How US Expats And Medical Tourism In Mexico Are Making The Medical Economy Boom
The effects of globalisation are now being felt even by healthcare services. The growth of medical tourism in Mexico today is immense, and this is one of the reasons why we will evaluate its effects in Mexico. We will look into reasons which are responsible for its booming and the opportunities for both foreigners and locals in Mexico.
Healthcare services are increasingly becoming competitive, just like any other product or service in the market today. Some patients are more willing to travel to other countries to seek better treatments at affordable rates.
In the entire Western Hemisphere, Mexico is one of the top destinations for North Americans in need of affordable healthcare. By the end of last year, they estimate that more than one million foreigners visited Mexico for a wide range of medical services. As a result, the country’s earning from medical tourism in Mexico has gone up in the past decade. The growth had jumped from USD 544 million in 2006 to USD 4.7 billion in 2016. And the trend can only be expected to go north.
Some of the prevalent remedies are heart transplant, cosmetic surgery, cancer treatments, orthopaedic surgery, and dentistry. These are making most North Americans troop to Mexico.
Why High Demand For Healthcare Services In Mexico
Here is a look at some of the factors where there is such a high demand for healthcare services in Mexico:
An increase in the number of US expats retiring in Mexico
Mexico is one of the preferred destinations for most US citizens looking for peaceful retirement locations. Some locations are extremely popular such as the southern regions of Chiapas, Campeche, and Yucatan. The number of newcomers and settlers keep on going up every single year. Since the US pension is in dollars, the retirees have the luxury to afford more delightful lives in better regions where the weather is nearly perfect throughout the year.
Since most of these Americans are elderly, they are usually in need of specific medical treatments, a fact that has further contributed to medical tourism in Mexico. Though it may not be possible to know the exact number, about one million Americans have now migrated to retire in Mexico. It translates into a significant amount of businesses for the Mexican healthcare facilities where the level of care is the same, if not better than what you find in most of the US healthcare facilities.
Medical Tourism In Mexico
Medical tourism in Mexico is the primary driver of the phenomenon because the main reason for such visitors is purely to seek medical treatment. Unlike the primary purpose of expats for being in the country is to have a better life or retire. The inflow of medical tourists to Mexico is directly related to the politics revolving the country’s healthcare system. There is no universal healthcare system in the United States, except for a complex system of private and government-provided healthcare solutions. The majority of American people are unable to afford. President Barrack Obama made attempts to reform the sector by launching the famous Obamacare, which enables millions of Americans to have access to primary healthcare. But even with that, Obamacare was not universal, and this implied that millions of Americans still had no access to primary healthcare.
There are debates in the Senate to repeal Obamacare since President Trump assumed office. It creates potential of yet many more Americans to lose the little supporting they were getting from the government as far as healthcare services were concerned.
Progress Of Medical Tourism In Mexico
Meanwhile, Mexico is improving its expertise in medicine. With the help of the crop of new generation practitioners offering outstanding services at competitive rates. A plastic surgery procedure would cost approximately 56% less when done in Mexico compared to the US. A heart valve replacement is maybe 89% cheaper in Mexico compared when they do the procedure in the United States. Therefore, the cost of a flight ticket to Mexico wouldn’t be an issue for anyone in need of affordable treatment.
It estimates that close to 15million Americans cannot have health insurance any more. It is if the US Senate succeeds in doing away with Obamacare and replacing it with the Trump Care. Without a doubt, it will increase the numbers in Medical tourism in Mexico, and there will also be lots of openings for businesses dealing with the healthcare sector.
Magnificent Business Opportunities In The Medical Industry
Several business opportunities are stemming up from the ever-expanding sector of medical tourism in Mexico. For example, back in 2016, 3E Accounting was approached by a company based in the United States, though with international experience in the medical billing industry. The company was keen on joining the Mexican market with the primary objective of helping patients with medical billing. It is by making the possibility for them to claim US insurance. The client didn’t have any knowledge about the local market. Therefore, they also needed local contacts as well as Spanish speaking experts. 3E Accounting helped the client to form a company in Mexico following these four main steps:
1. Delivery Of The Market Development Report (MRD)
The Market Entry Service Team at 3E Accounting does the MRD. The MRD is a comprehensive market research. The report contains all the relevant information about the medical billing industry in the country. They can map the most potent regions because it is also geographically targeted.
2. Hiring And Managing Staff On Behalf Of The Client’s Company
3E Accounting did not just search for the best possible Mexican employees but also worked on their payroll so that the client was in a position to entirely focus on incorporating the business.
3. Setting Up Of The Company’s Operations
It aims at fully establishing the company online to boost transactions. It involved launching the website and the social media pages all at the same time. They can create, launch and manage crucial social media pages. Adoption of physical approach strategies is a means of engaging directly with the potential clients to complement the online presence. It is where the company’s products were explained and sold to them. Consequently, the company signed a service agreement six weeks after making the initial contact with the target clients.
4. Legal And Accounting
The last step of the process was the put the client’s accounting and legal frameworks in order. So they can avoid certain complexities of the Mexican market. It involved the customisation of contracts to suit the needs of every client hospital. Our accounting and finance team made sure that the client does every financial transaction from Mexico to the United States. Also, they conformed to the rules and regulations established by the Mexican tax authorities.
3E Accounting is a market leader when it comes to helping foreign and local companies to develop and conduct businesses not just in Mexico, but in entire Latin America. Our multilingual back-office services are what you need for a smooth set up and to get going smoothly with your operations. Let us work with you in forming your company in Mexico if you desire to have the same success that our clients had. You may want to explore more on how you can do business out of medical tourism in Mexico. Contact us for more details.