Upgrade to Pro — share decks privately, control downloads, hide ads and more …

Why Medical Tourism Facilitators Fail

Why Medical Tourism Facilitators Fail

Maria Todd explains why so many medical tourism facilitators fail to successfully sustain business operations and viability growth - and what can be done to better prepare to succeed.

Maria Todd

March 16, 2013
Tweet

Other Decks in Business

Transcript

  1. MERCURY ADVISORY GROUP
    Copyright 2013. Mercury Advisory Group. All rights reserved.
    WHYSo Many Medical
    Tourism Facilitators Fail

    View full-size slide

  2. MERCURY ADVISORY GROUP
    Copyright 2013. Mercury Advisory Group. All rights reserved.
    A common origin
    I became ill
    abroad; had to
    have surgery in
    a foreign
    place; survived
    Other people
    should
    consider this
    option for less
    expensive care
    Make a
    website so
    people can buy
    medical
    tourism
    packages; print
    business cards
    Go to
    conferences
    and meet
    hospitals
    Invitations to
    fam tours to
    exotic places
    for free!
    Send out
    contracts via
    email and they
    come back
    signed
    Make lots of
    money
    referring
    clients to
    providers I
    represent
    Average life span: 6 months

    View full-size slide

  3. MERCURY ADVISORY GROUP
    Copyright 2013. Mercury Advisory Group. All rights reserved.
    Story Outline
    • Anticipation stage: the hero is young, reckless and transported into a
    new world
    • Initial Fascination: At first, the hero is excited or fascinated because
    the new world is puzzling and unfamiliar
    • Frustration Stage: Gradually the mood changes to frustration,
    difficulty or oppression
    • Nightmare Stage: The shadow begins to dominate
    • Thrilling Escape and Return: Just when the threat is closing in, the
    hero escapes

    View full-size slide

  4. MERCURY ADVISORY GROUP
    Copyright 2013. Mercury Advisory Group. All rights reserved.
    Anticipation stage:
    • Our new fledgling facilitator is enthusiastic,
    inexperienced, and transported into a new world
    • The media talks about medical tourism every day in Google alerts
    • Conferences about medical tourism are all over the place
    • There’s a big, huge, medical tourism association to join
    • Put up a website and join some groups on Linked In and the
    Internet
    • Everybody wants cheaper healthcare, right?
    • Millions of people will find my website; some will buy my services

    View full-size slide

  5. MERCURY ADVISORY GROUP
    Copyright 2013. Mercury Advisory Group. All rights reserved.
    Initial Fascination:
    • At first, the facilitator is excited or
    fascinated because the new world
    is puzzling and unfamiliar
    • How difficult can it be? The media says
    medical tourism is gaining in popularity
    everywhere!
    • Deloitte says there is huge opportunity --
    35% CAGR, whatever that means!
    • If I can get 15% commissions on 4 cases per
    month, you can quit your day job
    Rationale: [(4x$10,000) *.15 = $6,000)
    per month]
    • I should easily be able to close 4 clients per
    week!
    • I’ll be rich and successful in short order

    View full-size slide

  6. MERCURY ADVISORY GROUP
    Copyright 2013. Mercury Advisory Group. All rights reserved.
    The Business Plan
    • Buy a business plan online
    • Buy a logo and some stock images about
    medical tourism
    • Set up a website, use cell phone as contact
    number
    • Print business cards, establish email
    • Surf the web for a model facilitator
    contract, have attorney create one
    • Join the association, put their logo on my
    site – so I look official to others
    • Join the Better Business Association, put
    their logo on my site – so I look credible

    View full-size slide

  7. MERCURY ADVISORY GROUP
    Copyright 2013. Mercury Advisory Group. All rights reserved.
    Frustration Stage:
    Gradually the mood changes to frustration
    • Websites ≠ Traffic
    • Contracts ≠ Product
    • Site visitors ≠ Sales volumes
    • Provider websites ≠ Reality
    • Not all accredited hospitals appropriate for
    medical tourism
    • Not all medical tourism destinations are safe
    • Not all physicians deliver quality
    • Not all cases should be attempted by beginners
    • Not all hospitals should attempt all procedures
    • Competition is fierce

    View full-size slide

  8. MERCURY ADVISORY GROUP
    Copyright 2013. Mercury Advisory Group. All rights reserved.
    Nightmare Stage:
    • The reality of impending failure begins to dominate
    • No calls from the website
    • No differentiation from other facilitators
    • No means of capturing market share
    • Hospital suppliers compete directly on price and service
    • Expenses mounting without return on investment
    • Time to renew association membership subscriptions....value?
    • Time to renew domain /web hosting account
    • Is this really an opportunity?

    View full-size slide

  9. MERCURY ADVISORY GROUP
    Copyright 2013. Mercury Advisory Group. All rights reserved.
    Dodging the Bankruptcy Bullet:
    Just when the threat is closing
    in, the facilitator escapes

    View full-size slide

  10. MERCURY ADVISORY GROUP
    Copyright 2013. Mercury Advisory Group. All rights reserved.
    What went wrong?

    View full-size slide

  11. MERCURY ADVISORY GROUP
    Copyright 2013. Mercury Advisory Group. All rights reserved.
    In a business so highly publicized by the media,
    why doesn’t everyone succeed?
    Medical tourism business is not as simple as it seems
    • Launch their business on a “whim” with a web domain and no real business plan or strategy
    to maximize competitive advantage
    • Don’t understand the complex world of “health care” delivery
    • Lack formal business administration experience or education
    • Lack formal logistics training and experience
    • Lack medical terminology, anatomy, physiology, and medical procedures knowledge
    • Have never purchased and/or reviewed the accreditation standards and only assume what
    accreditation signifies
    • Undercapitalized to sustain business operations and slow periods

    View full-size slide

  12. MERCURY ADVISORY GROUP
    Copyright 2013. Mercury Advisory Group. All rights reserved.
    How to Prepare
    ….for success as a medical tourism facilitator

    View full-size slide

  13. MERCURY ADVISORY GROUP
    Copyright 2013. Mercury Advisory Group. All rights reserved.
    How to Prepare
    Learn about Medicine & Healthcare
    • Terminology, Anatomy, Physiology
    • Procedures and Treatments /Technologies
    • Quality & Safety, Accreditation
    • Healthcare Business Operations
    Learn about Travel and Logistics
    • Travel & Tourism
    • Visa & Immigration
    • Geography and Airline Routes
    • Cultural and Legal Issues
    • Travel Planning for Disabled & Infirmed
    • All the moving parts

    View full-size slide

  14. MERCURY ADVISORY GROUP
    Copyright 2013. Mercury Advisory Group. All rights reserved.
    How to Prepare
    Learn about Business Startup
    • Business Plan Development
    • Feasibility Study / Market Analysis
    • Business Risk Mitigation
    • Operational Plan
    • Growth Strategy
    • Advertising and Consumer Behavior
    • Tax and Accounting

    View full-size slide

  15. MERCURY ADVISORY GROUP
    Copyright 2013. Mercury Advisory Group. All rights reserved.
    How to Prepare
    Learn about Legal Compliance
    • Web Content Copyright
    • Internet Privacy & Security
    • Medical Records Management
    • Tax and International Commerce Regulations
    • Dispute Resolution and Professional Liability
    • International Contracting with Suppliers

    View full-size slide

  16. MERCURY ADVISORY GROUP
    Copyright 2013. Mercury Advisory Group. All rights reserved.
    How to Prepare
    Learn about Marketing Strategy
    • Competitive Advantage
    • Competitive Rivalry within the Industry
    • Threat of Substitution
    • Threat of New Entrants
    • Leverage / Bargaining Power of Suppliers
    Competitive
    Advantage
    Competitive
    Rivalry
    within the
    Industry
    Threat of
    Substitution
    Threat of
    New
    Entrants
    Leverage /
    Bargaining
    Power of
    Suppliers
    Porter’s Five Forces

    View full-size slide

  17. MERCURY ADVISORY GROUP
    Copyright 2013. Mercury Advisory Group. All rights reserved.
    How to Prepare
    Technological factors
    · New innovations and discoveries
    · Pace of technological innovations and advances
    · Pace of technological obsolescence
    · New technological platforms (e.g. eHealth, mHealth)
    Environmental factors
    · Environmental protection laws
    · Waste disposal laws
    · Energy consumption regulation
    · Popular attitude towards the environment
    Legal factors
    · Employment regulations
    · Competitive regulations
    · Health and safety regulations
    · Product regulations
    Political factors
    · Stability of government
    · Social policies: (e.g. social welfare etc.)
    · Trade regulations: (e.g. the EU & NAFTA)
    · Tax policies
    · Entry mode regulations
    Economic factors
    · Disposable income of buyers
    · Credit accessibility
    · Unemployment rates
    · Interest rates
    · Inflation
    Social Factors
    · Population demographics: (e.g. aging population)
    · Distribution of Wealth
    · Changes in lifestyles and trends
    · Educational levels PESTEL Framework
    Discover the main drivers of change that may affect business
    strategies, and to discover the factors most likely to influence the
    performance of the business.

    View full-size slide

  18. MERCURY ADVISORY GROUP
    Copyright 2013. Mercury Advisory Group. All rights reserved.
    How to Prepare
    Identify Your Target Medical Tourism Market
    Objective: Market Segmentation: Aggregating prospective buyers into groups that have common needs and will
    respond similarly to a marketing action.
    Market Segments:
    Relatively homogenous
    collection of prospective buyers
    Product differentiation:
    1. Using different marketing mixes to help
    gain competitive advantage with a
    specific segment.
    2. Selling two or more products with
    different features targeted to different
    market segments.
    Market Segmentation
    Stresses 2 Things:
    Grouping people or organizations according to similarity of needs and the benefits desired
    Needs and benefits must be related to specific, tangible marketing actions
    Where the
    Rubber Meets
    the Road:
    Does what you chose to do lead to tangible marketing actions to increase sales and
    profitability?

    View full-size slide

  19. MERCURY ADVISORY GROUP
    Copyright 2013. Mercury Advisory Group. All rights reserved.
    How to Prepare
    “Broadcasting to” vs “Targeting” the Market
    Identify Market Needs
    Benefits in terms of:
    • Features
    • Expense
    • Quality
    • Savings
    “Value Proposition”
    Segment Markets
    Segment and Target the market
    • Who?
    • What?
    • Why?
    • How?
    For Whom?
    Execute Marketing Plan
    Marketing Mix
    • Product
    • Price
    • Promotion
    • Destination
    Create Awareness

    View full-size slide

  20. MERCURY ADVISORY GROUP
    Copyright 2013. Mercury Advisory Group. All rights reserved.
    How to Prepare
    Create a Fam Tour Checklist:
    • What you want to know
    • From whom you want answers
    • Fam tour objectives
    • Medical Tourism Product Inspection
    • Fact-finding
    • Contract Execution
    • Don’t overlook all related suppliers
    • How much is your time worth? Fam tours are not free perks…
    They are fact-finding missions!

    View full-size slide

  21. MERCURY ADVISORY GROUP
    Copyright 2013. Mercury Advisory Group. All rights reserved.
    Thank You
    [email protected]

    View full-size slide