Assessing the Needs of the Latin American Healthcare Consumer

By Mariana Romero Roy

In the ever-changing world of healthcare, it can be challenging to keep up with the trends. New technologies like AI, broad policy changes and major global events like pandemics can take what you think you know and shift it drastically.

Though hospital administrators and policymakers at the highest levels often dictate what supplies and equipment are most frequently requested, the reality of healthcare is that it all comes down to the patients. What type of care are they getting; what care are they not getting; and how are they engaging with the healthcare economy in general. By understanding those trends, you can start to get a better sense of what changes hospitals will make — and ultimately what treatments, services and equipment will be in greater demand in the years ahead.

To keep you at the cutting edge of developing trends, it’s best to hear directly from the healthcare consumer. McKinsey recently completed a survey of more than 4,200 people in Latin America to gauge their interest in healthcare, and what exactly they’re looking for from the market. Here are some of the highlights.

Accessibility Is a Concern

Unfortunately, one of the key takeaways from Latin American healthcare consumers is that accessibility of healthcare continues to be an issue for many people in the region. In fact, 2,643 people said that they have deferred desired medical care over the past year.

When asked why they deferred care, concerns related to the accessibility of care were at the top of people’s lists. This includes limited availability, long wait times and even not knowing where to go for their desired care. Clearly, many Latin American patients still have concerns with the accessibility of medical care despite the improvements to care in the region in recent years.

Accessibility Fast Stats

• 62% – Percentage of Latin American healthcare consumer who deferred medical care over the past year (2,643 total)
• 31% – Those who cited lack of accessibility as a reason for deferring care
• 14% – Those who did not know where to go to receive their desired care

Affordability Remains an Issue

Despite the universal healthcare systems in place in many countries in Latin America, affordability is also a problem for many Latin American healthcare consumers. For example, of the 2,643 survey respondents who said that they deferred medical care over the past year, 24% cited the high cost as the reason for their deferral. Overall, many of the 4,276 total survey respondents say that they still pay out of pocket for some of their healthcare costs, including medications and doctor’s visits.

Perhaps even more concerning, healthcare consumers not only have issues affording medical care, but also private insurance to cover these costs. A majority of people who took the survey do not have private insurance (62%). Twenty percent of that group was interested in private care but lacks the funds to afford it.

What’s more, even those in the survey who did have private insurance were unhappy with the costs. A majority of consumers with private healthcare would accept certain restrictions in order to lower the cost of care, such as seeing a general practitioner first as a gatekeeper, or even seeing a restricted network of doctors. A large majority of respondents were also interested in health services memberships that provided discounts for things like medications, lab tests and preventive care.

Affordability Fast Stats

• 24% – The percentage of healthcare consumers who deferred medical care over the past year because they could not afford it
• 35% – The percentage of survey respondents who pay out of pocket for some medical care
• 20% – The percentage of uninsured survey respondents who are interested in private insurance but can’t afford it
• 78% – The percentage of insured survey respondents who would accept limitations on their insurance for a 10-20% price reduction
• 34% – The average number of survey respondents who were interested in paying $7 to $9 a month for some form of health services membership that offers discounts on medications, lab tests, preventive care and more

Innovations That Improve Access to Care Are Popular

Luckily, it’s not all bad news when it comes to the outlook of Latin American consumers. One area in particular that they seem very interested in is the ability of digital means such as health apps, websites and virtual care to make health care easier to access.

For example, across Latin America, a total of 13% of healthcare consumers regularly uses social medical for prevention and healthcare information. On average, 13% also rely on health apps. These two sources of information trailed only their doctors as the number one source of health information in the survey.

Speaking of health apps, interest in those has grown quite high in the region. A total of 81% of survey respondents across Latin America expressed a willingness to pay out of pocket for a wellness and preventive app.

The other innovation that was interesting to Latin American healthcare consumers is virtual care, or telemedicine. Survey respondents were most open to using virtual care for follow-up appointments (48%), but there was also strong interest in virtual care for low-complexity visits (41%) and mental health counseling (31%). Overall, receiving care virtually or at home for low-complexity medical concerns polled strongly throughout the region.

Innovation Fast Stats

• 48% – The percentage of healthcare consumers who would prefer a virtual consultation for follow-up care
• 41% – Those who would prefer a virtual consultation for low-complexity medical issues
• 31% – Those who would prefer a virtual consultation for mental health counseling
• 81% – The percentage of survey respondents who would pay out of pocket for a wellness and preventive app
• 58% – The percentage of survey respondents who would prefer care outside of a medical facility for low-complexity medical issues

Key Takeaways for Health Care Companies

This survey of thousands of Latin American healthcare consumers highlights some of the concerns that remain in the region, such as inequality when it comes to care, lack of accessibility and high costs. However, a closer look at the numbers indicates a lot of opportunities for healthcare providers and manufacturers that would be appealing to the patients that they ultimately serve.

In particular, the 81% of survey respondents who would pay out of pocket for a high-quality wellness and preventive app each month stands out as a major opportunity for healthcare innovators. When you pair that with the high interest in digital sources of health information, as well as the willingness to pay for health services memberships related to medications, lab tests and more, that indicates a large potential market for healthcare companies related to mobile applications, membership subscriptions, online health information and more.

Another standout opportunity from this survey is the high interest in telehealth or virtual care. Companies that provide the technology and equipment related to virtual care for providers may be able to leverage these stats for higher adoption of their goods and services.

Of course, the survey also indicates strongly that any innovations that increase access to care and improve affordability are going to be appealing to patients. Luckily, many of the technological innovations related to virtual care, membership services and mobile applications can do exactly that, offering more to the patient while also making care more accessible and affordable.

Next Steps

Contact GHI to learn more about healthcare trends and their potential impact on the medical device and equipment industry in Latin America. Our team of researchers can provide the strategic analysis you need to gain valuable insights to support strategic decision-making in your industry.