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International Accreditation Standards and the Benefits to Hospitals Attracting Medical Tourists

There are several studies showing international hospital accreditation does have some impact on clinical standards and even bed occupancy rates. However, little is known about the impact on attracting more international medical tourists to hospitals that have received this distinction. It was expected, prior to the study, that participating in international accreditation might increase operational expenses and greater amounts of international patients would also boost patient volumes and profitability. However, this research found that the investment in accreditation led to insignificant changes (pre-accreditation versus post-accreditation) in operating profit margins (OPM), net profit margins (NPM) and the debt-to-equity (D/E) ratio. This suggests that international hospital accreditation has little impact on the financial aspects of the hospital’s operations. It appears to be more of a signaling strategy than a recipe for growth. However, there may be some other tangible benefits of international accreditation (e.g., better medical/clinical outcomes).