IN recent years a new trend has been seen in developing countries. This trend is so new that it doesn’t even have an official name. I call it “nursing-care tourism”. But what is this new trend all about?
The costs of care in developed countries are increasing, while the quality of it is decreasing. Some senior citizens (or their children) are now looking at other countries where the cost of care is lower and the staff-to-patient ratio is higher. The Philippines is one of these countries, and this column will give you a background on the possibility of the country to become a nursing-care destination.
Let us first look at the situation in developed countries. I will use Germany as an example. About 2.3 million people in Germany are in need of care. Of that number, 1.6 million receive nursing care at home, while the remaining 700,000 are living in stationary-care units. These are not called “homes for the aged” or “aged care facilities”, because some younger people are also residing there for various reasons (accident, stroke or disability).
Residing in a stationary-care facility is expensive; it costs about €3,500 a month. Such an expense can eat up one’s savings very fast. On average, every resident pays about €37,000 out of his or her own pocket until he or she dies. More than 400,000 residents in nursing homes in Germany are living off social insurance. They have worked for so long and live long, and toward the end of their lives they become petitioners, needing to ask the state for money. Such care also eats up the savings of their children, as social insurance will only pay once the children cannot contribute anymore.
This is the main reason some families are starting to look for alternatives to nursing-care services. In Europe they look mainly at Eastern European countries, such as Poland and Hungary, as the monthly cost for a stationary-care facility there is only about €1800, half of the cost they pay in Germany. In some rare cases, facilities in Thailand and even the Philippines are being preferred by Europeans, but this is still the exception.
On the other hand, citizens of the United States are looking at Latin American countries, such as Panama and Mexico. The pressure on American seniors is a lot higher, as the cost of care in the US is higher than in Europe, and social security contributes less. Also, I have observed individual cases wherein US citizens have been placed in facilities in Southeast Asia.
What is their reason for looking at the other side of the Pacific Ocean? Climate plays a big role. Many people have dreamed of retiring in a country with a tropical climate, and very often warm weather is good for their general health. (However, summertime can be really a challenge for the cardiovascular system). Furthermore, previous tourism experience and fluency in English are significant considerations for a person in preferring one nursing-care destination over another, and in this regard the Philippines has an advantage. Many people have been “touched” by Filipino nurses before in Europe or the US, and are convinced by their ability to really care and the “human touch” that they—and the country—have. For those with dementia, a touch is the last form of communication.
Is the Philippines ready for this market? The bigger share of the pie still goes to Thailand. It has been leading in the medical-tourism market for years, and it does not come as a surprise to me that it is also at the forefront when it comes to nursing-care tourism. This is due to the achievement of private-sector facilities, such as Baan Kamlangchay in Chaing Mai, a German facility focusing on German-speaking Alzheimer patients.
With the Philippines on the rise, we have the first nursing home for German-speaking residents in Iloilo province, Mabuhaii Nursing Home, which was established in 2012. In Metro Manila and Cebu province, more and more facilities are being established for those in need of care.
Philippine Retirement Authority (PRA) General Manager Veredigno Atienza realized this potential for the Philippines and, in response, created the “Human Touch Visa” to stimulate the nursing-care market. The visa is specifically created for those who intend to migrate to the Philippines to receive nursing care.
The Philippines is on the right track to become a recognized player in this new market. What needs to be done is capacity-building in the medical field. As of now, the country has only 140 geriatric doctors, and there is no extensive geriatric course that addresses proper long-term care, including psychological care for dementia patients and their families.
You might wonder if it is necessary to develop the sector extensively only for foreign clients, as you might say that nursing homes do not fit into Philippine culture.
True, most nursing homes in the country were initially built for foreign clients, but over time, to my surprise, they developed into facilities for local residents. The total number of beds in private institutions quintupled in the last three years, and about 80 percent of these beds are occupied by Filipino residents. This increase strongly indicates that there is also a need for geriatric services for the local market, despite its negative associations.
If addressed correctly, we can develop a strong niche-market product for the Philippines as the demand for nursing-care tourism will develop exponentially over time. Additionally, we can develop services ranging from residential care to daycare for Filipino seniors, benefiting both markets and creating new jobs in the health-care industry.
If you would like to learn more about care for the aged, ask me or one of our international experts at the Retirement & Healthcare: Master Class 2014, to be held on November 5 and 6 at the Marriott Hotel Manila. Our key speakers for international aged-care facilities in Asia are Choe Lam Tan and Jack Tan, founders and directors of the Jeta Garden Group, which runs facilities in Australia and Malaysia. The event is organized by the Retirement & Healthcare Coalition, in partnership with the Department of Tourism and the PRA.
To register for the Retirement & Healthcare: Master Class 2014, call (632) 845-1324 or e-mail events@rhc.com.ph. For more information, visit www.rhs-asia.com.