Medical Tourism in Germany: Market and Mechanics

Medical tourism in Germany rests on clinical depth rather than price, and that position has weakened over the past decade. Researchers at the Hochschule Bonn-Rhein-Sieg counted roughly 241,000 foreign patients in 2013, generating close to 1.2 billion euros for hospitals and physicians. The structural advantages that built the market are intact. What has changed is that competitor destinations now run international patient services deliberately, and the German response has been uneven.

The size of the German medical tourism market

Researchers at the Hochschule Bonn-Rhein-Sieg, the leading research institution for medical tourism in the German-speaking world, counted roughly 241,000 patients from abroad treated in Germany on an inpatient or outpatient basis in 2013, an increase of 7.7 per cent year on year. The same body puts the revenue those patients generated for hospitals at close to 1.2 billion euros.

That figure describes clinical services only. It excludes what the same patients and their accompanying families spend on hotels, restaurants, transport and retail, which for the host cities is the larger number. Between 40 and 45 per cent of the total are medical tourists in the strict sense, meaning people who made the journey in order to be treated. The remainder are visitors who fell ill, residents without full cover, and emergencies.

Where the patients come from

Germany's immediate European neighbours supply the largest group, followed by the Arabic-speaking and Russian-speaking markets. Russia was the single most important national market in the period the Hochschule Bonn-Rhein-Sieg surveyed, with around 11,000 inpatient and 16,000 outpatient cases.

The ordering surprises those who assume the Gulf dominates, and it matters operationally, because European cases arrive through different channels and expect different things from Gulf cases. A hospital that builds its entire international offer around one sending market has usually misread its own patient mix.

The market is also older than the vocabulary used to describe it. A former Libyan head of state was examined at the Deutsche Klinik für Diagnostik in Wiesbaden in 1978, and that hospital had built an international reputation well before medical tourism existed as a term. MESC ran the DKD's entire international patient operation from 1986 until 2012.

Why the German position has slipped

Foreign patient numbers have not held steady over the past decade; they have fallen. Political factors account for part of that and lie outside any hospital's control. The remainder does not.

The pattern is operational rather than clinical. Response times to international enquiries are often measured in days where competitor destinations measure them in hours, language capability across international offices is uneven, cost estimates frequently arrive as a single figure without a breakdown, and attendance at international trade formats has been reduced at many institutions. Underlying these is a tendency to treat international patients as incidental revenue rather than as a service line with its own strategy and budget. Health Tourism News reaches a similar assessment in its analysis of the decline of medical tourism in Germany, noting reluctance to participate in the promotional formats where competitor destinations are visible.

Competitor destinations spent the same decade doing the opposite, and the effect compounds. A patient who receives a fast, itemised response from one country and a slower, less detailed one from another draws a conclusion about how each would handle a complication.

How foreign patients reach a German hospital

Foreign patients have no barrier-free access to the German healthcare system, a point established repeatedly from both a scientific and a legal perspective. A domestic patient arrives with a general practitioner's referral, an insurance card and a defined route into the correct department. A foreign patient has none of these, and frequently no way of determining which specialty is the right one to approach.

That structural gap, rather than any moral failing, is why intermediaries exist. In 2013, 81.1 per cent of German hospitals used patient facilitators to acquire foreign patients. The dependency this creates, and how to structure it, is treated in the companion pillar on medical tourism facilitators.

Digitalisation has begun to change the picture. Where a hospital publishes its services, its physicians and its pricing directly, a patient abroad can make contact without an intermediary for the first time, and the hospital retains responsibility for how it is presented. MESC has examined what telemedicine and direct provider access mean for the referral question, including the use of automated triage as a preventive compliance measure.

Extra-budgetary revenue and why it behaves differently

Two features make foreign patient income unusually attractive to a German hospital. It falls outside planned budgeting, which permits far more flexible use than the rest of the hospital's money, and foreign cases are frequently billed outside the DRG and GOÄ frameworks that constrain domestic billing.

The consequence that gets overlooked is that this revenue can be reinvested directly into facilities without drawing on the budget for domestic care. That is the strongest argument available to a hospital whose own community suspects foreign self-payers of receiving preferential treatment: the equipment and staffing that international revenue funded serve local patients too. Hospitals are markedly more reluctant to make that argument publicly than the evidence warrants. The wider effect is set out in MESC's analysis of the trickle-down economy of medical tourism.

Compliance in the German market

Germany is a stricter environment than most destinations it competes with. The Kiel judgment (8 O 28/11) found percentage-based referral remuneration contrary to public policy, and sections 299a and 299b of the Criminal Code reach benefits connected with the professional practice of a healthcare professional, which brings foreign referring physicians into scope. Tour operator liability arises wherever treatment is bundled with travel and accommodation.

Certification is the area where expectations and reality diverge most. The weight attached to international accreditation in this market is exaggerated, not infrequently by parties with a commercial interest in the accreditation, and most hospitals that international patients visit hold no recognised international accreditation at all.

What a hospital needs in place

An international office and multilingual staff are the correct first step and are not sufficient alone. Without standard operating procedures, and without those procedures connected to the right interfaces inside the institution, an international office becomes a mailbox. Establishing that department and its procedures is the subject of MESC's international patient services practice.

Above the operational layer sits the part that is routinely skipped. A concept has to exist at strategic level for the processes to serve: how many foreign patients the hospital can care for at its actual capacity, which specialties are attractive abroad as distinct from which the hospital is proud of, and which non-medical services it is prepared to provide and fund. Those questions can only be resolved by management, because management later has to supply the budget that answers them. MESC has argued that international patients are a matter for top management rather than a task delegated to a department and forgotten. Setting that concept and aligning the processes beneath it is covered under strategy and operations.

What it means

Germany's structural advantages have not moved. Clinical depth is real, subspecialty coverage is real, and the sending markets have not stopped needing what German hospitals can do. What has gone is the assumption that this suffices without organisation behind it.

The hospitals recovering ground are those that stopped treating international patients as a by-product of reputation and started running the service line with a strategy, a budget and someone accountable for it. The constraint is no longer clinical capability. It is whether an institution is willing to be answerable for the experience it delivers to patients who cannot easily verify anything in advance, and to be transparent about what it charges them. That is the ground Germany competes on, and it is worth defending.

Common questions

How many foreign patients does Germany treat each year?

Researchers at the Hochschule Bonn-Rhein-Sieg counted roughly 241,000 patients from abroad treated on an inpatient or outpatient basis in 2013, an increase of 7.7 per cent on the previous year. Between 40 and 45 per cent are medical tourists in the strict sense, meaning people who travelled for the purpose of treatment.

What is medical tourism worth to German hospitals?

Close to 1.2 billion euros a year in clinical revenue, according to figures from the Hochschule Bonn-Rhein-Sieg. That covers medical services only and excludes what patients and accompanying family spend on accommodation, transport, restaurants and retail, which for the host cities is the larger sum.

Why has Germany lost ground in medical tourism?

Partly for political reasons outside hospital control, and partly because response times, language capability and pricing transparency have not kept pace with competitor destinations. Underlying both is a tendency to treat international patients as incidental revenue rather than as a service line with its own strategy and budget.

How do international patients find a German hospital?

Predominantly through intermediaries, because foreign patients have no barrier-free access to the German system. They arrive without a general practitioner referral, without domestic cover to present and often without knowing which specialty to approach. Digitalisation has begun to open a direct route for the first time.

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