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  • Published on: 14th September 2019
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Medical Tourism denotes a process when people who live in one country travel to another country to receive medical treatment from a different country. There are many reasons for people to go to different country such as

• Better quality of healthcare,

• Low cost of treatment

• Less Wait time period

• More advanced technology

AngloMedical is private limited company which organizes medical treatment for resident in the UK. It was incorporated on 20th January 2009. The current Director of the company is Ella KITROMILIDES AngloMedical was started with a vision to assist international patients in navigating and accessing the excellent but complex private healthcare system in the UK. Their clients also include UK natives and overseas patients who are need of medical care of any type. They do all the major work for the client from consulting and booking to interpreting and assistance with visas and accommodation. They arrange consultation with a top medical professional in one of the best UK private hospitals. They are specialized in helping patients who want the high standard of healthcare and state-of-the-art diagnostic and medical technology for themselves.

This brochure provides insight for AngloMedical to expand their business in Southern India. As AngloMedical has already set its name in providing best healthcare facilities to the patients who want their treatment in UK. They have knowledge of the industry and going to the India for medical tourism is very good option.

The Medical Tourism Market Report: 2015 found that India was "one of the lowest cost and highest quality of all medical tourism destinations, it offers wide variety of procedures at about one-tenth the cost of similar procedures in the United States.” Government has taken many steps to promote India as global medical destination. The Indian Ministry of Tourism has removed many restriction on visa to ease travel.

 Some of the reason for going to India for medical treatment are: -

• Most estimates found that cost of treatment in India start at around one-tenth of the price of comparable treatment in the United Kingdom.

• There is no waiting time.

• Quality of treatment is High.

• Demographic system of governance.

• The geography is diverse with many tourism destinations according to the patient's schedule and health.

• Government has removed Visa Restrictions on tourist visas and has introduced new E-visa Service.

• The rich culture Heritage of India.

• There is No language Barrier for English Speakers in the country.

• Yoga, Ayurveda, meditation, Allopathy and other traditional methods of treatment attract medical tourists to India.

• There are 34 Joint Commission International (JCI) - accredited hospitals in India and are growing.

The main focus of the company will be on the southern region of India, particularly in Chennai.

Advantage of Chennai: -  


• The city of Chennai has been termed "India's health capital”.

• The government and the private Institutions, both provide the healthcare at reasonable rate.

• World class hospitals equipped with the latest medical equipment and facilities.

• Chennai has a strong base of healthcare non-profit organizations and non-government organization.

• Five-star hotels to offer you luxury accommodation.  

• 24-hour Multilingual help desk, speaking your language.  

• Facility to offer food of your choice.  

• Internet, fax and telephone facility in the room.  

Hospitals which are providing services in Chennai –

• Apollo Hospital

• Christian Medical College, Vellore

• Fortis Healthcare

• Global Hospitals

• Institute of Cardiovascular Diseases

• MIOT Hospitals

• Sankara Nethralaya Eye Hospital

Cost comparison between India & UK

Key operators in Health tourist Industry

Figure 1

Macro Analysis

The macro environment of market affects every business. It is very important to analyse the macro environment to reduce the effects of negative factors.

PEST analysis examines the political, economic, social and technological factors affecting the business


• India is a democratic country with stable democratic government which insures stability for medical tourism industry. Indian government is taking many steps to promote medical tourism to outer world. Promotion of medical tourism has been included as the new initiatives by the Ministry of Tourism. They produce brochures on medical tourism, create plays and ads to promote medical tourism. The Government has set up National Medical and Wellness Tourism Board to help those people who are visiting the country for medical services. The Marketing Development Assistance Scheme (MDA), administered by the Ministry of Tourism, provide financial help to the tourism service providers who are properly registered. All these steps are taken to increase the share of Indian medical tourism market in the world. More hospitals are given accreditations which meet the standard set by govt. The Ministry of Home Affairs has introduced a new category of visa which is “Medical Visa” for the foreign tourists visiting India for medical treatments. They have also removed many restrictions on medical and tourist visa to make the healthcare process easier and more accessible.


• India is the world's sixth-largest economy by nominal GDP. It has one of the fastest-growing service sectors in the world. In October 2015, the medical tourism sector was estimated to be worth US$3 billion. It is projected to grow to $7–8 billion by 2020. A high economic growth ensures increase in promotional expenditures, more advancement of technology and more advance facilities in heath sector, beautification of cities and town. All this will boost the medical tourism industry. Also, high growth will result in increase in incoming people for healthcare and tourism.


• India has a very diverse culture with 29 states and 7 union territories, and each having their own different culture, traditions, cuisines and language. But the official language of India is English which means all the hospitals, hotels, major places, institutions use English language which makes it easy for the tourists to communicate to people in India without any difficulty. There is a Sanskrit shloka – “ATITHI DEVO BHAVA” which means Guest is God. It is also the tagline of Indian Tourism. This is essence of Indian culture to treat their guest like God. This warmth and love is appreciated by people all over the world.


• Information technology in India has progressed a lot during past years. India's broadband and cellular infrastructure is very good and up to date. Tourist don't find any difficulties with network and technology in major cities, although in small cities and rural areas there is still outdated technology. But in case of medical tourism, hospitals in India have UpToDate and very advanced technology and modern equipment for treatment. Even the technology in transportation is also advancing with time. India still have lot to do in transportation advancement.

 Micro Environment


• Bargaining power of suppliers is high as people want quality in treatment and no waiting time for their treatment process. There are very smaller number of suppliers who provide quality service which make them to get price of their demand.


• Bargaining power of customers is low because of the trust and loyalty they put in service providers but the recent increase in options has given them some bargaining power.

• Prices play an important role in customers' making their choices about agent and place for their medical treatment.

• With increase in the awareness of healthcare and diagnosis, number of customers has increased.


• Intensity of existing rivalry is very high because a lot of expenses are done by them on advertising to attract customers.

• Number of private players in the market has increased which led to more competition.

• Competition in market is not only with the firms who provide medical help but also with firms which provide domestic tourism and hospitality because customers can choose these facilities on their own after treatment to relax.

• Rivals differentiate with the leisure medical tourism package they provide


• There are many options available in the market like government hospitals, charity hospitals etc. Customers can go for them which are inexpensive.

• Customer might go for e-health.

• Customers from abroad can go for Thailand or Singapore for treatment which gives a great competition.

• Government also provides more incentives and low-cost treatment to some people.


• More and more players are adding to the market with time and increase in economy.

• Treatment is cheaper than other countries which leads to many foreign competitive entries to provide their services in India.

• There is already been increase in number of service providers in country.

• There is reduction on taxes and process of entering the market is not difficult which brings opponents.

Entry Mode

A good and appropriate entry method is very important for every foreign firm who wants to invest in India. There are many factors which should be taken into account before deciding which one is the best way to enter in the market like nature of business, scale of business, concerned sector, financial strength, economic and legal conditions in India.

Let's take two methods to compare

1. Equity method - Joint Venture

2. Non-Equity Method - Contractual Agreement

1. Joint venture

Joint venture is an investment entry method which as term suggests is when two or more partners agree to do business and contribute to achieve the objective. Joint venture with foreign entities are allowed in India but compliance with the Foreign Exchange Management Act 1999 (FEMA), rules and regulations framed under it, and the Foreign Direct Investment Policy of the Government of India. It can be in form of company, contractual or partnership. Not all kinds of joint venture are allowed for a foreign firm to enter in the market. But this firm can enter in the market by way of company joint venture. In this method they can either incorporate a new company or collaborate with the promoters of the existing company.


• Combination of knowledge of both the foreign and domestic company.

• Access to new technology.

• Sharing of the risk

• Good image of local company in market


• High entry cost

• High risk

• Complicated registration process

• Less control

• Conflict of interest

• Cultural clashes

Figure 2

2. Contractual agreement

In the Contractual Agreement as an entry mode we can look into many factors and ways to do contract with the already working firms in the country. We can do two types of contractual agreement – management contracting and sub-contracting. Management Contracting is when a domestic company which is already functioning in the market supplies the management know-how to the foreign company which provides capital. In Management Contracting, the agreement is made between two parties. It is very low risk method to get into the market and there is very less chances of loss in this method. Management contracting also helps the foreign company to prevent setting up operations in the country for some period of time. We can also do Sub-Contracting. In Sub-Contracting, foreign company gives the domestic company a certain order to complete. They take some order from own country or other and ask the domestic company to do the work for them


• Low investment

• Low risk

• Easy way to gain foreign market's experience

• Domestic company already know the market

• Less time consuming

• No separate legal entity.


• Low profit

• Less control on the domestic market

• Weak position in negotiations with other parties

• No tax advantages linked to contractual agreement

After considering both of these entry modes, it can be seen that both are very good option to consider but the mode we'll be taking is Company Joint Venture as it has more competition aspect and the company can gain more profit. Moreover, with profit, risk will be shared too.

 Internal Competitors


 Vaidam is an ISO registered medical tourism company in India

• The main focus is on giving patients the best treatment in India.

• It has NABH accreditation.

• The unique thing about Vaidam is their transparency in costs. They have provided details of all the medical procedures with approximate costs, accommodation, airfare, visa, daily expenses details on their website.

• They provide quality treatment within the budget of customers.

• They are known for their responsiveness, transparency, power of comparison and customer services.

• They have signed MoU's with over 70 leading hospitals in India .


MediConnect India is very experienced medical tourism company in India from a very long time.

• It has helped many patients visiting India from the initial process of giving opinions to post medical check-up.

• It has been awarded National Tourism Award twice in 2009-10 & 2010-11 by Ministry of Tourism.

• They provide personalised packages according to patients requirements.

• They arrange everything from airport pickup to stay and post treatment queries of patients.



A medical tourism company can enter the market through Joint Venture with an Indian company to start business without much difficulties. A very good layout of website with lots of information will help in getting more customers.

To compete in medical tourism industry, a company should provide help and guide customers from starting to end in their journey. They should be transparent and solve every problem faced by customers. Some more services should be included in the packages like airport pickup and drops. Accommodations and new travel points should be included to visit post treatment to relax. Company should also help in visa procedures. They should provide most of the details on their website for customers to look and decide.


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