Analyzing Medical Tourism's Effects on Australian Healthcare

This report delves into the health economics of medical tourism in Australia, examining its effects on healthcare demand and supply. It explores the history of medical tourism, its development, and its current state, applying microeconomic principles such as resource evaluation and trade-offs. The report highlights the key drivers of medical tourism, including rising healthcare costs, language barriers, and lower transport costs. It analyzes the demand for medical tourism in Australia, considering factors like relative price of health services and the quality of care. The study also discusses the implications of medical tourism on the Australian healthcare system, including opportunities and challenges. The report further explores the different aspects such as medical tourism sub-divided into different aspects as temporary visitors abroad, long term residents, common borders and outsourced patients that are coming from different parts of the country. The report also provides insights into the demand for medical tourism services, factors influencing consumer decisions and the impact on healthcare infrastructure and patient satisfaction.

Health economics
and
finance

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Medical tourism and its implications in demand and supply of health care in a Australia.........3
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Health economics and financing is the health system and functions which is concerned
with the mobilization, accumulation and allocation of resource that is covers the health of people.
This is serves as prefect primer for the economic analysis of the medical market. This is
important aspects for considering health of people in proper manner (Hira, 2016). The present
essay is based on the “Medical tourism and policy implications in demand and supply of health
care in a Australia”. Medical tourism has a significant impact on the country national economy
as well as on demand and supply have influenced this change of direction. The main objective of
this essay is to explore and highlight a health economics perspective effects on medical tourism
in Australia. The paper will explore the history of medical tourism: its development and current
from the perspective of microeconomic theory including the evaluation of resources and trade
off. The will apply principles related to health such as what drives demand and supply,
opportunity cost and its impact on resources.
MAIN BODY
Medical tourism and its implications in demand and supply of health care in a Australia.
Medical tourism is the where people if live in one country, move and travel for taking
best medical treatment like dental and surgical care while at the same time receiving equal to or
more greater care in the world. They have in their own country and are travelling for medical
care because of affordability in order to better access to care or a affordable. It is very important
to note that there is a distinction between a medical tourist and a medical traveller, both are
desirable, medical tourism is provide more general economic advantage, particularly in the
tourism industry (Brick, 2017) . On the other side, medical tourism has had the major growth in
the recent year. As such, the patient mobility is increasing the both way in developed and
developing country. This will help to severs sources and destination market. There are some key
factors which are increase in medical travel over the last two which are as follows:
 Rising cost of health care in industrialised countries.
 Reduce language barriers
 Trade liberalisation
 Lower transport costs
At the lower end, the number of foreigners are looking for medical treatment across an
international border was estimated to be the 60000 to 81000 people per year on the basis of 2008.

The main reason of people to travel is generally access medical treatment, technology and care of
superior quality of their home country. There are such factors which influence the decision to
travel for medical treatment. The reason for medical travel are as follows:
 Long waiting lists associated with the proper medical treatment
 Cultural affinity in terms of language, food and religion
 Geographical proximity
 Cost saving
 Highest quality of health care services
Australia
As Australia population ages and the burden of chronic disease grows. This playing an
increasingly crucial role with the primary care accounting for more than 35 % in the health care
sector. The number of Australia GP which 32275 in the 2014 – 2015 is growing slowly. It
includes more than working women as per male doctors. Currently not systematic collection of
data which is indicate a global size of the market and its estimation are wide and varied. Current
demand which is based on available data and information gathered form the consultations, the
Australian market is small and scattered. As per the tourism research Australia, the total number
of visitors in Australia around 5.5 million people. The key specialities of Australia are as
follows:
 Cosmetic or plastic surgery
 Fertility surgery
 Weight loss surgery
 Dermatology like skin cancer treatment
 Lesser extent and cardiac surgery
Those are the key specialities of Australia and which built further in order to develop their
medical tourism industry by including those specialities in their medical treatment. Those are
creates opportunities for Australia country (Hejduková and Krechovská, 2018) . The Australia is
provide the best medical treatment to customer by taking care of them but those treatment are
more costly as compare to other country, this can create issues for country which is affect
economic of country because of customers are move towards other country for taking best and
affordable treatment and surgery. It can creates opportunities and challenges for country with
existing demand and supply which are as follows:

Demand of medical tourism
There are different aspects which create demand for medical treatment in country as well
as create opportunity and challenge for its. This is helpful for attract more customers towards
treatment and build loyalty of customers towards Australia.
Drivers of medical tourism demand
The interrelated set of variables and disentangling these drivers, particularly in the market
by market basis and can be challenge. Dissatisfaction for their own domestic health system,
lower quality of treatment and affordability of medical care in the country is the highest and
biggest cause of people travelling for medical care. There are ample number of drivers which are
showing below:
 Relative price of health services: Australia is enable to compete with their global medical
treatment based on price alone. The price of health care for the most surgeries are highest
as compare with their neighbours countries. Surgery costs by country in $ (2008)
Services USA Singapore UK Australia
Heart Bypass $130000 $16500 $24544 $23070
Knee
replacement
$40000 $11000 $16625 $13902
Hip replacement $43000 $9200 $14000 N/a
Spinal fusion $62000 $9000 N/a N/a
Facelift N/a N/a $5250 N/a
The table is shows the costs and prices of surgery in Australia is still considerable lower
as compares to USA. The USA is continue rise prices of their services in market place. This
create the great opportunity for Australia because of lower price because of lower prices rate.
Medical tourism is the growing sector that provide various implications that are related to
health systems. As there are different medical tourist industry that is having impact on health
system (Jawadi, 2019) . As in South-east Asia this sector is expanding at faster pace and
enhancing rapid growth in business opportunity for the future. After globalisation there is growth
in flow of patients and different health professionals are working in this sector for making it
better across national borders too. There are some features of medical tourism as under:

 Movement of people towards health treatment
 Shifting of rich people towards developed nation
 Infrastructure in certain health care centres getting improved for the purpose of providing
better facilities to patients.
 Development in both private as well as government sector is improving drastically and
enhancing medical facilities for the future.
According to the Grossman model affect daily as well as long health consequences that provide
three different roles as role of input into production it comprises of different segments as time
spent working, playing, improving health and being ill. On the other hand, role of capital is
another aspect that help improvement in health. Medical tourism is related to various health
issues that arises and not provide proper treatment to people. Across different international
borders medical tourism has its pace and providing different aspect in the medical sector for
enhancing business operations in evaluating medical care to people in the country. As it provide
changes in tourism sector as there are so many facilities that is being provided for evaluating
health and care services (Pandey, 2016) . Medical tourism sub-divided into different aspects as
temporary visitors abroad, long term residents, common borders and outsourced patients that are
coming from different parts of the country.
Patterns of travelling from various sources also changes as it help in establishing certain
destinations. It is important as developing medical sector at fast pace and there is more demand
of tourism sector in the market. Demand of services is another concept that involve in medical
tourism sector that enhance business operations. There is volatile demand of services as it
provide to patients that are indulge in wider aspect of economic and external factors that provide
help in enhancing consumers towards medical tourism. As demands of patients are changing that
affect infrastructure of health and care centre as they have to adopt different technologies as
implementing it into it. For implementing change in health sector wider scope will have to be
considered for enhancing operations in medical sector. Consumers are spending proportionate
money into medical check-up as they are getting better services that lead to impact medical
tourism. It is important for understanding concept of medical and evaluating various provisions
that help in enabling various medical tourism for the future.
Medical tourist is providing various destinations that will be attempt for promoting the
cultural, heritage and different recreational opportunities. On the other hand, economic

uncertainty is another concept that include illness such as myocardial infraction(MI), cerebral
vascular accident (CVA). There is risk in case when there is no insurance of patient related to
disease that is possessed by it. There are destinations that help in providing changes in medical
sector. Different biomedical treatment is being performed in various medical centres as provided
in development of medical sector in the future. As there are number of countries that offer low-
cost treatment to patients. There are different drivers that provide effective utilization of various
health systems and enhancing technological aspects in business. These help in providing
effective use of resources that will be implemented in medical sector. It is essential in providing
various aspect that create problem and evaluating medical tourism sector. Various general
treatment is being provided for enhancing in business. There are three main dimensions that will
be provided in medical sector as bringing out channels that lead to gather cultural heritage in
advancing various aspects as implementing improvement in health and tourism sector.
Medical tourism is providing different typology that include portals, media sites,
consumer driven sites etc. It help in satisfying range of ends and needs for enhancing different
aspects for creating quality of information. Online health information is being provided for
enhancing changes and evaluating tourist destination that provide reliable quality of services to
patients (Royer, 2017). In contrary, through advertisement and marketing decision of consumer
influenced as they shift from one medical health care centre to another. There are different
segments that will be provided in medical sector for enhancing future treatment for patients.
There are various range of treatment process that help in providing quality and safety to
patients. According to national health services it is found that approximately nine million people
are taking services of Ambulance in the country. For improving treatment process technological
changes also lead to implement in enhancing for the future. In medical tourism new element will
be included that help in providing different aspects for the future. It is important in analysing
treatment that will be provided for implementing changes in business as it provide dynamic
impact on business. It is important that patient will be satisfied with services that wuill be
provided by health care centre. Patients satisfaction level is not up to mark as they are
complaining regarding services that is being provided for enhancing health care. There are
various aspect that provide effective use in medical sector to prevent patients from being getting
late for improving treatment aspects. As cosmetic surgery is ongoing practise that is being done
by practitioners for providing best quality services to patients. With the changing scenario

medical tourism also improving as advancement in changing needs and requirements of patients
towards health care. Patients are demanding services that help in fulfilling their needs and
evaluating changes for the future (Leipziger, Park and Park, 2015). For the growing scenario it
is essential in providing different aspects that will be achieving in enhancing change for future
perspective. As there are growing sector in medical tourism that lead to provide changes in
evaluating various changes in health system.
In terms of dental treatment there are some complications that may arise so it is essential
in meeting requirement that provide effective change in business for developing enhance in this
sector. It is ethical that patients will be treated as providing different aspects that lead to create
differences in enchaining stages in caring process. Sometimes, issue may occur regarding care
and safety of patients that help in evaluating changes in treatment process. The medical traveller
enhancing in providing changes that help in evaluating effective use of equipments that will be
used for carrying out operations in medical sector. Patients will be aware from treatment that will
be provided to them and enhancing changes in evaluating aspects that will be provided for
enhancing changes as evaluating various perspective (Hirshleifer, 2015). There are different
techniques that include in medical tourism for bringing changes in effective use of resources in
medical sector. There are code of ethics that will be applied in medical sector for improving
business change for the future. As it is important in providing aspects that lead to enhance
various objectives in medical sector for evaluating tourism organization.
It is important in enhancing changes that will provide effective practices in medical so
that patients will be satisfied with services. External quality assessment is an approach that
provide clarification regarding services that is given to patients for enhancing business
operations. Increase in medical tourism help in connecting with other countries and enhance
changes for the future. Due to this different techniques will be adopted that are practised in
evaluating quality and safety as regarded as efficient use of resources. Through this techniques
enhancement will be done in equipments that are used for creating changes in evaluating aspects
in medical sector. There is financial impact on medical tourism as most of patients are not
involved in getting their treatment from outside countries so this lead to decrease usage of
various techniques in business. There are various range that provide effective changes and
enhancing health and care centre. Demand of health care system is increasing as it provide
different aspect as at the time emergency patients have to roaming from one place to another. As

in Australia use of ambulance is increasing at higher rate as patients prefer it more or saving life
of people.
CONCLUSION
From the above study it can be summarised that medical and health care system plays an
effective role in providing best services to patients. There are different drivers that will be
included in medical sector and provide effective service to patients in evaluating changes in
health and care sector. There are different specialization that will be practised under medical
sector that enhance business operations. Medical tourism is growing at fast pace in the country as
due to technological advancement that help in bringing innovation and improving productivity
for the future course of action. Therefore, it is essential in bringing changes in health and care
system for providing more opportunities and indulge in giving best services to patients.

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