Date: 01-12-2024 at 17:22
Around Aug 2023 in Patna, I listed my apartment on Airbnb to earn some money to improve the odds of survival in the journey of building the World’s biggest Healthcare company from India. Each new Inquiry used to be an extra boost of oxygen.
Like most hosts, I received an inquiry on Airbnb but unlike others, this was a long stay - 20 days. I offered the lowest price for a small stay in Patna (869/Night) because I wanted to keep the price as a differentiator. Also, it was a shared listing - I was living in one of the rooms.
However, for long stays, I used to offer discounts therefore the per-night charges were INR 750. Also, for long stays, guests mostly visit the property before booking. This inquiry was by someone working in Zomato (Working from Home in Patna), he was booking for his friend who was coming to Patna for Medical treatment - Orthopedic (something to do with ankle replacement).
The Hospital was in Raza bazaar and my apartment also had a lift therefore a suitable property. His friend visited my apartment and loved the decoration (I decorated my first apartment like my home) and on further enquiry about the guest, I got to know his friend was coming from Assam.
We finalised the 750/night stay price (I took a long breath because it was INR 15K enough to cover my rent), and the next day, his friend checked in with his parents. There was so much going on in those days therefore, I did not give much thought.
“This Hospital is a small hospital in Raza Bazaar, Patna opposite pillar no 22. I used to cross that often but never thought about the fact that it was attracting patients from Assam”.
This story is an example of inter-state Medical Tourism - someone coming from Assam to Patna for medical treatment. You see, this is a big deal because Bihar is half of GSDP of Assam but offers quality care that is forcing someone to travel to Patna.
Inter-nation Medical Tourism - someone coming from other countries to India for medical treatment - takes all the attention. I am not sure if current Medical Tourism data also includes inter-state Medical Tourism?
I see Medical Tourism around me and it can only be because of three reasons:
Unavailability: People from different parts of Bihar come to Patna for Medical Treatment because they don’t have access at their location.
Affordability: If the net treatment cost (including non-healthcare expenses: travelling, food, and lodging) is lower significantly without compromising quality.
Convenience: The Indian Medical system is simpler compared to developed countries like the USA therefore, the convenience of treatment also is a reason for Inter-nation Medical Tourism.
We only have data about Inter-nation Medical Tourism therefore we need to do the math in reference to Inter-nation Medical Tourism:
Medical Tourism Business in 2020 = $9 billion
Chennai, Mumbai, Delhi, Bangalore etc are up to 90% contributors.
Let’s assume, the Inter-state Medical Tourism size is 50% of Inter-nation, I am certain the number must be higher.
Inter-state Medical Tourism in 2026 (projected) = $7.5 billion (INR 63,750 Cr)
Unlike, Inter-nation Medical Tourism, which is influenced by Convenience, inter-state Medical Tourism is driven by availability and Affordability.
I am certain the growth of Inter-state Medical Tourism will be higher compared to the latter therefore Bihar can be India’s best inter-state medical tourism Hub: the net treatment expenses are significantly lower.
This trend will be fueled by the following:
Low non-specialisation labour cost
Connected and Lower public transportation and lodging costs
Lower Real state costs thanks to the BIADA and other GOB departments and their incentives
Massive physical infrastructure (Public and Private) in the pipeline
But to satisfy this massive demand, the infrastructure (physical and digital) is not enough therefore, the Government of Bihar (GOB) and various departments are offering incentives to entrepreneurs and industrialists to capture this opportunity.
For example:
BIADA is offering concession of Land leasing of up to 80% you can’t get this anywhere in India
The Department of Information Technology (DIT) has a dedicated incentive structure
The Health Department is offering various Public Private Partnerships (PPP) for the development of Healthcare physical infrastructure.
I have observed, significant development around Bihar Tourism, I think the Bihar Government must build some strategy that could help the state capture this opportunity which will eventually help in creating a surplus at the state level.
The outcome would be better if the Government followed a PPP model because there is predictable and visible money on the table and with a bit of support entrepreneurs and investors across India would like to capture this.
Thanks for reading, we are building Jilo Health and always looking for right team member to work with, say hi @ suman@jilohealth.com