The importance of a good medical tourism business model (also known as a revenue model) cannot be overemphasized. A good business model explains how the company will earn income, and it provides a blueprint for acquiring investors and establishing partnerships that will result in the growth and success of the organization.

This video will show you examples of how medical travel companies make their money, how different revenue models work, and ways you can integrate them into your company to grow your startup for the short term as well as the long term.

Yes! I want to get certified in medical tourism

The three main medical tourism business models are:

Administration Fee

But what does the typical medical tourism business model look like? How do medical tourism facilitators make their money? Well, what some do is make use of an administration fee. This is a flat fee for your services, and its usually paid by the patient. This fee doesn’t go up or down. It stays the same no matter how much the procedure is, no matter where the patient is traveling to, and no matter what logistical resources you have to utilize on this trip.


Referral Fee (Commission Based)

Another way medical tourism facilitators make their money is through a referral fee, which is when a clinic, hospital, or physician pays you a commission based on the amount of the procedure. This is a percentage of how much the procedure is going to cost the patient. Unlike the administration fee where it doesn’t matter what procedure the patient gets, the referral fee is a commission-based agreement so the rate does fluctuate.

Medical Tourism Packages

The next medical tourism business model is medical tourism packages, which are typically fixed quotes on services that the healthcare provider or hospital provides to the patient. The beautiful thing about these medical tourism packages is that they include the total treatment cost so patients can feel comfortable in knowing that their one fee covers everything they need in regards to their medical procedure abroad.

Once the patient purchases this package, you can either get a commission from the hospital for the overall procedure package or the hospital can pay you a percentage of what the medical procedure costs, depending on the medical tourism contract you have with them.

Once the patient purchases this package, you can either get a commission from the hospital for the overall procedure package or the hospital can pay you a percentage of what the medical procedure costs, depending on the medical tourism contract you have with them.

Add-Ons, Additional Revenue and Upselling for Medical Tourism Facilitators

Most of the revenues you generate in this profitable medical tourism industry come from the commissions you receive from hospitals and the fees you charge the patients. However, when you’re trying to grow your business it is possible to generate some additional revenue in different ways. You’re working with so many different organizations and facilities that there are always opportunities that you can tap into.

Yes! I want to get certified in medical tourism

Hotels And Tours

Medical tourism facilitators don’t just arrange for the medical procedures and hospital stay for the patient, but also take care of their lodgings at hotels and resorts, and their entertainment while they recover. These present some great opportunities for you and you can always work up a deal with these hotels and tours for a commission.

Leveraging Commissions From Repeat Visits And Referrals

Another great way to increase your revenues is to take advantage of any returning customers. If the patients you referred to a hospital return to the hospital for additional treatments, either through you or directly, the credit goes to you for referring them in the first place. Thus, you can include a clause in your agreement with the hospital that you will receive a commission every time a referred client returns.

A hospital may add a timestamp to this clause, for example, only valid for up to three years after the referral was made, but even so it can be a significant source of revenue for your business and is a clause worth pushing for in your contractual agreement.

To make this work, however, you will need to develop a strong, friendly, and transparent relationship with the hospital, as you have no way of knowing when the patient returns to the hospital until and unless the hospital itself informs you. You will have to have frequent communication with the hospital to reduce the chance of them keeping it a secret. It is also advised that you maintain communications with your past customers as they may subtly hint or outright mention that they are thinking of traveling for medical reasons again or have referred someone to the hospital.

Yes! I want to get certified in medical tourism

Conclusion

By following these steps, you can start off with a small medical tourism agency, which will eventually progress based on your quality of service, determination, and partnerships.

Looking for ways to grow or start a health tourism business? Contact us today and let’s talk about what is possible.

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Info@MedicalTourismBusiness.com