US tariffs may hamper medical tourism industry: Report

IANS May 18, 2025 361 views

The US medical tourism landscape is undergoing dramatic transformation due to escalating import tariffs on medical equipment. Rising healthcare costs are compelling more Americans to seek treatment in countries like India, Mexico, and Thailand. Surgical procedures that cost $50,000 in the US can now be performed for under $12,000 internationally. This trend is expected to continue as trade policies and healthcare expenses remain volatile.

"Tariffs shape patient behaviour, leading to more out-of-pocket expenses" - Alexandra Murdoch, GlobalData Senior Medical Analyst
New Delhi, May 18: As medical expenses continue to climb in the US, a growing number of patients are looking overseas for more cost-effective treatment options and suggested tariffs may impact the medical tourism industry, according to a new report.

Key Points

1

US tariffs significantly increase medical device and equipment costs

2

Medical tourism destinations offer surgeries at 75% lower prices

3

Knee replacement cost drops from $50,000 to $8,000-$12,000 overseas

4

Uninsured patients most impacted by rising healthcare expenses

US trade policy has seen notable changes recently, particularly with regard to import tariffs on countries such as China.

Though these policies are usually justified by economic and geopolitical considerations, they also impact other areas, including the medical device industry and, more specifically, medical tourism.

One growing outcome is how these tariffs are affecting medical tourism -- the practice of traveling to another country to receive healthcare services, according to GlobalData, a leading data and analytics company.

The US has imposed steep tariffs on a range of medical products imported from China, including syringes and needles, rubber medical and surgical gloves, and facemasks.

"These items are integral to a wide variety of medical procedures and daily healthcare operations. The imposition of tariffs on such goods has disrupted supply chains, constrained hospital procurement strategies, and driven up the cost of healthcare delivery across the US," said the report.

In response to these rising costs, a growing number of Americans are turning to medical tourism. Popular destinations include Mexico, India, Thailand, and Costa Rica, which offer competitive pricing and internationally accredited healthcare facilities.

For example, the average cost of a knee replacement surgery in the US can exceed $50,000, but the same procedure in India or Mexico can be performed for $8000-$12,000.

As US healthcare providers face increased operational costs due to tariffs - especially on imported surgical instruments, diagnostic equipment, and protective gear - the price gap between domestic and international care continues to widen, creating a financial incentive for patients to consider treatment overseas.

"While the intended impact of tariffs may not have been to effect healthcare, they do shape patient behaviour. The rise in the cost of medical devices ultimately leads to more out-of-pocket expenses for patients," said Alexandra Murdoch, Senior Medical Analyst at GlobalData.

US tariffs on medical imports are reshaping not only international trade relationships but also domestic healthcare economics. The direct result is an increase in the cost of medical care, which disproportionately affects uninsured and underinsured populations.

One of the most notable responses to these price pressures has been a rise in outbound medical tourism. Patients are seeking high-quality, affordable care in countries that are not impacted by these tariffs -- a trend that is likely to continue if current trade and healthcare cost trajectories remain unchanged.

Reader Comments

Here are 5 diverse Indian perspective comments on the medical tourism article:
R
Rajesh K.
India should capitalize on this opportunity! Our hospitals in Delhi, Mumbai and Chennai already have world-class facilities at 1/5th the US cost. The government should promote medical visas and improve airport connectivity for patients. 🏥✈️
P
Priya M.
While medical tourism brings forex, we must ensure our own citizens aren't priced out. I've seen hospitals prioritize foreign patients over locals because they pay more. Need balanced policies that benefit both economy and public healthcare.
A
Amit S.
Interesting how US policies affect global healthcare! India's advantage isn't just cost - our doctors have experience with diverse cases due to our population size. But we need better post-op care standards for international patients.
S
Sunita R.
Medical tourism is good but what about the poor in our own country? First fix government hospitals where basic medicines are unavailable. Foreign patients shouldn't become VIPs while Indians suffer in crowded wards.
V
Vikram J.
This could be India's moment! But we must improve - better cleanliness standards, transparent pricing and crackdown on touts near hospitals. Also need more multi-lingual staff. If done right, we can beat Thailand and Singapore in this sector. 💪

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