Nepal's healthcare industry currently stands at a crossroads. While facing significant infrastructure challenges, the country has immense opportunities, particularly in medical tourism — a sector that has worked wonders in various countries.

Healthcare Landscape in Nepal

Nepal has made significant progress in healthcare in recent years. Some of them are discussed below:

Health Indicators and Progress:  In recent years, Nepal has made substantial improvements in health indicators. According to Nepal Health Fact Sheets, 2023, life expectancy rose to 70.5 years in 2022, up from 70 in 2021, and the under-five mortality rate fell to 29 per 1,000 live births in 2023 from 34 in 2021. However, disparities persist, particularly in rural areas, where access to quality care remains limited.

Infrastructure and Expenditure:  Healthcare spending accounted for around 4% of GDP in 2019, with public health expenditure rising from $10 per capita in 2001 to $58 in 2020, growing at an annual rate of 10%. This figure is expected to grow as Nepal aims to achieve Universal Health Coverage (UHC) by 2030. Despite the progress, Nepal still lags behind regional counterparts, as India, for example, spends 3.5% of GDP on healthcare with more developed infrastructure.

Human Resource Challenges:  A shortage of skilled professionals remains one of the pressing issues for the country. Nepal has just 0.7 doctors per 1,000 people — well below the World Health Organization’s recommended 1 doctor per 1,000. According to a study, nurses and paramedics constituted only 18.7% of the healthcare workforce in 2021. This is mainly due to limited training opportunities, high migration rates among healthcare workers and suboptimal working conditions.

Medical Tourism Potentials

Nepal has a potential to become a major medical tourism destination in the region due to following factors:

Cost Factor:  One of Nepal’s most compelling advantages is its cost-effective healthcare services. Many medical procedures here can cost up to 70% less than in western countries. For example, a heart bypass surgery that costs around $100,000 in the United States can be performed for roughly $10,000 in Nepal. This affordability positions Nepal as an attractive destination for international patients seeking quality healthcare at lower prices.

Healthcare Quality: Nepal has several private hospitals that are accredited by international bodies. They offer high-quality medical services. According to the Department of Health Services, Nepal had 14,313 registered health facilities by December 2023, including public hospitals and private clinics that meet global healthcare standards.

Unique Offerings:  In addition to conventional medical treatments, Nepal offers alternative therapies like Ayurveda and yoga which attract health tourists seeking holistic experiences. Studies show that 30% of health tourists are interested in wellness services along with their medical treatments.

Learning from Successful Medical Tourism Models 

A study of leading medical tourism destinations across the world can provide valuable insights for Nepal. Some of these destinations include:

Thailand-A Leading Medical Tourism Hub: Thailand attracts millions of international patients each year thanks to its well-developed healthcare infrastructure and quality service. In 2019 alone, Thailand welcomed over 3 million medical tourists with a revenue of $4 billion. Its success stems from comprehensive packages that combine medical treatment with leisure activities, enhancing patient experience and satisfaction.

India-A Hub of Diverse Healthcare Offerings: India’s medical tourism market, valued at $6 billion in 2022, offers different services ranging from advanced surgeries and alternative treatments for patients from around the world. The value is expected to reach $13 billion by 2026.

Costa Rica-A Wellness Retreat: Costa Rica combines high-quality healthcare with eco-tourism. In recent years, the country has seen a steady increase in health tourists seeking both treatment and relaxation—an approach that enhances overall patient experience.

Opportunities for Growth

Nepal can take several strategic steps to capitalise on its strengths and emulate successful models from other countries. Some of them are outlined below:

Integrated Health Packages: Nepal can create comprehensive health packages that integrate medical treatments with wellness activities like yoga retreats or cultural tours. Such packages could extend patient stays by 3-5 days thereby benefiting local economies.

Government Support and Policy Framework: Recognising the potential of medical tourism, Nepal has taken necessary steps to support the sector through policies aimed at enhancing healthcare infrastructure and attracting foreign investment. Continued government commitment is crucial to establish Nepal as a strong player in medical tourism.

Targeted Marketing Strategies: To attract international patients, Nepal needs strong marketing strategies that highlight its unique offerings, affordable care and rich cultural experiences. Collaborating with travel agencies to create health-specific packages, launching digital campaigns and participating in health tourism exhibitions could effectively position Nepal on the global stage.

Conclusion: An Optimistic Future

Despite challenges, Nepal holds substantial potential in the global medical tourism arena. By leveraging its unique strengths — affordability, quality care and cultural richness — Nepal can become a favoured destination for health tourists worldwide. For this to happen, government bodies must enhance infrastructure, private hospitals should uphold high standards and strategic marketing must showcase Nepal’s unique advantages. With collaboration among government, healthcare providers and businesses, Nepal can transform healthcare challenges into avenues for growth. By exploiting its health tourism potentials, Nepal can not only enhance its economy but also improve the well-being of its citizens while establishing itself as a premier health tourism destination.

(Gadtaula is an analyst at Business Brainz, a global business research and insight firm operating from Nepal.)

(This opinion article was  originally published in the   November 2024   issues of New Business age Magazine.)