Price Competitiveness of Healthcare Services and Health Tourism Development Online First

Abstract

Health tourism, through the integration of medical, welfare, and tourism services, has played a significant role in attracting international patients. Factors such as lower treatment costs, high-quality medical services, and shorter waiting times compared to developed countries are among the competitive advantages of developing countries in this field. This study investigates the effect of healthcare service price competitiveness on health tourism development in Iran using the Fuzzy Cognitive Mapping (FCM) approach. By collecting historical data, expert opinions, and conducting simulations with the FCMapper software, seven key nodes—price competitiveness, service quality, infrastructure, marketing, trust, demand, and foreign exchange earnings—and their causal relationships were modeled. The findings revealed that price competitiveness, with a fuzzy weight of 0.85, exerts the strongest direct influence on health tourism demand. Specifically, a 20% reduction in costs increased demand by 35% and foreign exchange earnings by 40%. However, dynamic analysis indicated that this effect would not be sustainable without simultaneous improvements in quality and infrastructure. The combined scenario (price reduction, quality enhancement, and marketing) boosted demand by up to 50% and foreign exchange earnings by 60% (equivalent to USD 1.92 billion). These results underscore the importance of a systemic approach to health tourism.

Jel Code: