Vaidam is there to empower medical travellers in making an informed decision about the

selection of [a] health care solution and to provide a seamless experience through[out] their

patient journey.

Pankaj Chandna, co-founder, Vaidam Health

Ever since Pankaj Chandna, the co-founder of online medical-value travel (MVT) facilitator Vaidam
Health

Private Limited (Vaidam),1 had returned from his trip to Fiji, there had been a lot on his mind. The
trip had

been aimed at business expansion. Now, Pankaj and his old classmate and co-founder, Manish
Chandra,

were flipping through the market data he had collected during meetings with health care
professionals,

corporations, insurers, and representatives of ministries of health during this month-long tour in May
2018.

Their intention was to create a presence in the offline market and to identify alternate business
channels to

attract more patients from some of the key source countries for MVT to India.

Since its inception in January 2016, Vaidam had hosted overseas patients who travelled to India for
medical

treatment. It had partnered with over 100 world-class health care facilities across the major cities in
the

country. In addition to hospitals, the company worked closely with over 1,000 medical practitioners

(surgeons and specialists) who were renowned for highly advanced allopathic treatments such as
organ

transplant, cardiology, and oncology. To efficiently address medical travellers’ needs during their
stays, the

company had also created an ecosystem of service providers offering accommodation, ground

transportation, language translation, and domestic services. So far, patients from more than 50
countries

(primarily Australia, countries in Africa and the Middle East, and in neighbouring Asian nations) had

received satisfactory treatment using Vaidam’s network. It had generated business worth over
US$275,0002

for the associated hospitals and medical practitioners during the first half of financial year 2017–18.

As one of the pioneers in setting up web-based MVT services in India, Vaidam was able to gain the
trust
of overseas patients by offering personalized and customized care with complete transparency. From
a

business environment perspective, the Indian health care industry, backed by the supportive policies
of the

government of India (GOI), was emerging as a global destination for medical tourism. Given the
improved

1 MVT facilitators were companies that worked as intermediaries between medical travellers and
health care service providers,

creating value for both parties.

2 All dollar amounts are in U.S. dollars unless otherwise stated.

attractiveness of MVT, the founders of Vaidam realized that they would face tough competition in

attempting to further leverage this massive unaddressed business opportunity. Although they had

successfully built the company using personal finances and had come this far, they now faced a
tougher

challenge. As an MVT facilitator, Vaidam needed to determine how it could continuously offer value
to

medical travellers so that they would continue to choose Vaidam to plan their treatment and travel
to India.

INDIA AS AN EMERGING MVT DESTINATION

With globalization, travelling abroad for medical interventions (known as MVT, medical tourism, or
health

travel) had become a widespread phenomenon. These medical interventions ranged from advanced
medical

treatments and surgeries (e.g., curative treatments such as cardiac surgery or knee replacement) to
wellness

or rejuvenation treatments (e.g., cosmetic surgery and spa services) and alternative medicine (e.g.,

Ayurveda and naturopathy).3 The last two decades had witnessed a shift in the MVT destinations
preferred

by travellers from the developed markets of the United States and Western Europe, who now
travelled to

Asian countries such as Malaysia, Thailand, Singapore, South Korea, and India.4 Rising health care
costs

and long waiting times for treatment in developed countries combined with the availability of heavily

subsidized, world-class medical care in Asian countries were the key reasons for this shift.

India was one of the key destinations for MVT and witnessed a 22–25 per cent growth in the arrival
of
medical tourists in 2017.5 The MVT industry was expected to reach $9 billion by 2020. This was
evident

from the steep rise in the number of medical visas the country had issued for both initial medical
treatments

and follow-up visits.6 The majority of these tourists were from South Asian Association for Regional

Cooperation nations such as Bangladesh, Afghanistan, and the Maldives; Commonwealth of

Independent

States countries such as Russia, Kazakhstan, and Moldova; African countries such as South Africa,
Kenya,

and Nigeria; and Middle Eastern countries such as Iran, Turkey, and Egypt. Patients from these
regions

were primarily travelling for advanced curative care for cardiac and orthopaedic treatments.
However,

despite large numbers of foreign tourists arriving from the United States, Europe, and other
developed

regions, the share of medical tourists from these regions had been limited so far. There were
numerous

environmental considerations that made India a preferred choice for medical tourists.

Brand India

India was one of the oldest civilizations in the world, with a rich cultural heritage. Historically, the
country

had been the centre of alternative healing therapies such as Ayurveda, yoga, and meditation,
attracting

travellers globally and offering health and spiritual benefits. Economically, the country was the
seventh largest

economy, with a gross domestic product (GDP) growth of 5.4 per cent in 2017. With vast cultural and
natural

resources and price competitiveness, India was ranked 40th (gaining 12 places from 2016) among
136

countries in the Travel and Tourism Competitiveness Report for the year 2017.7 Further, despite the

phenomenal language diversity in the country, English was the official language and was spoken
widely by

the people. The country’s diversity also contributed to the extensive variety of international and
national

cuisines offered in the country. Supportive visa policies, such as visa on arrival and e-visas, were
indicative
of the country’s openness for international travellers. India’s booming information and
communication

technology industry had contributed to increased Internet and mobile penetration, which facilitated

distribution of information for foreign travellers. Nevertheless, security risks in some border regions
and cases

of crime against women in the past had affected the country’s global image as a tourist destination.
Having

said that, the GOI had been taking concrete steps to make India stand out in the field of medical
tourism.

Health Care Delivery Sector in India

Health care delivery was one of the largest sectors in India; it was growing at a compound annual
growth

rate of 16.5 per cent and was expected to reach $280 billion by 2020 (up from $160 billion in 2017).8
This

sector comprised public and private health care delivery systems. The public health care system was
limited

to primary health centres staffed by medical officers and some paramedical staff in rural areas,
secondary

district hospitals and community health centres, and tertiary care centres and advanced medical
research

institutes in cities. Total health care spending represented 5 per cent of the country’s GDP; out of
this, the

amount spent on the public health care system was still low (1.2 per cent in 2017) compared to that
in many

emerging economies. However, the GOI’s National Health Policy had set a target to increase this
share to

2.5 per cent by 2025.9

Private health care players, who accounted for 75 percent of the country’s total health care
expenditure,

were the vibrant force behind the growth of the Indian health care industry. These players had made
huge

investments in setting up chains of world-class hospitals and diagnostic centres in metros and Tier 1
cities

including New Delhi, Chennai, Mumbai, and Hyderabad. Some of the private hospital chains in India,

which were renowned for tertiary and quaternary care facilities, were Apollo Hospitals Enterprise
Limited
(with a capacity of 9,215 beds), Fortis Health Care Limited (10,000 beds), Max Health Care (2,016
beds),

Manipal Hospitals Group (4,900 beds), and Narayana Health (7,452 beds).10 The vision of these
hospitals

was to offer high standards of medical care along with clinical research and training. According to a
recent

PWC report, in addition to an influx of private investors, this sector had been witnessing a significant

increase in foreign direct investment over the past few years.11 “Access to capital had been the
major

roadblock for the growth of [the] Indian health care sector. Both the public and private sectors need
to join

hands to build the health care infrastructure in the country,” Manish said.

Curative care treatments involving advanced medical procedures for cardiology, orthopaedics,
transplants,

and ophthalmology were available in India at significant cost differentials and without any waiting
time.

According to statistics released by the American Marketing Association, the cost of a knee
replacement

surgery was $40,000 in the United States, $10,000 in Thailand, $13,000 in Singapore, and $8,500 in
India

(see Exhibit 1). The total cost of treatment, including health services, accommodation, and food
services,

was estimated to be 70–75 per cent less in India compared to in many Western and South Asian
countries

According to a 2013 Harvard Business Review study, keys to making the global standards of Indian
health

care available at a competitive price were coordinated medical planning, economizing the use of
expensive

equipment and expertise, and minimizing operational costs.13 “The Indian surgeons operate far
more cases

than their counterparts in the United Kingdom or the United States and thus are more experienced.
They

give excellent outcomes with less resources, and that is their USP [unique selling point],” Manish
noted.

Beyond allopathic medicine, the Indian health care sector enjoyed credibility in a host of traditional
healing
methods or alternative medicines based on Ayurveda, yoga and naturopathy, and homoeopathy
(AYUSH).

With the establishment of the Ministry of AYUSH in 2014, the GOI was working to develop and
promote

these traditional medical and health care systems to attract foreign patients.

The focus on accreditation of Indian health care facilities played a key role in building patients’
confidence

in the quality of health care outcomes. “The patient’s trust towards a certain hospital is automatically

enhanced when they see that it is well accredited,” Manish explained. Established in 2006, the
National

Accreditation Board for Hospitals and Health Care Providers (NABH), a constituent body of the
Quality

Council of India, established comprehensive health care standards for all hospital activities—right
from a

patient’s registration to their discharge. These standards were equivalent to international standards

established by the Joint Commission International (JCI),

14 the Australian Council on Health care Standards

(ACHS),

15 and Accreditation Canada (AC).

16 The NABH standards were recognized by the International

Society for Quality in Health care (ISQua), an independent not-for-profit organization promoting the
quality

and safety of health care systems worldwide. As of March 2017, 520 hospitals in India were NABH

accredited, and another 661 were undergoing the accreditation process.17 Further, to achieve global

acceptance of their medical procedures, Indian health care service providers were aggressively
working to

meet the requirements of JCI accreditation standards. As of March 2018, 37 Indian medical and
health care

centres were JCI accredited.18

Policy Support

To promote India as a medical-tourist-friendly destination across the globe, the GOI had initiated
many

policies and schemes over the past few years. One such initiative was the liberalization of the visa
regime
through the introduction of a new subcategory of electronic visa—an e-medical visa—for 161
countries. Other

rules relating to visa fees, duration of stay, frequency of visits, and police reporting of patients were
also

liberalized to ease the experience of medical travellers.19 The Ministry of Tourism had set up the
National

Medical and Wellness Tourism Board to address all issues related to medical tourism.20 The Ministry
of

Tourism, the Ministry of Health and Family Welfare, and the Ministry of Commerce carried out
promotional

initiatives to endorse the Indian health care industry on international platforms such as global-travel
trade

: shows. “Realizing the potential of [the] MVT industry to generate foreign exchange (Forex) earnings,
the

government has been working to reduce the challenges faced by medical travellers in treatment cost

estimation, visa documentation, hospital admission, and recovery assistance,” Pankaj explained.

VAIDAM HEALTH

Based out of Gurgaon, India, Vaidam Health was certified according to ISO 9001 and 27001 standards

(international standards for assuring customer satisfaction and information risk reduction)21 as a
web-based

MVT facilitator. It offered treatment and travel assistance services to international patients travelling
to

India for treatment. The venture was officially launched in January 2016 after receiving funds from a

Singapore-based venture capital firm. The brainchild of Pankaj and Manish, both alumni of the Indian

Institute of Management in Lucknow, Vaidam was the outcome of in-depth market research of the
health

care sector. Manish explained:

The term Vaidam is derived from the Sanskrit word vaidya, which means “doctor.” It is usual that,

when it comes to travelling abroad for advanced treatments, people always have apprehensions

around the selection of host country, hospitals, surgeons, and estimated cost of treatment. They do

consult their relatives, friends, [and] family doctors to retrieve such information. They use [the]

Internet to find and validate information about the suitability of medical and health procedures.

However, people could not find any credible source of answer [to] all their queries. No one in the

field of health care was providing an easy solution for this problem. We decided to establish a
business to fill this unmet customer need in the health care sector.

Before establishing Vaidam, both founders had worked in the development of health-technology
platforms.

Pankaj had closely worked with public and private health institutions such as Lybrate Inc., an online
doctor-

consultation platform (as vice-president of Sales), and Manish had 15 years’ experience in managing

customer experience on technology platforms such as Shopclues.com, one of India’s leading e-

retailers,

and the Indian Railway Catering and Tourism Corporation’s massive railway booking platform

IRCTC.co.in. The duo was careful to form a team by hiring people with diverse skills, such as medical

consultants, operations managers, logistics experts, language translators, and digital marketing

professionals. “We are a team of 20. All the members are highly efficient and carry experience in
their

respective domain. Having the right people at the right place has enabled us to improve the patient

experience during their travel,” Pankaj expressed.

For patients, Vaidam played several roles: it was an educator, providing verified information on
treatment

options, accreditations, affiliations of hospitals and specialists, and on other travel considerations
such as

security and culture; it was an organizer, facilitating medical history compilation, scheduling
appointments,

and managing travel logistics; it acted as a bridge, providing a 24/7 point of contact in the host
country to

deal with local issues such as language barriers; and it functioned as an advocate, acting as the
representative

of the patient in the host country. For the health care industry in host nations, facilitators worked to
boost

the countries’ image to generate a source of foreign-exchange earnings.22

In India, NABH was responsible for evaluating the reliability and accountability of MVT facilitators
using

defined empanelment criteria.23 Enticed by the GOI’s supportive policies and the growing number of

foreign tourists entering the country, many players had entered the space of web-based MVT
facilitation

service. Some of the discovery platforms were MediConnect India, Tour2india4health Consultants
Pvt.

Ltd., Indicure Health Tours, and Zoylo Digihealth Pvt. Ltd. Manish said,
What makes us distinct from the other health care discovery platforms is we go beyond the norm

in assisting the travellers with consultations, travel plans, and everything amid, till the time they

fly back, post check-ups or surgeries. We carefully select the hospitals, doctors, accommodation,

and other services that we market to our patients on our platform.

In addition to MVT facilitators, independent hotel groups and travel agencies such as Travelite India,
which

offered travel packages for Ayurveda and yoga, had also ventured into this service, seeing it as an
alternate

business opportunity. For hotel groups, MVT was an additional service line for connecting
international

patients with the health care institutions they were associated with. Travel agencies utilized their
logistics

knowledge to offer travel packages for clinical programs.

Business Model

Vaidam targeted various categories of international medical travellers—uninsured, underinsured, or

fully

insured—through different business channels.

Individual Patients

The largest segment of medical travellers to India was uninsured individual patients, who paid for
their

treatments with their own cash and thus looked for low-cost destinations to make significant savings.
“At

this point, 80 per cent of our business is generated through inquires coming directly from the
patients on

our website or through referrals from our past clients,” Pankaj explained. The lack of public or
insurance

funding for advanced medical procedures in their home countries (e.g., African nations such as Kenya
and

Nigeria and neighbouring Asian countries such as Bangladesh, Afghanistan, and the Maldives) was
driving

these patients to travel to destinations like India for quality health care at affordable prices. These
patients

generally made a trade-off between perceived health care quality and cost of treatment, proximity,
and

culture while selecting the health care destination. These patients primarily sought medical
treatment for
dentistry, cosmetic surgery, and in-vitro fertilization.

Insured Patients

Insurance companies that offered self-funded health care benefits collaborated with Vaidam to add
world-

class hospitals in India to their network and worked out packages for various medical procedures.
Vaidam’s

team offered to conduct site visits to hospitals, hotels, and other facilities on behalf of the insurance

companies to understand the true conditions of each destination. Having established strong
relationships

with over 100 hospital affiliates, the team facilitated preferential treatment for patients and resolved
issues

that required immediate attention during their patients’ stay in the country. “At present, we are
working

with three insurance companies abroad and [are] in discussion with many others for the
empanelment of

Indian medical centres and hospitals into their network,” Pankaj explained.

Government-Funded Patients

This segment included international patients travelling from countries where their government
funded

treatments abroad for its citizens, due either to lack of domestic expertise and facilities to handle
advanced

medical treatments or to lengthy waiting times. The Vaidam team had collaborated with ministries
of health

in two countries to assist the patients referred by the ministries. Manish explained:

Currently we are receiving patients referred through ministries of small-population countries such

as Fiji, which have well-developed health care systems, but the range of health care facilities is

limited. On the other hand, ministries of countries like Ireland are funding treatment abroad due to

long waiting times.

These patients sought complicated treatments for hip or knee replacement, cataract surgery, or
other

surgeries.

Among the first few to enter the niche of online MVT facilitation, the Vaidam team had focused on
building

a reputation of trust, care, and expertise during its initial years. “We have adopted a ‘patient-centric’
business model, not just in facilitating the medical consultation and care but also in every process
associated

with their medical travel, including air travel, ground transportation, and accommodation,” Pankaj
said.

Vaidam had created a strong network of accredited hospitals and boutique clinics. The company
monetized

the marketing of services offered by these health care institutions on its website, and these
institutions paid

referral fees for each patient coming through the Vaidam route. This fee was mostly a commission

percentage based on the package price of the medical procedure. However, this fee was sometimes
charged

from the hospitals on a per-patient basis regardless of the cost of the procedure. “Our business
model is

such that we don’t charge from our patients. Only in special cases, when a patient requires a second
opinion

or needs additional services such as a full-time attendant, we charge a concierge fee,” Pankaj
explained.

Apart from charging referral fees from medical service providers, the company also received
commissions

from the partners offering lodging, ground transportation, and tour services. One of these was OYO
Rooms,

a budget hotel network in India. “Our partnership with OYO Rooms, one of the largest hospitality

companies in the country, has allowed us to extend standardized and affordable accommodation to
our

travellers. In lieu, we earn commission whenever a user makes an OYO hotel booking through
Vaidam’s

tracking link,” Manish explained.

VAIDAM’S VALUE CHAIN

Vaidam’s value chain was divided into three stages that corresponded to the series of activities
involved in

MVT: pre-procedure, procedure, and post-procedure.

Pre-procedure Stage

At this stage, individual patient queries received through different business channels (online,
referrals, and

insurance companies) were attended by the patient relation team at Vaidam, who facilitated the
patient’s
choice of hospital, doctor, and medical procedure. This team, composed of health care professionals,
helped

in compiling patients’ medical reports, which were shared with the empanelled hospitals and
doctors. The

team offered at least three personalized treatment plan options for each query, based on each
patient’s

treatment budget. Pankaj explained:

The cost of treatment varies widely across hospitals and cities. The average quote for a single knee

replacement surgery is $5,000. However, the budget of one of our patients from Nigeria was

$3,500. Our case manager researched and negotiated the price with the empanelled hospitals and

eventually found a quality treatment within the patient’s budget.

Live consultations with doctors and sharing the experiences of previous patients was also facilitated
by the team.

The team also assisted the patients in processing their visas and planning their air travel. As Pankaj
explained,

The anxiety of a patient travelling abroad for treatment is usually beyond finding a good hospital

and doctor. Our team actively helps the patients in case assessment, treatment cost estimation,
travel

planning, and hospitality. The prices quoted by the hospitals are discounted for patients coming

through our route.

Procedure Stage

This stage began as soon as the patient landed at the destination. The company assigned a dedicated
patient

case manager, who acted as a point of contact while the patient stayed in the country. Besides the
case

management system, the team also created customer relationship management (CRM) software to
facilitate

individual patient interactions and create personalized relationships. Upon each patient’s arrival to
the

destination, the concierge team managed the patient pickup, discounted accommodation, currency

exchange, language interpretation, food options, and other local issues. Priority appointments with
the

doctor and admission to the chosen hospital were also arranged. “Our concierge team ensures that
the

patient is taken care of from the moment of arrival to departure after checkup or surgery,” Manish
said.
Post-procedure Stage

This stage included post-operative care and follow-ups. Once the procedure was over, the patient
was

assisted with post-treatment rehabilitation or physiotherapy and follow-ups with the surgeon. An
internal

team of doctors also helped resolve patients’ post-operative concerns. In case of any billing issues
with the

hospital, the Vaidam team escalated the problem on the patient’s behalf for quick resolution. After
post-

operative care, once the patient had recovered, the concierge team assisted with shopping and
planning

leisure tours. The team cautiously worked on improving their services based on patients’ feedback
received

after they had returned to their home countries. “It’s the customer experience–focused mindset of
[the]

Vaidam team that has made it popular among the international medical travellers,” Pankaj explained.

SERVICE FEATURES

Cost Estimator

Along with curated profiles of hospitals, doctors, and patient testimonials to facilitate informed
choices

regarding health care destinations, the technology team had also created a self-help tool—a cost
estimator

for medical travellers. This tool enabled patients to get a total cost estimate that included treatment
cost,

airfare, accommodation, visa processing, food, ground transportation, and other miscellaneous
costs, based

on the specific hospital, doctor, duration of stay, number of attendants, and other preferences of the
patient.

“We understand that [patients do] not want to experience an information overload by browsing
hundreds

of medical procedures available. With the cost estimator, we provide answers to patients’ queries
related to

treatment cost,” Manish said.

Customer Relationship Management (CRM) Solution

Managing patient interactions before and after the medical procedure was the key to a successful
relationship between facilitators and their patients. Realizing this, the technology team at Vaidam
developed

: a CRM solution. Not only did this solution allow the team to consolidate the patient leads generated
through

different business channels, it also helped it to manage real-time interactions with patients and to
secure

patient information. “Our CRM tool is designed to bridge the inherent physical distance between the
team

and the patients,” Manish said.

Quality and Compliance

As a leading web-based MVT facilitator, Vaidam was committed to maintaining the highest standards
of

service quality and information security. The patient management protocols for treatment, travel,
and post-

operative care were compliant with ISO 9001:2008 quality-management requirements for ensuring
patient

satisfaction. Stringent data security practices were in place to ensure the protection of patients’
personal

and health information, in line with the ISO 27001 specification. According to Pankaj, “The
requirement

of these certifications strengthens our commitment towards the customer service.”

THE ROAD AHEAD

Since its official launch in January 2016, Vaidam had grown to become a trusted name in the Indian
MVT

industry. In the last two years, the team had successfully built a strong ecosystem to take care of
every need

of international medical travellers, before and after treatment. Pankaj said,

We have a network of over 100 hospitals, and we are looking forward to entering into more

partnerships with health care institutions, insurance providers, and health ministries of countries

from where the patients travel to India. This will allow us to penetrate deeper into the industry and

offer more value to our clients.

The team had developed an online platform fed by effectively curated content available in multiple

languages for international travellers, an efficient on-ground team to aid the patients during their
stay, and

self-help technology tools to improve customer experience.

The team wanted to expand the partnership network both nationally and internationally in the
coming years.

So far, the team had worked on promoting and facilitating MVT services in its own country. Now,
building

its recognized brand in the MVT market, the company wanted to set up a network of medical
providers in

countries that were popular for their health care infrastructure. Pankaj mentioned:

We want to refer patients to global destinations in the future, especially to countries like Thailand,

Turkey, Dubai, Malaysia, and Singapore, which are ranked very highly in the [hierarchy] of

countries receiving medical travellers. Our alliance team is working for opening offices at these

overseas locations.

The company invested in marketing its services through the local newspapers and radio channels to
create

brand awareness in these overseas destinations. Apart from investing in diverse marketing channels,
the

content team at Vaidam had worked to translate content into seven different languages, to increase
access

for patients. As Pankaj said,

Vaidam aims to help patients from any country travelling to any country for treatment as per their

preference for health care cost, quality, and social alignment. We are working towards achieving our

aim. Now it is to be seen whether we are able [to] continuously create value for the medical
travellers.

This case revolves around Vaidam Health, an online medical-value travel

(MVT) facilitator, and its founders' quest to navigate the burgeoning
medical tourism industry in India. Here's a summary and analysis:

Summary:

 Vaidam Health: Founded in 2016, Vaidam is an MVT facilitator

connecting international patients with healthcare providers in India.
  Industry Overview: Medical tourism has seen a significant rise, with
India emerging as a prominent destination due to cost-effective,
quality healthcare.
 Vaidam's Role: It partners with hospitals and practitioners, offering a
range of services from medical treatment to travel logistics.
 Business Model: Vaidam caters to uninsured, insured, and
government-funded patients, earning via referral fees from
healthcare providers and commissions from partner services.
 Value Chain: It manages patient journeys from pre-procedure
(planning, visa processing) to post-procedure (rehabilitation, follow-
ups).

Analysis:

 Market Potential: The Indian healthcare sector is poised for growth,

with favorable government policies and cost differentials attracting
global patients.
 Competitive Landscape: Vaidam faces competition from other MVT
facilitators and travel agencies venturing into this space.
 Service Differentiation: Vaidam stands out by offering personalized
care, an extensive network of hospitals, and post-operative support.
 Technological Edge: Its cost estimator tool and CRM solution
enhance customer experience and streamline operations.
 Expansion Strategy: Vaidam aims to expand globally, partnering
with healthcare providers in countries known for medical tourism.

Key Issues and Challenges:

1. Competition: Increasing competition demands Vaidam to

continuously innovate and differentiate its services.
2. Global Expansion: Venturing into new markets involves
understanding diverse healthcare systems and building partnerships.
3. Quality Assurance: Maintaining high-quality services and
partnerships is crucial for sustaining patient trust and satisfaction.
4. Regulatory Compliance: Adhering to international standards and
healthcare regulations across various countries poses challenges.

Conclusion: Vaidam Health has capitalized on India's potential as a medical

tourism hub but faces intensified competition and challenges in global
expansion. Its success hinges on continued service differentiation,
technological innovation, maintaining quality standards, and strategic
partnerships to cater to the evolving needs of international medical
travelers.
The case centers around Vaidam Health, an online medical-value travel
(MVT) facilitator based in India, and its efforts to establish itself in the
growing medical tourism industry. Here's a detailed summary and analysis:

Overview: Vaidam Health, founded in 2016, specializes in connecting

international patients with healthcare facilities in India. It operates as an
intermediary, facilitating various aspects of medical travel, including
treatment planning, logistics, and post-operative care. The company
collaborates with over 100 healthcare facilities and 1,000 medical
practitioners across India.

Industry Context: The global phenomenon of medical tourism has seen a

shift towards countries like India due to affordable yet quality healthcare
services. India, with its advanced medical treatments, including organ
transplants, cardiology, and oncology, has become an attractive destination
for international patients.

Vaidam's Role and Services: Vaidam's business model caters to different

categories of patients: uninsured, insured, and government-funded. It
provides personalized assistance, from compiling medical reports,
scheduling appointments, to assisting with visa processing, travel logistics,
and post-treatment care. Vaidam has a three-stage value chain: pre-
procedure (planning), procedure (treatment), and post-procedure (follow-
ups and rehabilitation).

Market Position and Competitive Edge: The company aims to

differentiate itself by offering comprehensive services, a robust network of
hospitals and doctors, and personalized support throughout the patient
journey. Its use of technology, including a cost estimator tool and a CRM
solution, enhances customer experience and streamlines operations.

Challenges and Opportunities: Vaidam faces challenges such as rising

competition from other MVT facilitators and travel agencies entering the
healthcare sector. Additionally, expanding globally requires understanding
diverse healthcare systems, building partnerships, and adhering to various
regulations and quality standards.

Expansion Strategy: Despite these challenges, Vaidam intends to expand

its presence globally by partnering with healthcare providers in countries
renowned for medical tourism. The company plans to create brand
awareness through marketing initiatives and by offering content in multiple
languages.

Conclusion: Vaidam Health has capitalized on India's emerging

prominence in medical tourism but faces competitive challenges and
complexities in global expansion. Its success hinges on continuous
innovation, maintaining high-quality services, regulatory compliance, and
strategic partnerships to cater to the evolving needs of international
medical travelers.

1. Analyze the external environment for India's MVT facilitation services sector. Based on the
analysis, could you make recommendations for Vaidam to invest in alternate business
channels for attracting international medical travelers? The following frameworks could be
used.
a. PEST analysis of the host country
b. Five Force Analysis of Indian Health Care Sector.

2. What are facilitation services? What is the role of MVT facilitation services in the health care
sector?

3. Diagnose the strategic capability of Vaidam based on the value offered to MVT patients.
Based on the evaluation, could you recommend improvements?

1. Analysis of the External Environment:

a. PEST Analysis of India's MVT Facilitation Services Sector:

Political: The Indian government has been supportive of medical tourism,

implementing policies to ease visa restrictions for medical travelers. Initiatives by the
Ministry of Tourism and the Ministry of Health to promote the industry are notable.
Economic: India's healthcare industry has been growing significantly, offering
advanced treatments at competitive prices. The rising healthcare expenditure and
GDP growth contribute to its attractiveness as an MVT destination.

Social: India's rich cultural heritage, diversity, and alternative healing methods like
Ayurveda attract travelers seeking holistic treatments. Language diversity and the
widespread use of English benefit international patients.

Technological: The country's booming information and communication technology

industry aids in disseminating information about healthcare facilities to global
travelers.

b. Five Forces Analysis of Indian Healthcare Sector:

Threat of New Entrants: The healthcare sector in India has seen a surge in private
players, signifying increased competition. However, establishing trust and credibility
as an MVT facilitator demands expertise and relationships, posing a barrier to new
entrants.

Threat of Substitutes: While India offers quality healthcare at competitive prices, other
countries like Thailand, Malaysia, and Singapore also compete for medical tourists.
The threat of these countries as substitutes is moderate.

Supplier Power: Hospitals and medical practitioners hold significant power due to
their expertise. However, MVT facilitators' ability to bring in a stream of international
patients could balance this power.

Buyer Power: International patients have varied preferences and choices. MVT
facilitators that offer comprehensive services and choice options can wield more
power.

Competitive Rivalry: The healthcare sector in India is competitive, with several players
offering similar services. Differentiation, quality of service, and partnerships become
critical for standing out.

Recommendations for Vaidam: Based on this analysis, Vaidam could invest in:

 Strengthening partnerships with hospitals and practitioners to maintain a

competitive edge.
 Focus on technology for better patient experiences.
 Consider exploring tie-ups or alliances with healthcare providers in other
Asian countries for diversification.
2. Facilitation Services and Role in Healthcare Sector:

Facilitation services in the healthcare sector involve assisting patients in various

aspects of medical travel, including treatment planning, logistics, visa processing, and
post-operative care. In the case of Vaidam, these services cover pre-procedure,
procedure, and post-procedure stages.

The role of MVT facilitation services is pivotal. They act as intermediaries, bridging
the gap between international patients and healthcare providers. They offer
convenience, guidance, and support to patients navigating a foreign healthcare
system. Facilitators like Vaidam enhance patient experience, increase accessibility to
quality healthcare, and address the unique needs of medical travelers.

3. Strategic Capability of Vaidam and Recommendations for Improvement:

Vaidam exhibits a strong strategic capability by offering a comprehensive suite of

services across the patient journey, leveraging technology, and building a robust
network of hospitals and service providers.

Recommendations for improvement:

 Enhance personalization and customization for diverse patient needs and

preferences.
 Invest further in technological tools to streamline operations and improve user
experience.
 Strengthen global partnerships beyond India to diversify the destination
choices for patients.

Vaidam's strategic capability is strong, but continuous improvements are essential to

sustain competitiveness and meet the evolving needs of international medical
travelers.