Medical Tourism Category Overview

Yandex International Business Development

ussales@yandex-team.ru
+1 857.288.8762
uksales@yandex-team.ru
+44 020 3291 3306

Medical Tourism Market and

Health Treatment Abroad
Market Volume
Market Structure

Market Size
Annual Expenditure on Medical Services Provided to Russians Abroad

1.2

1.10

Billions of Dollars

1
0.8

0.98
0.86

0.6
0.4
0.2
0
2011

2012

2013

In 2013 Russians spent over 1.1 billion dollars on health care abroad.
Source: Insurance Marketing Report

Market Structure by Business Segment

VMI (voluntary
medical insurance)
0.8%
Travellers
insurance
20.0%

Direct appeal to the

hospital
20.0%

International health
insurance
0.4%

Medical tourism
58.8%

Medical tourism makes up the majority of all healthcare services provided

abroad (58,8% of market).
Source: Insurance Marketing Report

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

Main Locations & Purposes of Tourism

Sanatoriums and
rest houses
7.9%

Hiking
13.4%
Beach tourism
28.3%

In the Country
14.2%

Medical
tourism
16.5%

Sightseeing
holiday
19.7%

Medical tourism made up 16.5% of the tourist market in Russia.

Outbound Patient Flow Dynamics 2010-2013

350,000

300,000

300,000

Patients

250,000

215 000

200,000
150,000

145,000
120,000

100,000
50,000
0

2010

2011

2012

2013

Over 300,000 Russians traveled abroad for medical care in 2013.

Source: Patient Management

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

Medical Tourism Market and

Health Treatment Abroad
Motivation behind outbound medical
tourism
Market structure

Motivation of Outbound Medical Tourism

Determining factors for outbound medical tourism in Russia:

Russia

Combining
both
treatment
and rest
21.0%

Other Countries

Seeking
treatment
in CIS
countries to
save
money
7.0%
Cannot
obtain
treatment
in the
home
country
72.0%

Need
urgent
help,
cannot
obtain
treatment
in the
home
country
15.0%

Seeking
treatment
abroad to
save
money
10.0%

Going
abroad for
tech
medical
help
42.0%

Rely on a
higher
service
quality
33.0%

The lack of domestic high quality treatment in a wide range of cases is the
major reason for outbound medical tourism for Russians
Source: McKinsey and Company, www.treatment-abroad.ru, Medical & Health Tourism Magazine, 6

Local Opinion on Healthcare in Russia

How does the local population estimate national
health care system?

1.5%
Poor

54%

Sufficient
Good

28.5%

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.
Source: Medical & Health Tourism Magazine, 6

Determinants for Patient Choice of Healthcare Providers

The cost of treatment

1.0%
8.0%

Range of services

12.0%
35.0%

Distance and location convenience

12.0%

Recommendations of friends and

acquaintances
Doctor recommendations
32.0%

Advertising

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

Medical Tourism Market and

Health Treatment Abroad
Segment Volume:
User interest dynamics
Audience location

Segment Dynamics
Apr 2012 Mar 2013

+23%

180,000
160,000
Queries on treatment abroad

Apr 2013 Mar 2014

140,000
120,000
100,000
80,000
60,000
40,000

1,216
,562

1,500
,622

20,000
2014-03
2014-02
2014-01
2013-12
2013-11
2013-10
2013-09
2013-08
2013-07
2013-06
2013-05
2013-04
2013-03
2013-02
2013-01
2012-12
2012-11
2012-10
2012-09
2012-08
2012-07
2012-06
2012-05
2012-04

14

wordstat.yandex.ru. Apr2012 Mar2014

User Interest Dynamics: +17% in 2014

200,000

180,000

160,000

Queries

140,000

120,000

100,000

80,000

60,000

40,000

20,000

Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug

Apr2012-Mar2014 statistics

Forecast (Apr2014-Sep2015)

User interest is expected to grow by 17% by 2014.

15

Audience Location: Top Cities

28.05%

Moscow

5.30%

Search Volume for health care abroad

Saint-Petersburg

16

Ekaterinburg

2.48%

Kiev

2.43%

Nizhny Novgorod

2.10%

Rostov-on-don

1.94%

Novosibirsk

1.59%

Krasnoyarsk

1.59%

Ufa

1.56%

Irkutsk

1.23%

Krasnodar

1.19%

Perm

1.00%

Chelyabinsk

0.99%

Samara

0.98%

Minsk

0.92%

Saratov

0.89%

Kazan

0.83%

Voronezh

0.82%

Tyumen

0.78%

Vladivostok

0.72%

The majority of searches are made by

users from the largest Russian and
Ukrainian cities: Moscow, SaintPetersburg and Kiev (36%). In Russia,
searches from Moscow and SaintPetersburg make up 40%+ of the total
volume.

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).
17

Medical Tourism Market and

Health Treatment Abroad
User Interest in Destinations:
By regions / countries
Search patterns

Health Treatment Abroad: Destinations

6.8%

European countries

12.9%

Asian countries (China, India etc)

39.8%

Middle East
22.2%

CIS-countries
18.3%

Other countries

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%.

Health Treatment Abroad: Top Countries

46,817

Israel

44,118

Average number of queries per month

Germany

28,206

China

17,100

USA

13,486

Ukraine

10,462

Korea
Bulgaria

7,670

Czech Republic

7,510

Kazakhstan

5,797

India

5,665

Turkey

5,338

Hungary

5,056

Belarus

4,576

Japan

4,448

Abkhazia

4,360

User Interest Dynamics:Top-10 Destinations

60,000
Israel
50,000

Germany
China
Bulgaria

30,000

Czech
Republic
Hungary

20,000

Slovenia
India

10,000

Turkey

Mar

Feb

2014

Dec

Nov

Oct

Sep

Aug

Jul

Jun

May

Apr

Mar

Feb

2013

Dec

Nov

Oct

Sep

Aug

Jul

Jun

USA
May

2012

Queries

40,000

User Interest Dynamics:Top-10 Destinations

350,000

Apr 2012 - Mar 2013

Apr 2013 - Mar 2014

300,000

1.6

1.1

200,000

+69%

150,000

+60%
+35%

+33%

+31%
+27%

+14%

+4%

50,000

0.1

-3%

USA

Turkey

India

Slovenia

Hungary

Czech Republic

Bulgaria

China

-0.4

Germany

0.6

+38%

100,000

Israel

Queries

250,000

Search Patterns: Generic & Specific Queries

Generic queries

89%

79%

Turkey

47%

Abkhazia

India

58%

Japan

50%

Belarus

44%

Hungary

47%

Kazakhstan

75%

Czech Republic

51%

Bulgaria

46%

Korea

59%

USA

58%

Ukraine

82%

China

71%

Germany

65%

Israel

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

Queries on specific deseases

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.

Treatment in Israel: Top-15 Related Diseases

5,164

Oncology

906

Average number of queries per month

IVF (In Vitro Fertilization)

733

Psoriasis
Treatment of the spine
(hernia)

652

Dental implant treatment

643

Joint replacement surgery,

arthritis
Birth tourism and maternal
health, infertility
Treatment & care
for diabetes

799
696
437

Cerebral palsy

333

Hepatitis treatment

316

Epilepsia

265

Sclerosis

210

HIV

174

Allergy

171

Neurosurgery

167

Treatment in Germany: Top-15 Related Diseases

1,535

Average number of queries per month

Oncology
Treatment of the spine
(including hernia surgery)
Joint replacement surgery,
arthritis
Birth tourism and maternal
health, infertility

1,077
1,022
866
520

Dental implant treatment

481

Cerebral palsy

444

IVF (In Vitro Fertilization)

368

Epilepsia

287

Hepatitis treatment
Treatment & care
for diabetes
Orthopaedics
HIV

268
253
180

Sclerosis

153

Neurology

153

Yandex International Business Development

ussales@yandex-team.ru
+1 857.288.8762
uksales@yandex-team.ru
+44 020 3291 3306

Thank you!