Medical Tourism Category Overview
Yandex International Business Development [email protected] +1 857.288.8762 [email protected] +44 020 3291 3306
Market Size
In 2013 Russians spent over 1.1 billion dollars on health care abroad.
0.86 0.98
1.10
0
0.2
0.4
0.6
0.8
1
1.2
2011 2012 2013
Annual Expenditure on Medical Services Provided to Russians Abroad
Source: Insurance Marketing Report
Bill
ions
of D
olla
rs
Market Structure by Business Segment
Medical tourism makes up the majority of all healthcare services provided abroad (58,8% of market).
Source: Insurance Marketing Report
Medical tourism 58.8% Direct appeal to the
hospital 20.0%
Travellers insurance
20.0%
VMI (voluntary medical insurance)
0.8%
International health insurance
0.4%
Top Spenders in International Tourism:
With over $43 billion spent on international tourism in 2012, Russia shows an impressive advance in recent years, moving up to 5th position with over 35% annual growth. Russia along with China, India and Brazil will drive growth in the coming years.
Source: World Tourism Organization (UNWTO), Data as collected by UNWTO June 2013
Beach tourism 28.3%
Sightseeing holiday 19.7%
Medical tourism 16.5%
In the Country 14.2%
Hiking 13.4%
Sanatoriums and rest houses
7.9%
Main Locations & Purposes of Tourism
Medical tourism made up 16.5% of the tourist market in Russia.
120,000 145,000
215 000
300,000
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2010 2011 2012 2013
Outbound Patient Flow Dynamics 2010-2013
Source: Patient Management
Patie
nts
Over 300,000 Russians traveled abroad for medical care in 2013.
Projected Growth in 2014 In 2014 the number of search queries on outbound medical tourism grew by 23%. Future growth is expected to be fueled by:
• Population aging and the rise of chronic diseases
• Rising interest in disease prevention
• Decreasing trust to the local health care system
• Rising interest to alternative therapies
• Motivation behind outbound medical tourism
• Market structure
Medical Tourism Market and Health Treatment Abroad
Motivation of Outbound Medical Tourism
Source: McKinsey and Company, www.treatment-abroad.ru, Medical & Health Tourism Magazine, №6
Determining factors for outbound medical tourism in Russia:
Going abroad for
tech medical
help 42.0%
Rely on a higher service quality 33.0%
Need urgent help,
cannot obtain
treatment in the home
country 15.0%
Seeking treatment abroad to
save money 10.0%
Other Countries
Cannot obtain
treatment in the home
country 72.0%
Combiningboth
treatment and rest 21.0%
Seeking treatment
in CIS countries to
save money 7.0%
Russia
The lack of domestic high quality treatment in a wide range of cases is the major reason for outbound medical tourism for Russians
Local Opinion on Healthcare in Russia
This objective state of things combined with a profound lack of trust in the local health care system contributes to a low opinion of the Russian healthcare system.
54%
28.5%
1.5%
How does the local population estimate national health care system?
Poor
Sufficient
Good
Source: Medical & Health Tourism Magazine, №6
Determinants for Patient Choice of Healthcare Providers
The Russian audience is still extremely price-conscious. Approximately 50% of searches related to treatment abroad are made by users from the outer regions of the country. Despite the fact that 65%+ of patient flow from Russia is directed to Israel and Germany, “cheap” countries such as Turkey, CIS-countries and Eastern Europe remain popular.
Source: Medical & Health Tourism Magazine, №6
35.0%
32.0%
12.0%
12.0%
8.0% 1.0% The cost of treatment
Range of services
Distance and location convenience
Recommendations of friends and acquaintances Doctor recommendations
Advertising
Segment Volume: • User interest dynamics • Audience location
Medical Tourism Market and Health Treatment Abroad
14
1,216,562
1,500,622
1 2
Segment Dynamics
wordstat.yandex.ru. Apr’2012 – Mar’2014
Apr 2012 – Mar 2013
Apr 2013 – Mar 2014
Que
ries
on tr
eatm
ent a
broa
d
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
2012-04 2012-05 2012-06 2012-07 2012-08 2012-09 2012-10 2012-11 2012-12 2013-01 2013-02 2013-03 2013-04 2013-05 2013-06 2013-07 2013-08 2013-09 2013-10 2013-11 2013-12 2014-01 2014-02 2014-03
+23%
15
User Interest Dynamics: +17% in 2014
User interest is expected to grow by 17% by 2014.
Forecast (Apr’2014-Sep’2015) Apr’2012-Mar’2014 statistics
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug
Que
ries
16
Audience Location: Top Cities
The majority of searches are made by users from the largest Russian and Ukrainian cities: Moscow, Saint-Petersburg and Kiev (36%). In Russia, searches from Moscow and Saint-Petersburg make up 40%+ of the total volume.
28.05% 5.30%
2.48% 2.43% 2.10% 1.94% 1.59% 1.59% 1.56% 1.23% 1.19% 1.00% 0.99% 0.98% 0.92% 0.89% 0.83% 0.82% 0.78% 0.72%
Moscow
Saint-Petersburg
Ekaterinburg
Kiev
Nizhny Novgorod
Rostov-on-don
Novosibirsk
Krasnoyarsk
Ufa
Irkutsk
Krasnodar
Perm
Chelyabinsk
Samara
Minsk
Saratov
Kazan
Voronezh
Tyumen
Vladivostok
Sear
ch V
olum
e fo
r hea
lth c
are
abro
ad
17
Audience Location: Regional Popularity
Regional popularity is heavily dependent on two factors: • Purchasing power (high affinity in Moscow: 152% compared to average
107%); • State of healthcare system in region (the highest affinity: 350-450% in the
north regions of far East).
User Interest in Destinations: • By regions / countries • Search patterns
Medical Tourism Market and Health Treatment Abroad
Health Treatment Abroad: Destinations
Queries on medical tourism and health treatment in TOP-10 countries make up to 65% of all queries. Most users are seeking treatment in European countries (40%), Asian (China, India) – 18,3% and Middle East – 22,2%.
39.8%
18.3%
22.2%
12.9%
6.8% European countries
Asian countries (China, India etc)
Middle East
CIS-countries
Other countries
Health Treatment Abroad: Top Countries 46,817
44,118
28,206
17,100
13,486
10,462
7,670
7,510
5,797
5,665
5,338
5,056
4,576
4,448
4,360
Israel
Germany
China
USA
Ukraine
Korea
Bulgaria
Czech Republic
Kazakhstan
India
Turkey
Hungary
Belarus
Japan
Abkhazia
Aver
age
num
ber o
f que
ries
per m
onth
User Interest Dynamics:Top-10 Destinations
0
10,000
20,000
30,000
40,000
50,000
60,000 20
12
May
Ju
n Ju
l A
ug
Sep
O
ct
Nov
D
ec
2013
Fe
b M
ar
Apr
M
ay
Jun
Jul
Aug
S
ep
Oct
N
ov
Dec
20
14
Feb
Mar
Israel
Germany
China
Bulgaria
Czech Republic Hungary
Slovenia
India
Turkey
USA
Que
ries
User Interest Dynamics:Top-10 Destinations
+4%
+69%
-3%
+38%
+14%
+60%
+35% +33% +31% +27%
-0.4
0.1
0.6
1.1
1.6
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000 Is
rael
Ger
man
y
Chi
na
Bul
garia
Cze
ch R
epub
lic
Hun
gary
Slo
veni
a
Indi
a
Turk
ey
US
A
Apr 2012 - Mar 2013 Apr 2013 - Mar 2014
Que
ries
Search Patterns: Generic & Specific Queries
For Israel, Germany, Bulgaria, Czech Republic, Hungary, Abkhazia, user interest has a “universal” form for more generic queries including “clinics”, “hospitals”, “treatment” etc. For Ukraine, Korea, Kazakhstan, India, Turkey, Japan, user interest is more specific. For the majority of queries, users specify the type of operation or disease.
65% 71% 58% 59%
46% 51%
82% 75% 47% 44% 50%
79% 58% 47%
89%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
100% Is
rael
Ger
man
y
Chi
na
US
A
Ukr
aine
Kor
ea
Bul
garia
Cze
ch R
epub
lic
Kaz
akhs
tan
Indi
a
Turk
ey
Hun
gary
Bel
arus
Japa
n
Abk
hazi
a
Generic queries Queries on specific deseases
Treatment in Israel: Top-15 Related Diseases 5,164
906
733
652
643
799
696
437
333
316
265
210
174
171
167
Oncology
IVF (In Vitro Fertilization)
Psoriasis
Treatment of the spine (hernia)
Dental implant treatment
Joint replacement surgery, arthritis
Birth tourism and maternal health, infertility
Treatment & care for diabetes
Cerebral palsy
Hepatitis treatment
Epilepsia
Sclerosis
HIV
Allergy
Neurosurgery
Aver
age
num
ber o
f que
ries
per m
onth
Treatment in Germany: Top-15 Related Diseases
1,535
1,077
1,022
866
520
481
444
368
287
268
253
180
153
153
Oncology
Treatment of the spine (including hernia surgery)
Joint replacement surgery, arthritis
Birth tourism and maternal health, infertility
Dental implant treatment
Cerebral palsy
IVF (In Vitro Fertilization)
Epilepsia
Hepatitis treatment
Treatment & care for diabetes
Orthopaedics
HIV
Sclerosis
Neurology
Aver
age
num
ber o
f que
ries
per m
onth
Thank you!
Yandex International Business Development [email protected] +1 857.288.8762 [email protected] +44 020 3291 3306