In the next ten years medical tourism and the need for extended stay, furnished housing is about to explode in the United States. Now, why?
Well, first of all, life expectancy. People are living well into their eighties right now. This has never happened before in our history. That means that by the end of this decade there’s going to be 115 million people in the United States over the age of fifty. Eighty-three percent of the people who buy and get involved in medical tourism are Baby Boomers.
There are three primary segments to medical tourism 2014. Let’s look at a couple of them now.
This is the medical tourism that uses extended stay products for follow-up visits and therapy. The first is Americans who travel outside the United States for affordable treatment. Now this is a big opportunity for those of you who have partners or suppliers outside the U.S. People who you refer business to and they pay you commission. Of course it’s a great segment for companies like Oakwood, Bridgestreet, and the Apartment Service.
When our Boomers leave the U.S. to get medical treatment these are the countries that they predominately go to visit. It’s usually for elective surgery. Brazil is cosmetic. Costa Rica and Hungary are for primary dental business, Hungary’s almost 100% dental business. People go to India for heart treatment and orthopedic treatment. And all the rest, it’s kind of just a mixture of, all the needs are being filled. So this, that’s the largest group. Boomers leaving the U.S.
The second largest group is international travelers who come to the U.S. to get medical or dental treatment. This group, inbound medical tourists, is comprised of two separate subgroups.
The first are residents of country’s like Canada and Great Britain who are not willing to wait several months for procedures like hip replacements, back surgery, knee replacements, and cosmetic surgery. They also come to the United States for treatment of depression and stress.
For example, a recent survey of Canadian physicians discovered that the average Canadian that needs elective surgery, or non-life threatening surgery, is on a nineteen week waiting list. Now the good news for those of us in the United States in a particular corporate housing is that three percent of the entire Canadian population right now is sitting on a waiting list for a procedure and they’re growing impatient by the day. Seven Canadian provinces have reported a marked increase since 2012 in the number of their citizens who get frustrated and go to the U.S. for their medical treatment and stay for long-term follow-up.
Well that’s good news for all of us in this business of extended stay Tucson housing. The number of Canadians come to the U.S. is highest it’s ever been this year, but it’s about to get bigger and bigger as these Boomers get older and older.