The Healthcare landscape in Latin America is changing quickly. Demand is growing as populations age and chronic diseases become commonplace. Increasing wealth in some demographic segments drives a desire for higher quality services.
Governments are increasing spending, and local and multinational private sector players are investing heavily to expand their footprint in the region. Access to healthcare in Latin America has been increasing since the 1990s.
However, day-to-day delivery of medical services still needs improvement. 30 percent of the population does not have access to healthcare and not many countries in the region meet international indicators on doctor-to-patient ratio. On an average, the region spends only 6.7 percent of its GDP on healthcare. On average, Latin America performs best in personalized technologies, such as devices, applications and reimbursement structures that help drive personalized healthcare; however, the areas of planning, organization and delivery of health services were the lowest performers across the region.While technology is gradually getting up to speed in Latin America, many hospitals and medical centers have critical needs to keep up with current trends. Some of these needs encompass smart devices as well as updated Internet security protocols.
Smart Devices in Healthcare:- Smart devices come in a wide variety of shapes, sizes and types. Many are monitors that can be used to constantly evaluate data such as breathing, heart rate, blood sugar and other data points. They are connected via Bluetooth to a device, where they can provide constant readouts as well as alerts for both patient and doctor. Other advances in “smart” devices include imaging machines that interpret data from CT or MRI scans and learn from them. The end result is a more efficient use of older technologies to more accurately discover problems, and possibly even recommend future treatments. The expansion of smartphone usage in Latin America is driving the growth of other smart devices.
This is allowing for expanded usage of apps and other tools that monitor health data directly on the smartphone. For example, there are apps for blood pressure, diabetes and heart rate management, among others.Mexico, Argentina and Brazil currently account for 67% of the medical app usage in Latin America.
An Increased Need for Cybersecurity:- While smart medical devices are one area of need in Latin America, the other is less hardware-focused. Enhanced Internet security is needed to protect both hospitals and their patients from cyberattacks on some of these cutting-edge systems and technologies. Recent research indicates that Latin America is severely lacking in this area. A 2016 report from the Inter-American Development Bank (IDB) looked into this issue and found that the Internet security in many Latin American nations ranged from middling to poor.Brazil and Mexico, in particular, have a low level of awareness of cybercrimes and also have no legislation in place to mandate that companies protect against it. It’s no wonder that the estimated economic burden of cybercrime in Latin America is almost US$ 90 billion a year.
Efficiency Challenges in Latin America:- Latin American hospitals are not known for efficient service. A 2018 Bloomberg ranking examined the efficiency of healthcare providers in 55 countries. Latin American markets all ranked toward the bottom, including the Dominican Republic (#50), Venezuela (#39), Colombia (#47) and Brazil (#51 of 55).Latin American hospitals also face other challenges. For one, a majority of their medical devices and equipment are imported, which leads to increased costs in a time of depreciation. Given the lackluster economic performance of the region in recent years (with 1% growth in GDP in 2016, 1.3% in 2017 and 1.2% in 2018), inflationary pressures are increasing the cost of services.
Implications for pharmaceutical companies -
The top-performing companies will begin by getting the basics right. They will implement capability and organizational improvements throughout their organization as they prepare to launch programs linked more directly to the shifts we have identified. They will assure that relationships with all levels of government and key private and public accounts are not neglected. Successful companies will also sharpen their core functions to respond to increased use of generics, provider consolidation and cost pressures. They will aspire to bring their local capabilities to global standards, rather than trudge forward with practices that are “good enough” for a developing market. This includes understanding the nuances and likely evolution of specific channels — for example, public programs or mass retail. These companies will make use of the global and regional expertise of their parent organizations, but will have sufficient local authority to adapt the model for Mexico, updating their plans every quarter if necessary to follow the changes.
