Health tourism has grown considerably over the past two decades becoming a very significant sector in the overall world tourism trade. Nevertheless, health tourism development in Croatia is lagging in comparison with competitors in the global market. Generally, investment in health care sector can produce many benefits such as increase in productivity, reduction in sick leave and early retirement expenditures. The governments therefore pay keen attention in keeping their respective population as healthy as possible and health tourism plays a significant role in administrative policies that encourage such an approach. In order to further develop health tourism in Croatia and make it competitive in the global market, there is a need to define the domain of “health tourism”. Croatian “health tourism” comprises three segments: medical, health and wellness tourism. Croatian strengths and weaknesses in each of these three segments are hereto discussed. Overall, in analyzing Croatia’s legislation in the domain of health tourism it was found that a development of that sector is seriously hampered by administrative restrictions in terms of capital investments. In adition, the travel industry marketing of Croatia’s health tourism resources and possibilities is underdeveloped. For example, The Tourist Service Act limits promotion of complex health care packages exclusively to tourist agencies. In addition, loose standards and accreditations undermine the level of quality that foreign tourists/patients may expect. National policies of leading countries in the field of health tourism are therefore discussed in order to look for policies that could be implemented in modifying Croatia’s health tourism’ legislative/administrative approach to make health tourism in Croatia more alluring and competitive, worldwide. Moreover, to avail it to utilize its full potential in developing it into a national tourism brand.