guide to health tourism exporting
DESCRIPTION
Maria Todd, Executive Director shares tips for providers and government authorities seeking to export health services for economic development.TRANSCRIPT
Medical TourismGUIDE TO EXPORTING HEALTH SERVICES
Maria K Todd, MHA PhDExecutive Director
The Healthcare Business Institutean international nonprofit NGO
About Your Presenter Master of Health Administration
Doctor of Health Administration
Former Surgical Nurse | Former Travel Agent - AAA Worldwide Travel Agency
CEO of the largest health tourism company in the world
Author of 4 Books on Medical Tourism
Health tourism exporters sell billions of dollars of goods
and services to international patients every year– and
you can be one of them. Exporting health tourism can be an optimum way for you to grow your business.
ARE YOU READY TO EXPORT YOUR
HEALTH TOURISM SERVICES?
© 2013. Healthcare Business Institute - EXPORTING HEALTH SERVICES: Medical Tourism All International Rights Reserved.
Organizational Commitment
Is your organization’s executive leadership committed to exporting
and willing and able to dedicate properly trained staff and
resources?
Is your organization willing and able to travel internationally, such as
attending trade shows and meeting and hosting fam tours in-
country with potential foreign buyers/distributors and media
representatives?
Does your organization have a clear process in place to respond to
international inquiries from all sources (web, email, phone calls,
etc.)?
© 2013. Healthcare Business Institute - EXPORTING HEALTH SERVICES: Medical Tourism All International Rights Reserved.
Planning & Strategy
Does your organization have or is your organization preparing an
international marketing plan with defined goals, strategies and
target markets?
Has your organization updated your website to emphasize your
interest/ability to provide transparent services pricing and provide services with cultural and linguistic readiness for foreign patients?
Does your organization have adequate knowledge on how to
protect your intellectual property internationally?
© 2013. Healthcare Business Institute - EXPORTING HEALTH SERVICES: Medical Tourism All International Rights Reserved.
Export Process
Does your organization have adequate knowledge in arranging health travel logistics and transportation for patients from overseas; such as secure medical records transfer, medical records translation, telehealth consultations with attending physicians, and travel planning?
Does your organization have adequate knowledge about contracting with third-party insurers, foreign employers, and consumers and have payment options such as letters of credit, payment guarantee letters, facilitator contracts, and country representative agreements?
Does your organization have adequate knowledge of the foreign legal and regulatory requirements specific to your services/products?
© 2013. Healthcare Business Institute - EXPORTING HEALTH SERVICES: Medical Tourism All International Rights Reserved.
Collaboration and SupportBUILDING A SUCCESSFUL MEDICAL TOURISM PROGRAM
© 2013. Healthcare Business Institute - EXPORTING HEALTH SERVICES: Medical Tourism All International Rights Reserved.
Framework ContractsThe Healthcare Business Institute – a nonprofit NGO, is active in international development, medical tourism capacity development and institutional readiness assistance.
Whether your hospital, clinic or hotel is new to health tourism or in need of a refresher on the latest ideas and techniques, we will source and manage your project to bring medical tourism experts that provide the nuts-and-bolts information your organization needs to meet the challenges of the health travel and tourism world economy.
Short-term experts and technical advisers will help you meet international customer, foreign investors, and develop meaningful relationships to boost referrals and exports.
We work with government agencies to find ways to leverage government resources and programs to more effectively market and drive inbound referrals from overseas.
© 2013. Healthcare Business Institute - EXPORTING HEALTH SERVICES: Medical Tourism All International Rights Reserved.
International Trade EventsThe Healthcare Business Institute organizes international trade events – which can include:
Webinars and seminars on the fundamentals of medical tourism exportation
Counseling and other support at U.S. and international trade shows;
Recruitment of foreign buyer delegations to trade shows
Fam tour arrangements for foreign buyers to visit your facility; and
Trade missions of delegates to foreign markets for one-on-one meetings with
potential customers and partners.
© 2013. Healthcare Business Institute - EXPORTING HEALTH SERVICES: Medical Tourism All International Rights Reserved.
Planning & StrategyThe Healthcare Business Institute has developed the Medical Tourism Export Business Planner for health tourism suppliers to answer critical questions for
hospitals and hotels entering export markets.
The Planner provides a discussion and series of worksheets to get your
organization thinking about marketing health services to export markets
Conducting market research about buyers in target markets
Tips on marketing your medical tourism product or service
Best practice tips on entering foreign markets
Identifying customers within your chosen markets
About international quality and safety accreditation and certifications
© 2013. Healthcare Business Institute - EXPORTING HEALTH SERVICES: Medical Tourism All International Rights Reserved.
Market ResearchThe Healthcare Business Institute helps international healthcare facilities identify products and services with health tourism export potential through specialisedmarket research and analysis.
Assessing strengths and weaknesses of services you believe have health tourism export potential
Select the most exportable health tourism services to be offered
Evaluate the services to be offered – choose safest, simplest services to start
Matching health tourism services with global trends and needs
Identifying the largest, most profitable, fastest-growing foreign markets for those services
Determining the most penetrable markets for your health tourism exports
© 2013. Healthcare Business Institute - EXPORTING HEALTH SERVICES: Medical Tourism All International Rights Reserved.
FACTAccording to HBI market research, new-to-medical tourism
organizations often tend to choose too many markets and too many
procedures at first. For most health tourism facilities and programs,
choosing one to three foreign markets initially is recommended.
© 2013. Healthcare Business Institute - EXPORTING HEALTH SERVICES: Medical Tourism All International Rights Reserved.
Services & Markets to Pursue
Markets to Pursue
Most Penetrable Markets
Match Services to Global Trends /Needs
Services with Export Potential
Industry Analysis
Business Analysis
Sustainable Community Benefits / Trade-offs
© 2013. Healthcare Business Institute - EXPORTING HEALTH SERVICES: Medical Tourism All International Rights Reserved.
Health Tourism Goal Setting
Summarize your short- and long-term goals for health tourism exports
For each market, determine:
Medical Tourism Product Standards
Accreditation and Certification Requirements Expected by the Market
Product Modifications / Support Required
Establish two-year goals for your health tourism export services
Establish five-year goals for your health tourism export services
Define key performance indicators
Develop an action plan and timelines coupled with resources and budgets
© 2013. Healthcare Business Institute - EXPORTING HEALTH SERVICES: Medical Tourism All International Rights Reserved.
Identify Representatives and FacilitatorsIf you choose to use agencies or medical tourism facilitators, you will need to sign a
formal contractual agreement. The agreement will define your relationships:
Specify performance objectives and brand standards to be upheld
Describe territories and whether the agent or facilitator will have exclusive sales and
representation rights
Set the length of the term for which the agreement is applicable and agree upon specified
minimum sales volumes to retain sales rights
Outline protection of intellectual property
Describe other obligations imposed, violations of which would justify termination of the
agreement.
List specific intellectual property rights granted to the agencies or facilitator
Define financial terms and payment arrangements
© 2013. Healthcare Business Institute - EXPORTING HEALTH SERVICES: Medical Tourism All International Rights Reserved.
Agency and MTF Agreements
When negotiating and drafting contractual
agreements, consult an attorney with
experience in international trade and laws of
the specified country
© 2013. Healthcare Business Institute - EXPORTING HEALTH SERVICES: Medical Tourism All International Rights Reserved.
Health Tourism Export ProgramsPROGRAMMING COST ACCOUNTING
© 2013. Healthcare Business Institute - EXPORTING HEALTH SERVICES: Medical Tourism All International Rights Reserved.
Health Tourism Service Line Costs
This should be calculated separately from your local service costs
Implants and Consumables
Direct Labor (Doctors, Nursing and Admin)
Service Modifications for International Patients
Overheads Costs
Selling Expenses
General Expenses (including debt service)
Administrative Expenses
Export Marketing Costs
Profit Margins
Procedure Pricing
© 2013. Healthcare Business Institute - EXPORTING HEALTH SERVICES: Medical Tourism All International Rights Reserved.
Health Tourism Service Line Costs
Additional Costs
Foreign Sales Commissions
International patient department costs
Destination management costs /pass thru costs
Professional liability premium costs
Translation costs
Trade show shipping and customs fees & insurances
Trade show staffing costs
Cost of credit or capital
Bank transaction fees
Total Additional Export Costs
© 2013. Healthcare Business Institute - EXPORTING HEALTH SERVICES: Medical Tourism All International Rights Reserved.
Health Tourism International Marketing Costs
Expense
Accounting Fees
Legal Fees
Promotional Material
Travel
Communication (international and domestic)
Advertising allowances
Promotional expenses
Shipping and customs fees for trade show materials
Stand expenses
Total Marketing Fees and Costs
© 2013. Healthcare Business Institute - EXPORTING HEALTH SERVICES: Medical Tourism All International Rights Reserved.
Projected Income – Per Market Gross Profit
Sales Volumes
Cost of Goods Sold
Gross Margin
International Operating Expense
International Patient Department Operations
International Patient Department Training & Development
Staff Nurse Training & Development (Medical English)
All previously identified Service Line and Marketing Costs
International Division’s Domestic Expense Allocation
© 2013. Healthcare Business Institute - EXPORTING HEALTH SERVICES: Medical Tourism All International Rights Reserved.
Track Costing and Revenue per Market.
Don’t smear revenue performance!
Setting Your Prices Direct supply and labor costs
Prorated overheads
Operating Expenses
All international health tourism export associated costs
Allowance: (for unforeseen production costs, operating expenses, unavoidable risks
and simple mistakes that are common in any new undertaking)
Profit / Markup
• Commissions – if any
• Consulting fees
• Communications
• Foreign advertising
• Legal expenses
• Interest payments
• Market research
• Product modification
• Promotional materials
• Provision for bad debt
• Translation costs
• Transportation costs
• Travel expenses
• Other costs
© 2013. Healthcare Business Institute - EXPORTING HEALTH SERVICES: Medical Tourism All International Rights Reserved.
Take volume discounts from the
profit, not the direct costs!
UTILIZING TECHNOLOGYFOR SUCCESSFUL HEALTH TOURISM EXPORTING
© 2013. Healthcare Business Institute - EXPORTING HEALTH SERVICES: Medical Tourism All International Rights Reserved.
Key Elements of E-Commerce
Online presence for your company (a website)
Providing information in your target market’s native language(s)
Key words embedded in your website, so that your company is
found by online search engines
Payment processing
There is one caution for start-up health tourism exporters who plan online sales and the use of
credit cards for e-commerce. Market research indicates that the unauthorized use of credit cards
for international payments is the fastest-growing fraud in international commerce.
If you plan to have a representative in a certain country that is selling on your behalf and
accepting credit cards on your behalf, they must be in compliance with various internet safety
regulations. This includes PCI and HI-TECH in the USA and other similar regulations in the EU.
© 2013. Healthcare Business Institute - EXPORTING HEALTH SERVICES: Medical Tourism All International Rights Reserved.
Equipping Your International Patient
Department for Success Conference Calling
Contact Management capable of 14-digit
dialing
Web and Video Calling
Handy/Mobile Phones
Voice mail with outgoing messages in
several languages
Secure email and fax
Website – optimized for foreign market SEO
Computers with high-speed internet access
Antivirus utilities
Firewalls
Accounting / healthcare revenue cycle
package that can accommodate currency
conversions and coding translations
© 2013. Healthcare Business Institute - EXPORTING HEALTH SERVICES: Medical Tourism All International Rights Reserved.
TIMETABLE STEPSFOR SUCCESSFUL HEALTH TOURISM EXPORTING
© 2013. Healthcare Business Institute - EXPORTING HEALTH SERVICES: Medical Tourism All International Rights Reserved.
Timetable Steps
Identify Key Activities
Assign responsibility for each activity
Determine scheduled start date
Set key performance indicators and performance benchmarks
Determine “go live” date
© 2013. Healthcare Business Institute - EXPORTING HEALTH SERVICES: Medical Tourism All International Rights Reserved.
Marketing Plan Summary
For bankers and lenders
For management team leaders and key staff
Potential investors
For international partners – tailored to each specific or potential audience, as needed
© 2013. Healthcare Business Institute - EXPORTING HEALTH SERVICES: Medical Tourism All International Rights Reserved.
Conclusion
The Healthcare Business Institute is a nonprofit international NGO that specializes in framework contract management and brings the know-how of more than 100 seasoned international health tourism short-term experts and technical advisors ready to help you achieve success
Market Research
Product modification for the international market
International quality and safety accreditation preparation
Strategic Planning & Implementation
Staff Training and Development
Technical assistance (marketing and e-commerce)
Health tourism exporters sell billions of dollars of goods and services to international patients every year– and you can be one of them. Exporting health tourism can be an optimum way for you to grow your business.
© 2013. Healthcare Business Institute - EXPORTING HEALTH SERVICES: Medical Tourism All International Rights Reserved.
Contact Information
Dr. Maria Todd
Executive Director
Healthcare Business Institute, Inc.at the Posner Center for International Development
1031 33rd Street
Denver, Colorado 80202
+1.800.209.7263
The Posner Center for International Development houses 30+ organizations, 120 employees, hundreds of interns and volunteers, a farmers’ market, a learning laboratory, a lecture hall, exhibition and meeting space, and more. This unique community serves as a collaborative epicenter of international development.