{"id":12217,"date":"2020-03-01T13:19:59","date_gmt":"2020-03-01T13:19:59","guid":{"rendered":"https:\/\/globalhealthintelligence.com\/?p=12217"},"modified":"2026-02-16T12:19:05","modified_gmt":"2026-02-16T18:19:05","slug":"latam-healthcare-2020-the-good-the-bad-and-the-ugly","status":"publish","type":"post","link":"https:\/\/globalhealthintelligence.com\/es\/ghi-analysis\/latam-healthcare-2020-the-good-the-bad-and-the-ugly\/","title":{"rendered":"LatAm Healthcare 2020: The Good, The Bad and The Ugly"},"content":{"rendered":"\n<p>Healthcare in <strong><a rel=\"noreferrer noopener\" aria-label=\"Latin America (opens in a new tab)\" href=\"https:\/\/globalhealthintelligence.com\/es\/ghi-analysis\/the-2020-latin-america-healthcare-forecast\/\" target=\"_blank\">Latin America<\/a><\/strong> is paradoxical. On the one hand, we\u2019re seeing encouraging growth in the acquisition of medical equipment\/devices by LatAm hospitals, as evidenced by the growth in <em>some<\/em> key markets. However, numbers are down in key markets, including <strong><a href=\"https:\/\/globalhealthintelligence.com\/ghi-analysis\/state-of-the-medical-device-market-in-brazil\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Brazil  (opens in a new tab)\">Brazil <\/a><\/strong>\u2013 the region\u2019s largest hospital market. Budget deficits among LatAm governments and economic challenges are squeezing margins and could impact growth negatively\u2014right when longer-term demographic and epidemiological trends are exerting greater pressure on healthcare systems.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The Good<\/h3>\n\n\n\n<p>Latin America seems like an ideal target market for medical equipment\/devices manufacturers. It\u2019s home to more than 22,000 hospitals\u2014nearly a quarter (24%) of the world\u2019s total. However, <strong><a href=\"https:\/\/globalhealthintelligence.com\/hospirank-the-best-equipped-hospitals-in-latin-america-in-2019\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"LatAm hospitals (opens in a new tab)\">LatAm hospitals<\/a><\/strong> are small, with an average of 45 beds versus a US average of 160. Smaller hospitals can\u2019t afford large capital equipment so the vast majority of LatAm hospitals are ill-equipped for modern procedures.<\/p>\n\n\n\n<p>Even with these built-in hindrances to demand, in 2019 we still saw imports of medical devices and equipment go up <strong><a rel=\"noreferrer noopener\" aria-label=\"in several markets (opens in a new tab)\" href=\"https:\/\/globalhealthintelligence.com\/es\/category\/analisis-de-ghi-2\/\" target=\"_blank\">in several markets<\/a><\/strong>. Imports are a close proxy to <a href=\"https:\/\/globalhealthintelligence.com\/unlock-3-new-sales-opportunities-for-latam-medical-equipment-manufacturers\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"sales (opens in a new tab)\">sales<\/a>, since imported devices are brought in to be sold or are presold, instead of being imported for inventory. (<strong>Note:<\/strong> import numbers cover not only equipment but also parts, since hospitals often repair their existing installed base instead of buying whole new machines.)<\/p>\n\n\n\n<p>In 2019, <strong><a href=\"https:\/\/globalhealthintelligence.com\/ghi-analysis\/state-of-the-medical-device-market-in-mexico\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Mexico (opens in a new tab)\">Mexico<\/a><\/strong> posted strong increases in the import of various equipment, device and parts:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>&gt;80%\nincrease of computed tomography machines and parts<\/li><li>&gt;75%\nincrease of heart valves<\/li><li>&gt;75%\nincrease of ultrasound machines\/parts<\/li><li>27%\nincrease of electrocardiograph machines\/parts<\/li><li>8%\nincrease of pacemakers<\/li><li>5%\nincrease of MRI machines\/parts<\/li><\/ul>\n\n\n\n<p>From 2014-2019, Mexico volumes (quantities) grew at a CAGR of 12%. In Mexico, we\u2019re seeing a generalized margin compression of 22% (weighted average), which stems from <strong><a href=\"https:\/\/globalhealthintelligence.com\/ghi-analysis\/why-amlos-policies-will-hurt-healthcare-in-mexico\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"President L\u00f3pez Obrador\u2019s policies to reduce healthcare expenditure (opens in a new tab)\">President L\u00f3pez Obrador\u2019s policies to reduce healthcare expenditure<\/a><\/strong> by consolidating tenders and inviting more foreign competition.<\/p>\n\n\n\n<p>Other\nmarkets also posted gains in volume: <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong><a href=\"https:\/\/globalhealthintelligence.com\/ghi-analysis\/state-of-the-medical-device-market-in-colombia\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Colombia (opens in a new tab)\">Colombia<\/a><\/strong> posted increases in eight categories of medical equipment\/parts, most notably with a 38% uptick with CT scanners &amp; parts and 29% growth with ultrasound machines &amp; parts<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong><a href=\"https:\/\/globalhealthintelligence.com\/the-best-equipped-hospitals-in-latin-america-in-2019\/the-best-equipped-hospitals-in-argentina-2019\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Argentina (opens in a new tab)\">Argentina<\/a><\/strong> showed increases in six categories, with the biggest growth in MRI machines &amp; parts (9.7%)<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/globalhealthintelligence.com\/ghi-analysis\/state-of-the-medical-device-market-in-ecuador\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Ecuador (opens in a new tab)\">Ecuador<\/a> grew in seven categories, mostly in double digits, including a 59% uptick in CT scanners &amp; parts and a 39% increase in ultrasound machines &amp; parts<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The\nBad<\/strong><\/h3>\n\n\n\n<p>Not\nall markets posted growth in imports during 2019, most notably Brazil, where we\nsaw: <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>49%\ndecrease of electrocardiographs<\/li><li>37%\ndecrease of computed tomography equipment<\/li><li>22%\ndecrease of X-ray machines<\/li><li>9%\ndecrease of heart valves<\/li><li>5% decrease\nof ultrasound machines<\/li><li>2%\ndecrease of MRI equipment<\/li><\/ul>\n\n\n\n<p>These\nnumbers highlight decreases in quantities of these equipment types, with\ndecreases also in the value of said equipment. <\/p>\n\n\n\n<p>Overall,\nthe value of medical equipment brought into Brazil in 2019 decreased by 4% and\nthe quantities of this equipment went down by 2%. <\/p>\n\n\n\n<p>While <strong><a href=\"https:\/\/globalhealthintelligence.com\/ghi-analysis\/state-of-the-medical-device-market-in-chile\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Chile (opens in a new tab)\">Chile<\/a><\/strong> showed impressive growth with CT scanners &amp; parts (80%) and pacemakers (32%), 2019 also showed drops in a number of other categories, including EKG machines (46%), heart valves (30%), MRI machines (21%) and radiography\/radiotherapy equipment (19%). Overall, Chile posted a 37% decrease in the quantities of medical equipment brought into the country, despite a solid growth in value (4.4%). The weakening of the Chilean peso, triggered by political unrest in Q4, likely suspending the imports of equipment and materials that were adequately stocked in Chile. <\/p>\n\n\n\n<p><strong><a href=\"https:\/\/globalhealthintelligence.com\/ghi-analysis\/state-of-the-medical-device-market-in-peru\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Peru (opens in a new tab)\">Peru<\/a><\/strong>, one of our favorite growth markets for the past few years, showed a contraction in 2019, posting negative results that arguably outweigh the positives, including drops in quantities imported of radiotherapy\/radiography equipment (74%), artificial joints (33%), ultrasound machines (27%), CT scanners (26%), MRI machines (18%), EKG machines (5%) and heart valves (2%). The political quagmire in Peru, especially in Q4 2019 when congress was dismissed, likely played a role in the downturn in demand.<\/p>\n\n\n\n<p>Budget cuts are likely driving these decreases. Approximately 44% of <strong><a href=\"https:\/\/globalhealthintelligence.com\/ghi-analysis\/the-most-in-demand-medical-equipment-for-latin-american-hospitals\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"hospitals in Latin America (opens in a new tab)\">hospitals in Latin America<\/a><\/strong> are public or mixed and therefore depend on government funding, and many Latin American countries are still struggling to reduce fiscal deficits. <\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"736\" height=\"520\" src=\"https:\/\/globalhealthintelligence.com\/wp-content\/uploads\/2020\/03\/fiscal_balances_in_leading_latam_economies_01.gif\" alt=\"Fiscal Balances in leading LatAm economies\" class=\"wp-image-12221\"\/><\/figure>\n\n\n\n<p>Budget\nchallenges ill-prepare governments to tackle the enormous healthcare challenges\nahead led by increases in: obesity, non-communicable diseases (like diabetes\nand heart disease) and aging populations, all of which will dramatically impact\nhealthcare systems over the next thirty years (starting now). By mid-century, it\u2019s\nprojected that 214 million people (nearly 1\/3 of the population) in Latin\nAmerica will be over 60 years old, resulting in shifting needs from a\nhealthcare standpoint, particularly focused on chronic ailments.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The Ugly<\/h3>\n\n\n\n<p>As difficult as 2019 proved to be, the decade ahead will really challenge Latin American health systems. The cost of healthcare as a % of GDP will grow by close to 30% over the next decade but few Latin American governments have a plan, much less the funds to tackle this challenge. Public healthcare in Latin America remains woefully inefficient. Bloomberg\u2019s most recently published healthcare efficiency ranking ranked Brazil, Colombia, Venezuela and the Dominican Republic on the low end of its scale. This means there is room for cost reductions by i) changing how healthcare is managed and ii) allowing disruption to enter the sector through the private sector. <\/p>\n\n\n\n<p>Public hospitals and their government bosses will continue to squeeze the profits of suppliers, as the AMLO administration in <strong><a href=\"https:\/\/globalhealthintelligence.com\/ghi-analysis\/30-key-health-facts-about-mexico\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Mexico (opens in a new tab)\">Mexico<\/a><\/strong> has proven can be done. Unfortunately, that is a short-term solution that shifts public hospitals to rely on less innovative, cheaper suppliers who may be less likely to install the kinds of game-changing technology that hospitals must invest in to disrupt their inefficient ways. <\/p>\n\n\n\n<p>In\nother words, business as usual in Latin America is drawing to an end. The\npublic market demands lower price equipment and devices and is willing to\nsacrifice quality to get there. The private sector requires disruptive new\napproaches to cut costs and massify their service capabilities as private\nclinics fill the gaps left by a fiscally cornered public sector. Change is\noften ugly in the short term but opens opportunities in the longer term. That\nis where Latin America\u2019s health sector finds itself today. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>An analysis of positive developments to look forward to, problems to watch out for and potential catastrophes in the making<\/p>\n","protected":false},"author":24,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[32],"tags":[],"class_list":{"0":"post-12217","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-ghi-analysis"},"_links":{"self":[{"href":"https:\/\/globalhealthintelligence.com\/es\/wp-json\/wp\/v2\/posts\/12217","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globalhealthintelligence.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globalhealthintelligence.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globalhealthintelligence.com\/es\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/globalhealthintelligence.com\/es\/wp-json\/wp\/v2\/comments?post=12217"}],"version-history":[{"count":2,"href":"https:\/\/globalhealthintelligence.com\/es\/wp-json\/wp\/v2\/posts\/12217\/revisions"}],"predecessor-version":[{"id":29852,"href":"https:\/\/globalhealthintelligence.com\/es\/wp-json\/wp\/v2\/posts\/12217\/revisions\/29852"}],"wp:attachment":[{"href":"https:\/\/globalhealthintelligence.com\/es\/wp-json\/wp\/v2\/media?parent=12217"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globalhealthintelligence.com\/es\/wp-json\/wp\/v2\/categories?post=12217"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globalhealthintelligence.com\/es\/wp-json\/wp\/v2\/tags?post=12217"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}