Medical tourist arrivals in Asia hurt by financial crisis

US patients that lack medical coverage for certain procedures, as well as those who have no coverage at all, have been looking to hospitals in Asia for medical treatment in recent years. There have even been signs that insurance companies might begin to encourage the trend, in order to save on treatment cost reimbursements.

Bangkok’s Bumrungrad Hospital has been hard hit this year by the global economic downturn, and also the anti-government riots in Thailand. The political unrest in the country turned to street protests in Bangkok, accompanied by rumours of a new military coup. Concerns over security and the political instability have discouraged potential patients from travelling to Thailand.

What has particularly been worrying to management at Bumrungrad is the increased cost of travel to Thailand from the US, due to the financial crisis. It makes it more difficult for patients considering a Bangkok hospital to make the trip than in the past. “We are not predicting robust growth,” noted the chief executive of Bangkok’s Bumrungrad Hospital, Curtis J. Schroeder. He added the hospital will take advantage of the empty hospital beds to refurbish rooms.

Analysts are predicting a decline in earnings of 9.2 per cent for this year and 20.9 per cent for 2009. “We foresee the number of international and local patients to be scant,” noted analysts based in Singapore. “Patients delay unnecessary or nonemergency treatments (i.e. plastic surgery, hip/knee replacement, etc.) and decrease length of stay, as the financial turmoil has caused significant cutback on expenses.”

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www.bumrungrad.com