Medical outsourcing in Asia is the practice of contracting medical services, to companies or professionals. The Asian medical outsourcing market has grown significantly in recent years, driven by factors such as cost savings, skilled labor, and advancements in technology. This article discusses the history, key drivers, and market trends in medical outsourcing in Asia, as well as the benefits and challenges associated with this practice.

In the 21 century, especially in the 2010s, a growing number of medical tourists from the United States, United Kingdom, and Western Europe have been traveling to Asian countries, such as the Philippines, Malaysia, and Indonesia, for cheaper health treatment.

The history of medical outsourcing in Asia can be traced back to the 1980s and 1990s, when multinational pharmaceutical and medical device companies began to establish research and manufacturing facilities in Asian countries, primarily to take advantage of lower labor and production costs. Over time, the growth of the outsourcing industry has been fueled by the increasing demand for healthcare services, the expansion of the middle class in Asia, and advancements in medical technology.^[1]

One reason for this trend is the high cost of healthcare in many Western countries. In the United States, for example, medical treatments can be extremely expensive, and many people are unable to afford the care they need. By traveling to countries with lower healthcare costs, such as the Philippines or Malaysia, patients are able to receive the same level of care at a fraction of the cost.

Another reason for the popularity of medical outsourcing in Asia is the high quality of care available in many of these countries. Many hospitals in the Philippines, Malaysia, and Indonesia have modern facilities and are staffed by highly trained professionals. In addition, these countries often offer a wide range of medical services, including surgery, dentistry, and cosmetic procedures.

In Singapore, for example, the medical tourism industry is estimated to comprise around 3% of the country's GDP. In Indonesia, the industry is estimated to be worth around $1 billion per year^[2], while in the Philippines, medical tourism is estimated to generate around $300 million annually.^[3]

The medical tourism industry has grown significantly in recent years, and it is now a major contributor to the economies of many Asian countries. In Singapore, for example, the medical tourism industry is estimated to comprise around 3% of the country's GDP attracting 500,000 medical tourists annually.^[4] In Indonesia, the industry is estimated to be worth around $1 billion per year, while in the Philippines, medical tourism is estimated to generate around $300 million annually.^[5]

According to the Indonesian Ministry of Tourism, the country attracted around 200,000 medical tourists in 2018,^[6]

One of the main reasons for the popularity of medical tourism in Indonesia is the relatively low cost of healthcare in the country. Medical treatments in Indonesia are generally much cheaper than in many Western countries, and patients are able to get more focused and qualitative treatment.