Medical Tourism: Study Case of Ijn

checkup tourism Sustainability through the Export Market Orientation Behaviours The issue Study of Institut Jantung Negara (IJN) Ili-Salsabila Abd-Razak1 and Asmat Nizam Abdul Talib Universiti Utara Malaysia, Kedah, MALAYSIA The inclusion of touristry sector as one of the 12 recognized national key stinting argonas (NKEA) for the 10th Malaysia Plan correspond the sectors opportunity in not only parkway the nations stinting system, but overly transforming the rural area into a broad(prenominal)-in draw economy by 2020. With approximately 10 course of educations left, many concerned groups atomic make sense 18 keen to know how this will be achieved.This paper aims at exposing the prospects of medical checkup exam checkup examination examination checkup checkup examination examination touristry as an essential subsector of touristry which would offer a occur of proven benefits, and hence contribute to accomplishing the judicature aspiration of transforming th e nations economy via the said sector. In discussing the subject, the caseful study method is active involving Institut Jantung Negara (IJN) as an emerging medical tourism provider in the country. Findings of the case study ar presented herein. Key words medical tourism, economy, Institut Jantung NegaraIntroduction The promising prospect of tourism as an economic stimulator has en up to(p)d it to be included in the identify of 12 National Key Economic Areas (NKEA), which has been specific every(prenominal)y drafted to transform the Malayan economy into high-income economy by year 2020. While there are tremendous takingss of tourism categories, ranging from environment, cultural, sports, and entertainment, to name a few, this paper narrow d hold to highlight on the prospects of medical tourism as a probative tourism-related economic contributor in this country. Connell (2006) defined medical tourism as wellness-related tourism involving specific medical intervention. Among t he most popular medical tourism products are orthopaedic and cardiac surgery, which are very popular among Asian medical tourism providers, as well as executive health evaluations, cosmetic surgery, joint replacement, and similar complex medical, surgical and dental procedures (Horowitz and Rosensweig, 2007).Therefore this is a distinguished exertion than that of the wider health tourism constancy which involves tourists travelling to lookup for spas, yoga and meditation, or any different forms of health tourism (Connell, 2006 Garcia Altes, 2005). 1 email ili. emailprotected com 169 In a comparatively detailed account of medical tourism victimisation which began in 1800s, Schroth and Khawaja (2007) proposed that the current phenomenon is different due to the unique conspiracy of orbicular demand and supply indoors the transnational medical market.As notice in the region, this proposition is regarded as well-founded. The present development of medical tourism in the intern ational market is very unique, manifested by the escalating statistics of players, perseverings and taxations bring backd around the populace of late. How Malaysia is positioned within this backdrop, and how it would affect the development of this fast-flying emerging economy, are among the revolve ab issue of discussion of this paper. The Statistical Development of aesculapian touristry medical tourism has been a very significant perseverance over the years.By judging from its health travel umbrella, the sector is evaluate to generate some handsome revenue of RM240 billion (roughly USD73 billion) in 2010, with ASEAN contributing RM9. 6 billion (roughly USD3 billion) (PEMANDU, 2010). Specifically cogitate on medical tourism patience, the anticipated revenue to be generated in Asia is RM14. 2 billion by 2012 (roughly USD4. 3 billion), with Malaysia is expected to bring in RM2. 1 billion (roughly USD64 million) from that amount (Ang, 2009).As a comparison, India, other(a ) top Asian medical tourism destination, expects to gain USD2 billion by the same year (Connell, 2006 Horowitz and Rosensweig, 2007). These statistics surely are translated by a growing number of medical tourists around the globe. The movement of medical tourists is another significant indicator of this trend. At the worldwide stage, approximately 350 000 medical tourists moved from essential nations to less substantial countries for treatment in 2003, term a year later 1. 18 million patients travelled to India alone and another 1. million to Thailand for the same drive (Horowitz and Rosensweig, 2007). Glancing at the local development, the Association of hidden Hospitals of Malaysia (APHM) has been projecting for a constant 30% growth of takings from foreign patients until 2010. This is apparent from the steady ontogeny of foreign patients to Malaysia which recorded a total of 39 114 patients in 1998 and 374 063 patients decade years later (APHM Liow, 2009). In terms of re venue, RM14. 1 million was document in 1998 before jumped to RM299. million in 2008 (APHM Liow, 2009), and is expected to contribute to another RM540 million in 2010 (Leonard, 2009). The revenue per patient has almost tripled from RM360 in 1998 to RM800 in 2008 (Choy, 2010). In the latest development, medical tourism is expected to generate RM4294. 4 million of Gross National Income, together with 5295 jobs in 2020 (PEMANDU, 2010). This occurrence has promptly attracted a number of giant MNCs with diversified structure such as General Electric (GE) to invest further in the industry (Panjanadan, 2010). The vicissitude of Medical TourismThe presented statistics did not appear by chance. The numbers occurred out of arguable factors. The development of medical tourism industry is indeed different (Horowitz and Rosensweig, 2007). As mentioned earlier, Schroth and Khawaja attributed the uniqueness of the industrys current development to the forces of markets demand and supply, which is in resonance with Horowitz and Rosensweig (2007) who ascribed it to the movement of patients from industrialized nations to less developed countries. Connell (2006) argued that medical tourism is a niche which 170 xperienced rapid growth and has become an industry. The said paper also enlisted several factors promoting the development of medical tourism, such as the let out costs factor, the long waiting list, the relatively affordable international air travel and favourable exchange rate, rundown the aging of the baby boomers generation. These factors are also often cited in a number of studies regarding medical tourism such as Hansen (2008), Herrich (2007), Horowitz and Rosensweig (2007), Garcia Altes (2005), Marlowe and Sullivan (2007), and Schroth and Khawaja (2007), to name a few.A take a severalize from these popular factors, other notable factors motivating the development of the industry spotty in the literature extent are the use of internet and mobility of technology , the unavailability of certain procedures in the local market, and the reduced trade barriers encouraging the mobility of workforce. Hansen (2008) argued that the rotary motion in medical tourism today is consumer-driven. This is in line with Horowitz and Rosensweig (2007) who argued that the industry is market driven with complex occasion of multitude medical, economic, social and policy-making factors.While the pull ahead of the industry seems to be very promising, the general over soak up of Malaysias involvement at the international level is not very charming. Even though medical tourism watchd an astounding per annum growth of 22% from 2004 to 2009, the planetary share is still considered as small with RM350 million in 2010 (PEMANDU, 2010). make headway much than, PEMANDU also reported that magical spell the worldwide health care travel is a multi-million horse industry, Malaysia is yet to get a sizeable share.The said industry is expected to generate USD75 billion of revenue in 2010 at the global level, date Malaysia is expected to make about USD0. 1 billion. The statistics provide a legal brief sight on the development in the country weighted against the global development. Malaysia should therefore be proactive enough to catch up with the global progress to stay war-ridden in the industry. To enable this, the players and responsible parties mustiness quickly recognize latent coldnesss that can hamper the development and shell out the issues well.The Required Expertise and the Potential Economic Opportunities Based on precedent arguments, medical tourism offers bountiful opportunities and chances. In regularize to re main competitive at the global stage, marketing strategies should be revisald against the present circumstances. merchandise the medical expertise and offerings should be distinctively conducted. The primary concern of taxing an elegant marketing strategy is the effectiveness of the strategies implemented.StuartKre gor (2005) argued that defining marketing excellence for medical-related industry is different with that of the commercial-based industry. As customer is the centre of marketing smooth in the industry, the paper suggested that the effectiveness of marketing strategies should thus be done by measuring the customers satisfaction over the service provided. Therefore, all other marketing excellence measured by considering the profit, return on investment or sales as in any other commercial industries should be changed to be more customer-oriented rather than organizationaloriented. Building he strategies can be done by developing, communicating and delivering the right turned on(p) benefits to the targeted customers (Stuart-Kregor, 2005, pp. 117). The right emotional benefit here is viewed as brand by Stuart-Kregor (2005). This paper is in agreement with the argument, which is to develop the marketing strategies by direction on the emotional benefits (brands), and assess the effectiv eness of the strategies by measuring the satisfactions of the customer. Further discussion on this is available in the next section. 171 The science of excellent marketing strategies would be wasted without a good delivery system.The bow of local expertise, technologies and facilities must be attended to in order to assess the quality of the service offered against the global level. This is where the industry should strive to be as similar as other excellent providers. The commodification of medical tourism (Chee, 2007) is an unadorned of this occurrence. Dunn (2007) argued that patients are making choices on medical tourism destinations based on how similar is the service delivered, peculiarly concerning patients from industrialized nations, and the service is expected to come with much lower price.Consequently, it is observed that patients are not looking for low cost products at the expense of the quality in the industry. Successful players enlighten this and capitalize on th e factors well. This explains the rapid movement of workforce and technologies across the four-spot corners of the world. India as an example has been winnerful in luring its medical doctors who have been ingenious and worked abroad to return with their inter across the nation recognized expertise and work in the country.Thailand and United Arab Emirates have been fortunate in rearranging for international collaboration in the industry (Schroth and Khawaja, 2007). Through these strategies, the countries have been able to keep their expertise, technologies and facilities up with the global standard. Proposed Strategies of Reviving and Sustaining Medical Tourism The Case of IJN With the national governments involvement late (Chee, 2007 noner Hazilah, Roslan Johari and Kadar, 2010 PEMANDU, 2010), the industry has been attracting the evoke of many concerned parties.Since the medical tourism is fast becoming a commodity (Chee, 2007), its marketing strategies should be focusing more on brands and less on products to be distinctive than other providers. As in Malaysia, the country is capable of offering similar products with the rest of other players in the world. While Malaysia has been focusing on cost all this while, it is suggested then for the country to deliver a unique brand which is capable of attracting the interest of potential medical tourists, without desecrating the cost advantage.In order to do so, it is particularly all important(predicate) for the players to implement the trade market predilection behaviours within their organization, which are generating, disseminating and responding to the export market intelligence (Cadogan, Diamantopoulos and de Mortanges, 1999). Consequently, Malaysia is expected to be able to woo medical tourism patients even more. Hazilah et al. (2010) reported that a medical tourist spends reiterate than a regular tourist while they are in the country. This high buying power therefore is capable of generating more eco nomic opportunities.The medical tourist needs are also offering a big bucks of opportunities for Malayan. Apart from medical anxiety, they need to have accommodation for their accompanying family members. raw(a) jobs have been underway to wear out serve the medical tourists, such as the healthcare broker. A healthcare broker assists the patient to choose a medical demonstrate and arrange for the patients needs while in here, including visa, accommodation and holiday arrangement. Thanks to the internet, these can be consistent prior to the patients arrival in the country.To describe more of these strategies and opportunities, this paper choose to present the IJN as a case study merit the discussion. The National Heart Institute or Institut Jantung Negara (IJN) has been established in 1992. The privatization of the institute was done on many premises, especially concerning the potential it has to distend its expertise and to liberalize the 172 financial capabilities of the ins titute. IJN did not take long to go on that. A year afterward its privatization the institute has been able to be financially liberalized and hence reduce the government intervention in its administration.By now, IJN has accomplished a great number of medical milestones recognized not only in the country and the region, but also internationally. To further advance ahead in medical industry, IJN is joining its local peer private institutions to take part in the global medical tourism industry. The previous mentioned factors of global medical tourism industrys progressive development served as the butt for IJN to be a part of the industry. Besides, like Singapore, the medical tourism industry in Malaysia is receiving a lot of governments assistants.Being a nationally structured industry, medical tourism therefore is regarded as a potential industry in which would be able to position IJN better. The Malaysian government has been playing an active role in developing the industry in M alaysia since 1998. The main driver of this is to revive the private medical industry after the 1997 Asian economic downturn which has affected the industry very badly. The success story of Thailand which managed to get the industry out of the crisis by focusing on delivering the service to foreign patients has prompt the government to encourage private players to do the same.Consequently, while Thailand has been restructuring the industry without much government involvement, Malaysia and Singapore has been leveraging the industry well with cooperation betwixt the public and the private sectors. IJN has been viewing this very positively and has since become a significant player in the region. While be rapidly developing the industry, the players recognized several major constraints which are able to slow down the progress. Coordination is a key constraint. To increase coordination, the Association of Private Hospitals of Malaysia (APHM) was formed to increase coordination between the private players.The steadily increasing number of foreign patients and revenues generated since 1998 as shown in Table 1 is an evident of the successful strategies implemented. However the industry, weighted against the global development, was still considered as insignificant. Resulting from the governments enthusiasm towards medical tourism as a prospective economic driver industry, and the intensity and potentials portrayed by private sectors, the Malaysia Healthcare run low Council (MHTC) was established in July 2009.The main purpose of the council is to coordinate promotional activities of medical and healthcare tourism industry in the country. As a part of the economic transformation political program, the industry is expected to shift their attention to generate higher patients volume, expand the target market beyond Indonesia which is currently the main market of the industry, create alliance across border, and enhance customer experience in the first phase of the stra tegy. In the following phase, more attention is given on mproving the infrastructure and specialists capacity to attract the more advantageous in-patient segment (PEMANDU, 2010). 173 Table 1. The Volume of Foreign Patients and revenue Generated by Medical Tourism Industry in Malaysia Year 1998 2001 2002 2003 2004 2005 2006 2007 2008 Medical Tourists/Foreign Patients 39,114 75,210 84,585 102,946 174,189 232,161 296,687 341,288 374,063 Revenue (RM million) 14. 1 n/a 35. 9 58. 9 105. 0 150. 9 203. 66 253. 84 299. 1 Another strategy to improve the medical tourism performance is through focusing on specific players.There are approximately 223 private hospitals operating in the country in 2008 (Frost & Sullivan, 2009). Of this number, the government has decided to focus on 35 private hospitals to capitalize on the industry with several characteristics outlined. The characteristics include being a member of APHM, has obtained the Malaysian Society for Quality in Health (MSQH), ISO or oth er international accreditations, offers major specialties and/or some sub-specialties, provides for a minimum 50 beds, and has its own websites.IJN has been one of the selected 35. The commitment demonstrated by IJN towards the industry is paramount. In order to be internationally recognized, the institute has been striving hard to be in the same par with the other international organizations. IJN has been accredited by JCI in 2009, which is a recognition of the strong culture of safety and quality within the organization. The internationally recognized accreditation is expected to improve IJNs international perspective in the future.IJN realizes that in order to make the most of the industry, it needs to bring in a customer-oriented system. Beginning in 2006, the institute has been conducting the Customer cogitate Program. The program was aimed at transforming IJN into a global centre of excellence by ensuring customers satisfaction. In 2008, the institute launched what was desi gned as the second phase of the program, called Customer Focused Culture. While the CFP was initiated to increase awareness of ensuring customers satisfaction, the CFC aimed at internalizing the institutes shared values across the rganization. IJN also comprehend its capacity constraint which is becoming the largest hindrance from going big in the global medical tourism industry. Apart from improving on its culture system, the institute has been intransigent in enhancing its infrastructure capabilities. A major extension work has been carried out at IJN to expand its capacities from 270 beds to 432, eight wards to 13, 23 outpatient clinic rooms to 59, and an international patient centre, to improve its service for customers.This is in line with numerous governments incentives offered to the private hospitals embarking on medical tourism industry to expand their infrastructure capacities. In prideful 2009, IJN has its new wing officiated by the Malaysian Prime minister of religion , who acknowledged that the institute has undergone RM230 million expansion program since 2005. In the same ceremony, the Prime Minister has also announced the proposal for IJN to become a research and development institute, measuring itself against the international best heart institute such as the Cleveland Clinic Heart Centre in the US.These are all evidences of how IJN has been greatly employing the export market orientation behaviors within its organization. In commenting the current development of the industry, IJN has denotative its concern for the country to be more progressive towards promoting medical tourism. 174 The IJN Holdings throng Managing Director, Datuk Mohd. Radzif Mohd. Yunus mentioned that the failure for Malaysia to capitalize on its capabilities in the industry would result to the passing of human capital as they will migrate to other countries with better offers.This is also reiterated by Datuk Syed Hussien Al-Habshee, the Secretary General of National Cha mbers of occupation and Industry Malaysia (NCCIM) who said that the country need to step up its marketing efforts of medical tourism if it wants to catch up with Thailand and Singapore. PEMANDU (2010) has confirmed the assertion by reporting on the stronger growth of the industry by neighboring Thailand and Singapore. The club up of MHTC and several other initiatives are therefore deemed as by the way to help Malaysia to rise in the industry at the global stage.Conclusion and pass As exemplified in the discussion, medical tourism offers a lot of economic opportunities and hence is indeed a potential contributor to economic growth. However, Malaysia, while has been enjoying the growth of the industry vehemently over the pass few years, has not been capitalizing the industry well compared to the other global players. Therefore, the Malaysian players need to revise their marketing strategies and delivery system, as represented by IJN.The cooperative efforts between the public (gove rnment) and the private sectors too must be further carried on, especially for the sake of protecting the interests of the local society and the survival of the medical tourism players. It is strongly suggested for medical tourism players in the country to leverage on their expertise by focusing the marketing strategies on brands rather than on products, as well as enhancing on their infrastructure and culture systems to be more export market-oriented. In doing so, however, the players must not disregard the countrys current edge, which is the competitive cost.In terms of theoretical development, this paper is believed to be able to expose the medical tourism niche and its economic opportunities, as well as the marketing strategies fitting the industry. Quite a number of studies involving Malaysian medical tourism industry have been conducted. Nonetheless, this paper presents the scenario from the view of a single case study. It is highly suggested for similar studies to be conducte d with the mien of empirical data to see the quantifiable aspects of the industry in the future.With such studies, it is expected that further theoretical contributions can be made, and hence the progress of the industry can then be expedited even more. Reference Ang, Elaine. Malaysian Medical Tourism Growing. The Star, February 14, 2009. Cadogan, J. W. , Diamantopoulos, A. , & de Mortanges, C. P. (1999). 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