Hospital Chains Expand into New Markets Amid Decline in Medical Tourism from West Asia

Medical Tourism in India: Impact of Iran War on Hospital Chains

Key Highlights

• Hospital chains in India are diversifying their patient mix due to a decline in medical tourism from West Asia, resulting from the Iran war.
• Inquiries from West Asia have fallen by 25-30% in recent weeks, with medical value travel (MVT) facilitators and hospital executives citing uncertainty and flight disruptions as the main reasons.
• The decline in medical tourism is expected to lead to a 5-10% short-term revenue dip for hospitals, with fertility, cosmetic, and general surgeries being delayed.

New Markets for Hospital Chains

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• Hospital chains are scouting new geographies, including the Balkan states (Albania, Kosovo, Bulgaria, and Romania), Algeria, and Cambodia, to offset the decline in West Asian patients.
• Hospitals are investing in interpreters, international lounges, and culturally aligned care to build trust in these markets.

Company Updates

• Apollo Hospitals expects Bangladesh to remain one of its strongest international markets, despite softening African inflows.
• Fortis Healthcare is preparing for a subdued quarter due to the impact of the Iran war on West Asian patients, but expects to mitigate risk through diversified source markets and tele-consult pathways.
• Max Healthcare derives around 9% of its revenue from international patients.

Industry Outlook

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• India's medical tourism industry, valued at over $3 billion, is expected to be impacted by the Iran war, with a potential 20-30% decline in revenue if flight corridors remain unstable.
• However, MVT facilitators expect the downturn to be brief, with patients from the Middle East returning in higher numbers once travel stabilises.