The Liberalization of Thailand Medical Services Industry.

Abstract

The medical service industry has emerged as one of the lucrative business services in the twentieth-first century due to the wave of medical tourism from the globalization across the globe. This research captures the essence on how the developing countries such as Thailand was able to use liberalization as its advantage for creating a competitive private sector in the medical service industry which make Thailand establish itself as the leaders in this sector. On the other hand, the study also compares such development toward the country with a closed system where it is trying to limit the role of private sectors and result to the medical service business in the country unable to compete with others. Upon closer examination, the research found that Thailands business was able to achieve such growth was due to development of private hospitals and government policy that help contribute to the strength of country medical care such as the quality and price competitiveness. Moreover, the diversification of private firms which did not only concentrate on hospital business but other health-related business has allowed the company to increase its value and diverse the risk. Furthermore, the government policy that adapted through the liberalization at both global and regional levels helps increase further attractiveness and strength toward the industry. By comparing Thailand with South Korea which remained restrictive toward open up the medical service, the study found that South Korea was losing out and unable to compete at South Koreas subsidies into the industry has resulted into increase in real price for foreign patients. Although South Korea possess a high and advance medical service, yet, to entering into global competition the country needs serious reform in its healthcare structure. By using the qualitative and comparative approaches, this research was able to provide evidence and the prospect that could be recommended for countries that want to develop or entering this niche markets.