a limited number of cop- ies only for purposes of soliciting com- ments and suggestions for further refine- ments. The studies under the Series are unedited and unreviewed. The views and opinions expressed are those of the author(s) and do not neces- sarily reflect those of the Institute. Not for quotation without permission from the author(s) and the Institute. September 2013 For comments, suggestions or further inquiries please contact: The Research Information Staff, Philippine Institute for Development Studies 5th Floor, NEDA sa Makati Building, 106 Amorsolo Street, Legaspi Village, Makati City, Philippines Tel Nos: (63-2) 8942584 and 8935705; Fax No: (63-2) 8939589; E-mail: [email protected] Or visit our website at http://www.pids.gov.ph PHILIPPINE INSTITUTE FOR DEVELOPMENT STUDIES Medical Tourism in the Philippines Market Profile, Benchmarking Exercise, and S.W.O.T. Analysis Oscar F. Picazo 9/25/2013 This discussion paper was written with the assistance of Danica Aisa Ortiz, Melanie Aldeon, and Nina Ashley dela Cruz. It was prepared for the Department of Trade and Industry and will also be shared with the Department of Tourism and the Department of Health. The views expressed here are those of the author and not those of the board, officials, and staff of PIDS, DOT, DTI, or DOH. This is a policy research paper the contents of which are not meant to be used for individual medical or care-seeking behavior but only as an industry background. Abstract Medical Tourism in the Philippines: Market Profile, Benchmarking Exercise, and S.W.O.T. Analysis This report reviews the medical tourism industry in the Philippines. It discusses the global market for medical tourism, analyzes the demand and supply aspects of the local industry, and identifies its drivers of growth. It performs an industry benchmarking exercise by looking at benchmarks associated with strategy setting, organization and management, service quality, care, travel and accommodation, and financing. It also conducts an analysis of the strengths, weaknesses, opportunities and threats of the industry. Keywords: Medical Tourism, Industry Benchmarks, Market Profile, Demand for Medical Tourists, Supply of Services and Facilities for Medical Tourism Abbreviations and Acronyms AC – Accreditation Canada NSO – National Statistics Office BOI – Board of Investments OECD – Organization for Economic Cooperation and Development (shorthand for industrial CMTR – Center for Medical Tourism Research countries) COE – Center of Excellence OFW – Overseas Filipino Worker DOH – Department of Health PAO – Philippine Academy of Ophthalmology DOT – Department of Tourism PAPRAS – Philippine Association of Plastic DTI – Department of Trade and Industry Reconstructive and Aesthetic Surgeons EO – Executive Order PCAHO – Philippine Council for the EU – European Union Accreditation of Health Organizations FDA – Food and Drug Administration PEZA – Philippine Economic Processing Zone Authority FTZ – Free Trade Zone PhilAsHOme – Philippine Association of Health H2H – Hotel to Hospital Organizations in Medical Tourism HEAL – Health and Wellness Alliance of the PHIC or PhilHealth – Philippine Health Insurance Philippines Corporation HMO – Health Maintenance Organization PHC – Philippine Heart Center IMTJ – International Medical Travel Journal PHP – Philippine Pesos INICC – International Nosocomial Infection PMA – Philippine Medical Association Control Consortium PMTI – Philippine Medical Tourism, Inc. IPP – Investment Priorities Plan PMTP – Philippine Medical Tourism Program ISO – International Standards Organization PPO – Preferred Provider Organization ISQua – International Society of Quality in Healthcare PRA – Philippine Retirement Authority JCI – Joint Commission International PSIC – Philippine Statistical Industrial Classification Lasik – Laser-Assisted in Situ Keratiomilieusis RA – Republic Act LGU – Local Government Unit RP – Republic of the Philippines LSVVE – Long-Stay Visitor Visa Extension SAPI – Spa Association of the Philippines, Inc. NABH – National Accreditation Board for Health SWOT – Strengths, Weaknesses, Opportunities, NAIA – Ninoy Aquino International Airport and Threats NCDs – Non-communicable Diseases TESDA – Technical Education and Skills NG – National Government Development Authority NKTI – National Kidney and Transplant Institute TMC – The Medical City NSCB – National Statistical Coordination Board UAE – United Arab Emirates i UK – United Kingdom WHO – World Health Organization US – United States WTO – World Trade Organization US$ - United States Dollars ii Table of Contents Abbreviations and Acronyms ......................................................................................................................... i Table of Contents ......................................................................................................................................... iii List of Tables ................................................................................................................................................. v List of Figures ............................................................................................................................................... vi Executive Summary ..................................................................................................................................... vii A. Market Demand and Drivers of Growth ............................................................................................ vii Top 15 Destinations of Medical Tourists, 2010 ................................................................................. viii B. The Domestic Industry ......................................................................................................................... ix Hospitals Under the Philippine Medical Tourism Program, 2013 ........................................................ ix Comparison of Price Range for Sample Procedures in the Philippines and in the U.S. and Thailand, in US$, Early 2010s ................................................................................................................................... ix Revenue and Cost Trends of Selected Health and Wellness Activities in the Philippines, PHP Billion, 1999 to 2009 ......................................................................................................................................... x C. Benchmarking Analysis ......................................................................................................................... x Benchmarking of the Philippine Medical Tourism Industry, 2013 ....................................................... xi D. S.W.O.T. Analysis ...............................................................................................................................xiii E. Next Steps ..........................................................................................................................................xiii S.W.O.T. Analysis of the Philippine Medical Tourism Industry, 2013 ................................................. xiv F. Concluding Notes ............................................................................................................................... xiv Chapter I. Background .................................................................................................................................
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