A case for medical tourism in Jamaica: Conclusion
Globally, it is estimated that between 14 million to 16 million patients travelled outside their home countries to seek treatment in 2017. Today, the global medical tourism market size accounted for US$104.68 billion in 2019, and is projected to reach $273.72 billion by 2027.
Unlike traditional tourism — which gives revenues of US$113 per person per day spent by stopover visitors — medical tourism has the potential to generate higher earnings of approximately US$1,300 per medical tourist per day. How can Jamaica develop a medical tourism sector to capitalise on this growing global trend?
On May 6, 2021 the Government’s agency responsible for trade and investment, Jampro, hosted a webinar under the theme ‘Medical Tourism: The Sleeping Giant’ to showcase the benefits of establishing a medical tourism industry in Jamaica. President of the agency Diane Edwards said that the country would be facilitating the investments in medical projects for Portland, St Andrew and St James to pursue the North American market, which is in close proximity to Jamaica. Furthermore, the agency believes strongly that Jamaica’s world-class medical doctors and nurses will attract medical tourists to the island to seek care.
Jampro is anticipating that the first mega project to be developed is the Grande Ridge Medical City in Montego Bay by Bioprist’s founder Dr Guna Muppuri. This Us$315-million proposed investment, if realised, is a 65-acre compound that will incorporate a certified hospital with 300 beds, a college of medicine, a 120-room student living facility, offices, banks, retail and commercial warehousing, business process outsourcing (BPO) clusters, villas, and apartments.
Plastic surgeon Jan Hochtritt says that 40 per cent of his patients are overseas
Jamaicans who want to come home and save money on cosmetic surgical procedures. His Prosurgicare Services Limited is a private hospital specialising in aesthetic surgeries in Kingston, which globally advertises their services by asking: “Are you considering aesthetic surgery?…find your fabulous on the beautiful island of Jamaica.” This facility provides airport pickup and hotel accommodation as a part of the surgical packages being offered to international patients. (Medical Tourism: The Sleeping Giant 2021)
Like cosmetic surgery, medical tourists are seeking reasonable eye care solutions for cataract removal and procedures. Dr Leon Vaughan, consultant ophthalmologist with the Focused Ophthalmics group, says Jamaica has qualified ophthalmologists to offer substantive ophthalmic services for the Diaspora and the region. He suggested that Jamaica could carve out a niche for medical tourists in the provision of critical vitreo-retinal surgery, which is in high demand for diabetics, but currently underserved. He contends, however, that Jamaica must move quickly to fast-track the mechanisms needed to satisfy international best practices, acquire advanced surgical and diagnostic eye care technologies, trade in old equipment, and create a larger number of highly equipped facilities to better serve the island.
Dr Alfred Dawes, who specialises in high-end weight-loss surgical procedures, says it will be difficult for Jamaica to build out this industry to be globally price competitive, as the costs for medical inputs and the tools of trade remain extremely high comparatively to other countries already in the business. For example, the cost of a stapler to divide the stomach in laparoscopic surgeries is four times the cost in Jamaica versus Brazil. Moreover, surgeons who do not have their own private operating facilities must factor in the rental and other associated costs for procedures. In Mexico the total cost for laparoscopic surgery is US$8,000, while in Jamaica the hospital fee alone runs up to US$7,000.
Weight-loss procedures are high on the agenda for medical tourists and, while Jamaica pioneered the first laparoscopic surgical procedure in the region, the country currently lacks adequate local-trained personnel to capture and sustain the international demand.
Still, Jamaica is ideally suited to become a leader in the field of medical tourism. However, what we lack is proactive speed in government policy and an intense focus to succeed in this industry. The mindset required to take advantage of this opportunity must begin with the removal of all Customs duties on medical equipment. With ongoing rapid advances in medical technology, diagnostic equipment becomes obsolete very fast. Imposing Customs duties on medical equipment is counter-productive for our overall health care sector.
A doctor does not buy a CAT scan or a vitrectomy machine for personal use. Increasing the capital costs to their tools of trade will not only cause them to charge higher fees to their patients but also stymie the progress of Jamaica’s heath care services. These costs are also excessively prohibitive to many Jamaican citizens who cannot find the money being charged to use the machines.
The Government would get more from the income tax charged on the doctors versus the one-off duty charge for the importation of first-generation, advanced technological equipment needed to create the necessary facilities. This would naturally develop into public/private partnerships and redound to the best interest of Jamaica’s overall health care system as it would also give more Jamaicans access to modern equipment at lower costs. Incentivising doctors to build their capacity could lessen the pressure on the public sector.
What’s more, if this industry was developed it would ensure that our best and brightest medical minds are kept in Jamaica and not leave the country based on the frustrating working conditions which caused the recent protest by some doctors.
For Jamaica to succeed in a competitive world we must pick winners and industries in which we have a global competitive advantage. Let us move quickly to make this one happen.