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Today’s focus is on medical tourism facilitators and the different business models they can set up to be successful in the medical tourism industry. There are three popular medical tourism business models that facilitators use in their business: administration fee, referral fee, and procedure package pricing.
In this article I would like to focus on the specific business model Procedure Package Pricing. This type of pricing is a win for the patient and the medical tourism facilitator. This package includes the healthcare procedure, doctors’ team fees, proscription costs, and even goes so far as to include things like the transportation and hotel for your patient. You’re going to want to get as many things as you can into this package and present it to your client. That way they don’t have to worry about paying multiple different people on their medical tourism trip. This way, they just pay you their one fee and can be done with it. Everything will be set and pre-paid for.
On a side note, it’s likely that you’re not going to be able to add every service that the patient will need on their medical trip, but try to add as many things as you can into this package. Patients often love this, as it’s very convenient for them. Who wants to go to multiple stores, and buy one item per store? It’s a nightmare. Wouldn’t it be better just to go to one store, get everything you need, and then go home? That’s the beauty of this business model.
You’ll also be adding your commission fee onto this package. So, the more services you add to the package, the more you’re going to earn, and the more benefits the patient will enjoy. But you do want to be very clear about what’s going to be in the package, and what’s not. If there are things that you know the patient is going to have to pay for outside of the services included in the package, be open about it. You don’t want them to have any surprises on their medical trip. It’s only going to reflect bad on you and your business if they aren’t a happy customer, so be sure to let them know exactly what the package entails. Communication is key.
RELATED: How Do Medical Tourism Facilitators Make Their Salary?
I’ve put an example below to better explain Procedure Package Pricing, though I do want to let you know that the numbers in this example are not specific numbers, just some random numbers made up to help you get an idea of how this package would work, ideally. But what’s included in the package is very real.
The procedure (represented by X) is an orthopedic procedure. Then there is the health care center’s fee, which is $10,000 on this example. The doctors team has a separate fee of $800. You’d also want to include something like complication insurance, which is $600. Medication would be $1200 for this example. Bundle these up, and you have a package for $12,600 and you would present this to the customer. Be sure to let them know that they won’t have to pay anything for the procedure outside of the package’s flat fee of $12,600. You can also add on things like hotel and lodging, or anything else you can think of that your patient might need on this medical trip. This way all they have is one payment, which will eliminate what they’d have to pay while abroad.
IMPORTANT NOTE: Something that’s noteworthy about these packages is that some hospitals deduct the facilitators 10% commission (a typical commission is 10-20% of the package price) from the overall price of the package, and some hospitals don’t. In the above example, I assumed that the hospital deducted your 10% commission fee from the $12,600 package price, so your fee would be $1,260.
When it comes to quotes, a lot of facilitators say, “Hey Gill, people are emailing me and asking me how much is it for my services, but I don’t even know exactly what they want.” I tell them that they’re going to want to be very slow to give them specific quotes, because it could come back to haunt them if they don’t know exactly what procedure they need, what specific services they want, or where they’re trying to go. Try to get a telephone number for they potential client so you guys can have a conversation. This way, you can get more deals and work your way towards a specific quote.
If it gets to a point where they just want to communicate through email, you can give them a price, but let them know that it is subject to change since you don’t have all the details you need. It’s very important for you to cover your basis so it doesn’t look like you’re wavering. Working with certain international hospitals can get complex with these packages, because some of these hospitals already have their own medical tourism packages. You don’t want a customer to call you, ask how much it is for your services, then hang up and call the hospital you were promoting only to get a different price.
You want to make sure that your company, and the hospital you’re working with, have the same package price, and make sure that you both have the same medical tourism packages promoted at the same rate so that the customer doesn’t bypass you and solely work with the hospital. This is something I’ve seen happen before, so it’s very important that you double check with the hospital so that you don’t get cut out.
When it comes to receiving payment from these customers, you can do it in one of two ways: They can pay the hospital, or you can provide the bundle for them and get paid directly. Obviously there are pros and cons either way. If you let them pay the hospital there’s going to be a bit of delay before you can get your commission from that hospital. If you take the payment directly, then you have more liability as a company.
If you are just getting into the industry and you need a website, online presence, or more educational or practical tools, check out our Medical Tourism Facilitator Growth Kit. We can help. I talk about these things because I think they’re exciting. I’ve seen a lot of success with these business models, and I know you can too. Thanks for reading.
This short medical tourism training course was written by Gilliam Elliott of Medical Tourism Business.