CONTENTS

2 Welcome Letter

3 Current Overview of the Healthcare Industry in Mexico

6 Key Insights and Statistics

8 Private Sector Expansion and Public Health System Concerns

Assessing Mexico's Healthcare Landscape: Infrastructure, Access,

11 Quality, and Challenges

13 Future Outlook and Growth Opportunities

14 Best Practices: Implementing Technological Innovations and

Enhancing Patient Care

16 Challenges and Opportunities in the Mexican Healthcare Sector

18 Sustainability and Social Responsibility

19 Regulatory Landscape in Mexico's Healthcare Sector

21 Closing Thoughts

22 References

Expo Med | 2023 1

CURRENT OVERVIEW
OF THE HEALTHCARE INDUSTRY IN MEXICO
Mexico's healthcare industry
is a dynamic and growing
sector that plays a essential
role in the country's
economy. In 2022, the
7.7%
sector contributed 7.7% to
the GDP, employing over 2
million people.

Healthcare Industry
7.7% of GDP 2022

The current state of this industry in Mexico exhibits the

following factors:

Population Aging:
In recent decades, life expectancy
in Mexico has significantly
increased, leading to a rise in the
elderly population. Consequently,
there is a heightened demand for
health services, especially in chronic
disease and geriatric care.

Incidence of Chronic Diseases:

Chronic diseases such as
diabetes, hypertension, and cardio
vascular diseases have emerged as the
primary causes of death in Mexico.
This has led to a surge in healthcare
spending, as these diseases require
prolonged and costly treatments.

Growing Demand for Private

Healthcare:
The Mexican population is
progessively willing to invest in
private health services, driving the
expansion of the private healthcare
sector.
These factors have played a role in the growth of the
healthcare industry in Mexico, as evidenced by the increased
investment in the sector and the rising number of companies
operating within it.

Expo Med | 2023 3

 Hard Data Analysis

Hard data supporting the current state of the

healthcare industry in Mexico includes the following:

• In Mexico, life • The mortality rate from

expectancy is 77.3 years, chronic diseases in Mexico is
exceeding the OECD 65%, surpassing the OECD
average of 75.8 years. average of 52%.

77.3 75.8
years years 65% 52%

100 100

80 80
CHRONIC DIS.
EXPECTANCY

MORTALITY

60 60

40 40

20 20
LIFE

Mexico OCDE Mexico OCDE

• Healthcare spending in • Mexico has a total of 2,425

Mexico is 7.7% of the GDP, hospitals, with 62% being
lower than the OECD public and 38% private.
average of 8.8%.

Future Outlook
Public
62% The future outlook for the industry in Mexico is based on the
Mexico following factors:
HEALTHCARE

7.7%
• Population Aging:
HOSPITALS
IN MEXICO
SPENDING

8.8% As the Mexican population continues to age, the demand for

Private healthcare, particularly for chronic diseases, is set to rise.
OCDE 38%

• Incidence of Chronic Diseases:

An anticipated increase in the number of people with chronic
diseases will further fuel the demand for healthcare.
• Mexico has 270,000
Doctors in Mexico
doctors, with 55% being 270,000 • Private Sector Growth:
men and 45% women.
The private healthcare sector is poised for continued growth,
driven by the increasing demand for high-quality health services.
DOCTORS IN MEXICO

Men
55% • Technology and Innovation:
Anticipated growth in investments in technology and innovation
will create new opportunities for companies in the sector.
Women
45%

Overall, the heatlhcare industry in Mexico is set for a positive

These data indicate that the industry in Mexico is
future. The sector is well-positioned to seize upcoming
expanding and adapting to meet the needs of a dynamically
opportunities and sustain growth in the years ahead.
changing population.

4 Expo Med | 2023

Current Industry:

Post-Pandemic Dynamics
The COVID-19 pandemic has had a significant impact on the
healthcare industry in Mexico. On one hand, the pandemic has
led to an increased demand for healthcare services, particularly
in emergency care and COVID-19 patient treatment. On the
other, it has accelerated the adoption of new technologies, such
as telehealth and artificial intelligence.

Technological Advances
The healthcare industry is undergoing a period of rapid
technological change. Emerging technologies such as artificial
intelligence, robotics, and virtual reality are transforming
healthcare, providing new possibilities to enhance the quality of
care and reduce costs.

Some of the most important technological breakthroughs in the

healthcare industry encompass:

• Artificial Intelligence:
Artificial intelligence is being employed for advancing diagnoses,
treatments, and surgical procedures. For instance, it is
contributing to the development of highly accurate early cancer
detection systems, surpassing traditional methods.

• Robotics:
In surgical settings, robotics is enhancing precision and safety.
Examples include the use of robots in intricate procedures such as
heart and brain surgeries.

• Virtual Reality:
Virtual reality is serving as a tool for doctor training and remote
patient care. For example, it is used in training physicians for
complex surgeries.

Expo Med | 2023 5

 KEY INSIGHTS AND STATISTICS:
MARKET SIZE, INVESTMENT, EMPLOYMENT, AND
ECONOMIC CONTRIBUTION

Market Size

The medical device market in Mexico stands as one of the largest

in Latin America, expected to reach a valuation of $10 billion in
2023. This market's growth is driven by a series of factors,
including: 2023
• Population Aging: The Mexican population is aging, implying a
greater need for healthcare services, especially for chronic
diseases.
$
• Incidence of Chronic Diseases: Chronic diseases such as
diabetes, hypertension, and cardiovascular diseases are now the
leading causes of death in Mexico. $10 billion USD

• Private Sector Growth: The private healthcare sector is

expanding, providing more people with access to quality health
services.

The Mexican medical technology market is experiencing rapid growth, with an estimated value of
$1.5 billion in 2023, projected to reach $2 billion by 2025. This market expansion is pushed by
various aspects:

• The increasing adoption of new technologies • The need to improve the efficiency and
in healthcare, such as artificial intelligence, quality of healthcare.
robotics, and virtual reality.

• The increasing demand for personalized

healthcare services.

6 Expo Med | 2023

 2022 2023
Investment
Investment in Mexico's healthcare industry is growing fast. In
2022, investment in the sector reached $1.5 billion, a 20% +20%
increase from the previous year. This surge is driven by:

• The expanding Mexican market for medical devices and

technology.
• The need to improve healthcare infrastructure in Mexico.
• The increasing demand for personalized healthcare services.

Investment in the Sector is Focusing On:

• Advancement of new medical devices and technology.

• Enhancement of healthcare infrastructure, encompassing
hospitals and clinics.
• Development of personalized healthcare services, such as telehealth
and precision medicine.
Employment
The healthcare industry in Mexico plays a crucial role in job
creation. In 2022, the sector employed over 2 million
individuals, and this number is anticipated to grow rapidly,
reaching 2.5 million by 2025.
This increase can be attributed to various factors:

• The expanding Mexican market for medical devices and

technology.

• The need to improve healthcare infrastructure in Mexico.

• The increasing demand for personalized healthcare services.

Jobs Within the Sector Are Primarily Centered Around:

• Manufacturing of medical devices and technology.

• Healthcare roles, including doctors, nurses, and other
healthcare professionals.
• Administrative and support services, such as accounting,
marketing, and sales.

Economic Contribution
The healthcare industry in Mexico makes a substantial impact on the nation's economy. In 2022, the sector contributed $80 billion
to the GDP. This economic contribution stems from:
• Revenue generated from the sale of medical devices, medical technology, and healthcare services.
• Taxes paid by companies within the sector.
• Employment opportunities created by the sector.
The sector's economic contribution is quickly expanding, projected to reach $100 billion by 2025. The Mexican medical devices and
technology market is anticipated to sustain its accelerated growth, with continued investment and increasing employment.

Expo Med | 2023 7

 PRIVATE SECTOR EXPANSION
AND PUBLIC HEALTH SYSTEM CONCERNS

In the health sector, the private industry seizes an opportunity driven by dissatisfied patients migrating
from the public health system and a need to implement pandemic-learned lessons.

José Alarcón Irigoyen, Technical Advisor of the Health

Commission at the Business Coordinating Council (CCE, in
Spanish), identifies potential areas for growth within the private
health sector.

One such area is simplifying the reimbursement process for

major medical insurance policies. Dr. Alarcón Irigoyen highlights
the challenge of making policies more economically accessible
and practical.

Seeking faster access to healthcare and shorter waits at public

institutions like IMSS or ISSSTE , patients often turn to clinics
connected to pharmacies.

"While these clinics have sparked discussions in the public sector,

they have proven to be a valuable solution for the population—
except in cases of emergency room or urgent care visits," he
added.

He also reported that approximately 15,000 clinics attached to

pharmacies in the country "cater to the general population, José Alarcón Irigoyen
covering medication costs through either out-of-pocket expenses
or insurance policies, providing an essential solution." Technical Advisor of the Health
Commission at the Business
Beyond pharmacies, the private sector involves wholesalers, 28 Coordinating Council
being regional and at least 4 national.

"Despite criticism for selling to the public sector, these efficient

companies play a vital role in distribution, ensuring medication "Private hospital services, distinct from
availability in pharmacies." the public sector, provide accessible care
through financial means, insurance, or
The private sector includes pharmaceutical companies and direct payments, maintaining high
hospitals, offering fewer beds than the public health system but quality with ongoing opportunities for
excelling in quality of care. improvement"

"Private hospital services, distinct from the public sector, provide

accessible care through financial means, insurance, or direct
payments, maintaining high quality with ongoing opportunities
for improvement," he stated.

Growing Sector
José Alarcón Irigoyen reports progress in private-sector medical care based on data from the National Household Expenditure
Survey, comparing 2018 and 2020 across all population deciles.

8 Expo Med | 2023

“Perhaps the shift is important in the first decile, reflecting individuals facing economic challenges,
which rose from 22% to 31% of users," he noted.

Similarly, the next decile saw an increase from 24% to 33%, and even the top decile moved from
50% to 53%, a change attributed to the sector's pivotal role during the pandemic.

He also emphasized that "private healthcare has grown significantly due to the pandemic, where
saturated public services caused a massive migration to private alternatives. This opportunity was
seized, resulting in significant expansion."

From 2018 to 2020, 6.5 out of every 10 individuals sought medical attention in the private sector.
Meanwhile, the number of individuals receiving care in public health centers dropped from 7.487
million in 2018 to 4.037 million in 2020, which implies a substantial decline from 16% to 9.6%. In
contrast, private clinics or hospitals witnessed a nearly 12% increase, surging from 12.899 million
people to 17 million. Additionally, care in pharmacy clinics increased from 8 to 10 million during the
same period.

Notably, "over 60% of those receiving care were primarily treated in the private sector. The reasons
behind this trend include the pandemic-induced saturation of public services, pre-existing budgetary
constraints, and insufficient investment in the public health sector. Federalization movements,
emphasizing infrastructure and organizational aspects over direct patient care in the public sector,
have further encouraged the private sector's opportunities."

Challenges Ahead

Dr. Alarcón Irigoyen stresses the crucial challenges ahead, such as providing patients with
continuous care, socializing private medicine, and digitalization.

He highlighted that countries like Sweden and Denmark, mentioned as examples or goals for the
healthcare system by President Andrés Manuel López Obrador, also employ a public-private
formula.

"In my view, it's crucial to follow the example,

adapt it to Mexico, and embrace a collaborative
approach that involves public and private sectors,
as well as social and academic elements across
the entire healthcare sector."

"Such collaboration is a
common practice in virtually
every country, including
Denmark and Sweden, as
emphasized at the beginning
of our President's term, both
having a significant private
component," he explained. He
also noted Latin American
examples, such as Colombia,
where public-private
collaboration is in total
synergy.
The expert underlined the
significance of technology in
Mexico's healthcare industry,
with 61% of doctors utilizing
digital records, 44%
conducting virtual
consultations, and 97% using it
for accessing relevant content.
Moreover, the rapid rise in
digitalization during the
pandemic presents an
additional opportunity,
particularly embraced in the
private sector.
"The public sector has been
conservative in adopting
telemedicine, and regulations
in other Latin American
countries are more specific.
There's a significant
opportunity in electronic
prescriptions, where the lack of
regulation hinders access to
medication in both public and
private sectors. Congress has
multiple initiatives, but they
are currently stalled," he said.

Expo Med | 2023 9

 The CCE's technical advisor identified additional opportunities in prescription practices,
e-commerce, and data portability. He stressed the need for immediate action in the public sector to
enhance medication access and availability, while the private sector should prioritize forming
alliances for continuous care. Creating a more accessible and straightforward healthcare system,
including insurance and out-of-pocket payment models, is crucial.

“These areas should be prioritized for immediate action, with a focus on long-term efforts to
establish a comprehensive health system for all Mexicans," he concluded.

Figures to Understand the Situation:

Insurance
companies
in Mexico

• Approximately 25
insurance companies in
Mexico offer major medical
insurances.
Doctors in Mexico
Companies
• About 17 to 20% of Mexico's
• There are about 680
300,000 doctors offer private
pharmaceutical companies in
consultations in outpatient clinics.
Mexico.

Health insurance
specialized institutions

Clinics with a pharmacy

• Approx. 15K clinics Provide medical

• There are about 10
specialized health insurance
institutions in the country.
attached to pharmacies. supplies
• About 2,500 companies
• 15K to 16K doctors provide medical supplies.
affiliated with pharmacies.

Brokers

• Mexico has 4,600 hospitals,

• Mexico has 39K pharmacies,
Individual agents
• 2000 brokers
• 38K individual agents
Pharmacies
including 10,800 from
commercial chains, 8,700 from
supermarkets, and 21,800
independent pharmacies.
of which 2,960 are private. These
include various sizes: 780
hospitals with 1-4 beds, 1,203
with 5-9 beds, 454 with 10-14
beds, 280 with 15-24 beds, 149
with 25-49 beds, and 94 hospitals
with over 50 beds.
Hospitals

10 Expo Med | 2023

ASSESSING MEXICO'S
HEALTHCARE LANDSCAPEINFRASTRUCTURE, ACCESS, QUALITY AND
CHALLENGES
-RJVEWXVYGXYVe This limits the government's ability to provide quality
Mexico's healthcare infrastructure requires critical improvement, healthcare to all Mexicans.
facing shortages in hospitals, clinics, and qualified medical personnel,
according to the OECD. Analysis of Relevant Data
The medical devices market, technology, hospital
With only 2.7 hospital beds per 10,000 inhabitants (below the OECD infrastructure, etc., present relevant data for analysis:
average of 4.5) and a ratio of 2.2 doctors per 10,000 inhabitants
(below the OECD average of 3.4), there is a pressing need for
ȯ Mexico boasts one of Latin America's largest medical
enhancement.
devices markets, valued at approximately $10 billion in 2023.
%GGIW to Medical Services
ȯ The Mexican medical technology sector is experiencing
Access to medical services in Mexico is marked by inequality,
rapid growth, with an estimated market value of $1.5 billion in
particularly for those in rural or low-income areas. Approximately
2023, projected to reach $2 billion by 2025.
12% of the Mexican population lacks medical insurance, forcing
them to bear the financial burden of health services, especially
ȯ The country has a total of 2,425 hospitals, with 62% being
challenging for low-income families.
public and 38% private.
Quality of Care
ȯ With a total of 270,000 doctors, Mexico's medical workforce
While healthcare in Mexico is generally of high quality, some
comprises 55% men and 45% women.
challenges persist:

Lack of equity in access to healthcare. As mentioned earlier, people

living in rural or low-income areas have less access to quality health
These data show that the healthcare industry in Mexico
services.
is growing and evolving quickly. However, it is
important to address the existing challenges for the industry
Another challenge is the scarcity of resources. Mexico's healthcare
to reach its full potential.
infrastructure is inadequate in many parts of the country, limiting the
capacity of hospitals and clinics to provide quality medical care.

Existing Challenges
The Mexican healthcare industry grapples with several challenges,
including:

ȯ Infrastructure
Healthcare infrastructure in Mexico faces shortages of hospitals,
clinics, and qualified medical personnel in many areas of the country.

ȯ Inequality
Access to healthcare in Mexico is unequal, with residents in rural or
low-income areas experiencing challenges in obtaining quality health
services.

ȯ Financing
The Mexican government spends less on healthcare compared to
most OECD countries.

)\TS1IH` 
 FUTURE OUTLOOK AND GROWTH
OPPORTUNITIES: HEALTH DIGITIZATION, TELEMEDICINE,
PERSONALIZED MEDICINE, AND A FOCUS ON PREVENTION

The outlook for Mexico's healthcare industry is positive, with
expectations of continued rapid growth in the market for
medical devices and technology. Increased investment
and ongoing job expansion contribute to a promising
future.
However, addressing existing challenges is crucial for the industry
to reach its full potential.
Healthcare Digitization
One of the primary growth drivers in Mexico's
healthcare industry is healthcare digitization. This transformative
process is reshaping how healthcare is administered,
providing new opportunities to enhance the quality,
efficiency, and accessibility.
Key examples of healthcare digitization in Mexico encompass:
care from specialists without the need to travel long distances.
Additionally, AI can assist doctors in diagnosing diseases with
greater precision and speed, while VR and AR technologies can
support physicians in practicing surgical procedures more safely.
Telemedicine
Telemedicine, a form of healthcare delivery, involves patients
receiving medical attention remotely through video calls, audio
calls, or text messages. This approach can be employed by
healthcare professionals, including doctors and nurses, to provide
a diverse range of services, such as:
• Medical consultations
• Patient monitoring
• Patient education

• Adoption of telemedicine, enabling patients to receive medical • Emergency care

care remotely.

• Utilization of artificial intelligence (AI) for diagnosing and Telemedicine has the potential to improve healthcare in Mexico
treating diseases. through multiple avenues. For instance, it can contribute to
enhancing the efficiency of healthcare by enabling doctors to
• Implementation of virtual reality (VR) and augmented reality see more patients in less time.
(AR) for medical training and patient education.
Personalized Medicine
Personalized medicine tailors healthcare to the unique needs of
each individual patient.
Healthcare digitization holds the potential to enhance medical
services in Mexico in several ways. Notably, telemedicine can
play a crucial role in reducing disparities in healthcare access by
allowing patients in rural or low-income areas to receive quality

12 Expo Med | 2023

Personalized medicine employs
genetic information, clinical data, and other
aspects to create tailored treatment plans
that are both more effective and safer.
This approach can assist doctors in rapidly
and accurately diagnosing diseases, and it can
aid in the development of treatments that
are more effective for individual patients.
Preventive Focus
A key strategy to improve the health of the
Mexican population is to focus on prevention.
Prevention is crucial in lowering the incidence of
chronic diseases like diabetes, hypertension,
and cardiovascular conditions, leading to
reduced illness and mortality rates.
Mexico's healthcare industry stands in a
robust position for future growth. Key drivers
of industry expansion include the
healthcare digitalization, telemedicine,
personalized medicine, and a strong emphasis
on prevention.
By addressing existing challenges, such as
inadequate infrastructure and inequality in
healthcare access, the healthcare industry in
Mexico can realize its full potential and
contribute to enhancing the health of the
Mexican population.
Expo Med | 2023 13
 BEST PRACTICES: IMPLEMENTING TECHNOLOGICAL
INNOVATIONS AND ENHANCING PATIENT CARE

Healthcare has embraced digital transformation, yielding From Anywhere at Anytime

successful cases that combine innovation, technology, and best
practices to enhance patient care.
Deloitte's executive summary identifies cost-effective innovations
in healthcare, including 3D-printed devices, Next-Generation
Sequencing (NGS), immunotherapy, Artificial Intelligence (AI),
Point-of-Care Diagnostics (POC), Virtual Reality (VR), biosensors,
and Telehealth.
Technological advancements have facilitated monitoring,
operations, consultations, and tests from any location, in contrast
to the previous limitations tied to laboratories or clinics.
Point-of-Care Diagnostics (POC) play a pivotal role in expediting
and enhancing patient examinations, making them more
convenient in various settings such as a doctor's office,
ambulance, hospital, or even at home.

In Mexico, various healthcare institutions have effectively
implemented these technologies. The Regional High Specialty
Hospital "Ciudad Salud" in Chiapas utilizes 3D printing to improve
processes in maxillofacial surgery, cardiology, and orthopedics,
resulting in reduced intervention times and errors.
POC home tests, widely available today, include blood glucose,
pregnancy, and HIV tests. Notably, some medical devices and
diagnostic companies are developing POC tests for cancer
markers, tuberculosis, strokes, and other conditions.

Such technology facilitates precise measurements of the

operating area, providing professionals with a 3D visualization of
the surgical site, which was previously only possible in a digital
format.

In terms of genome sequencing, institutions like the "Federico

Gómez" Children's Hospital in Mexico City have adopted this
technology, being the first institution to use the NexSeq 500
human genome sequencer to detect genetic diseases and tumor
alterations.

Tec de Monterre y, in collaboration with FEMSA, recently

inaugurated the Tec BASE Genomic Sequencing Laboratory,
benefiting students, researchers, and the private healthcare
industry.

On the AI front, Hospitales MAC stand out. In late 2022, they

introduced an AI-powered hemodynamics room, benefiting
patients with critical cardiovascular issues. Using Edison
technology, the first of its kind in Mexico, the facility streamlines
processes with semi-automatic measurements, enhancing
efficiency for both patients and medical professionals.

14 Expo Med | 2023

The KardiaMobile is a notable example, a personal
electrocardiogram (ECG) device capable of detecting
atrial fibrillation, tachycardia, and bradycardia in just 30
seconds. By monitoring the heart's electrical activity through a
smartphone application, the device obtains data when the
patient places their fingers on electrodes. The results are stored
and easily sent to the doctor within seconds.

Another success story is Johnson & Johnson Medical Devices

in Mexico, openly acknowledging their use of Virtual Reality (VR)
for staff training. Beginning in 2019, employees in the Medical
and Surgical Devices division embraced VR, aiming for
global implementation to revolutionize surgeons' training,
reshape frontline healthcare, and contribute to enhanced
patient outcomes.

In this technological era, leveraging social networks to enhance

the patient experience is crucial. Patients frequently turn to the
internet and social media to seek specialists for follow-ups
or medical appointments.

Doctoralia, a global platform that connects patients with

healthcare professionals, conducted a survey across Mexico,
Brazil, Italy, Spain, and Poland, revealing that 40% of Mexican
respondents explore health-related topics online annually,
22% rely on reputable platforms, and 18% seek answers
Smartwatches are among the numerous inventions in this field,
through social media. This platform serves as a success case,
gaining widespread recognition. Distinctly, during the pandemic,
echoing the practices of numerous experts connecting and
standout efforts emerged from graduates in Physics,
communicating with their patients via social networks.
Mathematics, Biology, and Chemistry at the
National Autonomous University of Mexico (UNAM, in
Biosensors and trackers, equipped with activity-monitoring
Spanish). They developed a cost-effective biosensor for
technology integrated into clothing, accessories, and
Covid-19 detection through PCR tests, asserting its precision
devices, offer consumers and doctors a simple means of
equal to that of similar tests.
monitoring health.

This initiative facilitated the administration of 500 to 800 daily

tests, providing same-day results. The chemistry team dedicated
daily efforts from 9:30 am to 3:00 pm to sample collection, with
the PCR process extending past midnight.

The test results not only indicated whether the patient was
positive or negative but also included the cycle threshold value,
representing the amount of virus in the infected person,
classified as high, medium, or low—an uncommon detail in most
laboratories.

Finally, in convenient care and telehealth, StartUs Insights

analyzed 907 telemedicine startups, highlighting Lumed as a
successful Mexican project. Lumed provides telemedicine
solutions for healthcare professionals, enabling real-time
interactions between patients and doctors from different
locations.

Expo Med | 2023 15

 CHALLENGES AND OPPORTUNITIES
IN THE MEXICAN HEALTHCARE SECTOR

In recent years, the healthcare industry has faced

challenges on a global and national scale. Yet, technology also
presents opportunities. While the specifics differ from country to
country, what is the landscape in Mexico? What opportunities
can be seized, and what are the primary challenges at present?

Guillaume Corpart, Founder & CEO of Global Health Intelligence,

a leading health market research company in Latin America,
shared insights to address these questions.

Initially, he highlighted that health challenges differ between the

public and private sectors in Mexico. In the public sector, a key
obstacle is the absence of a unified vision, with multiple
institutions like IMSS, ISSSTE, Semar, Sedena, and Pemex
operating differently.

The CEO emphasized a limitation: the healthcare sector is often

perceived as an expense rather than an investment in fostering a
healthy and, consequently, productive society.

"Productivity relies on a healthy society. Sadly, the healthcare

sector is often perceived as an expense rather than an Guillaume Corpart
investment in productivity—all part of the broader vision," he
stated. Founder & CEO
Global Health Intelligence
While acknowledging the Mexican government's initiative to
encourage the use of local companies in health goods
production, especially medical equipment, Corpart stressed the
need for additional momentum to meet quality standards,
productivity levels, and necessary resources for technological
development. “Productivity relies on a healthy society.
Sadly, the healthcare sector is often
"In Mexico, we should focus on creating knowledge clusters perceived as an expense rather than an
instead of solely emphasizing the 'Buy Mexican' approach. I also investment in productivity—all part of the
sense a slight impediment within the public sector," he noted. broader vision”

Opportunity Areas for the Private Sector

The CEO pointed out a significant challenge in the sector, highlighting the prevalent trend of small-scale private hospitals, usually with
ten beds or fewer. However, these facilities are primarily geared towards addressing cases of lower complexity, leaving other medical
conditions overlooked.

In his words, "To truly enhance the quality of healthcare in the private sector, we require more hospitals equipped to handle a larger
volume of patients, diverse cases, and, consequently, address the needs of individuals with complicated or complex conditions."

16 Expo Med | 2023

He also mentioned an opportunity area in non-profit private
hospitals within Mexico.

"I believe the top hospitals in Latin America, often non-profit

private institutions, prioritize addressing societal health issues
over exploiting a patient's situation for maximum profit. Their
approach ensures sufficient profit for ongoing investments in
training healthcare professionals, high-tech equipment, and
resolving cases that genuinely contribute to the well-being of the
country."

Furthermore, Corpart suggested fostering collaboration between

the public and private sectors by identifying shared interests.

"For instance, addressing concerns like obesity, promoting a

healthy population regarding people's diets, exercise habits, and
more. I believe these health promotion campaigns benefit
society at large, are cost-effective, and yield a substantial return
on investment. Additionally, encouraging early detection of
cancers, such as breast cancer and prostate cancer, among
others, is something we could promote within our society," he
explained.

Infrastructure, Data, and the Future

Guillaume Corpart expressed his view on Mexico's healthcare
infrastructure, noting its strength. He believes that, rather
than constructing more hospitals, the focus should be on
optimizing the efficiency of existing ones.

Corpart advocates for the integration of technologies to reduce

wait times, implement telemedicine, and establish a patient's
health record linked to their Tax Registration Number or CURP.
This approach applies across both public and private healthcare
institutions, ensuring seamless patient ownership of their health
records.
On these topics, the specialist stressed that the Mexican
government needs a clearer vision and openness to
new technologies in the future of the healthcare sector.
One notable limitation is the diverse international coding
systems used for surgical procedures.
In Mexico, different codes are applied in each public health
system; for example, IMSS uses ICD-9, ISSSTE uses ICD-10,
leading to difficulties in tracking the annual frequency of
procedures in the public sector. This challenge extends to the
private sector, where companies are not obligated to report
procedures with specific codes.
"Every procedure must be reported because it's crucial for society
to understand the prevalence of issues like heart attacks in
Mexico. Currently, we lack the necessary data to detect such
problems. Until we prioritize this and acknowledge the need for
transparency, progress will be limited," he emphasized.
The interviewee sees potential for the future in a business model
specializing medium-sized hospitals in the private sector with 50
to 80 beds.
"I see a great opportunity for this segment to evolve into centers
of excellence and specialty hubs, focusing on areas like cancer or
nephrology. This specialization not only enhances knowledge and
human resource efficiency but also improves technological and
specialty efficiencies," he anticipated.
The CEO foresees a positive shift in the public sector during
the upcoming six-year term, expecting an augmentation in
the health budget.

Expo Med | 2023 17

 SUSTAINABILITY AND SOCIAL
RESPONSIBILITY
In the healthcare sector, some initiatives have not only provided
excellent patient care but have also become standout examples
of companies committed to sustainability and social
responsibility.
Social consciousness has increased in recent years, with a focus
on both employees and environmental impact, both externally
and within companies.
To meet these goals, healthcare institutions and companies have
increasingly adopted corporate social responsibility (CSR)
strategies. These practices offer several benefits, including
sustainable business generation, improved labor market
conditions, more productivity, enhanced energy efficiency,
promotion of values in employee treatment, customer loyalty,
and better reputation.
In Mexico, certain healthcare companies have been recognized
for their CSR efforts. Notably, Hospitales MAC secured the 117th
position in the Grupo Expansión 2022 Ranking of Responsible
Companies, standing out as the only healthcare
company acknowledged in the list.
The ranking assessed companies using ESG criteria, including
interactions with clients, the community, suppliers, and corporate
governance. It also considered compliance with standards,
environmental measures, resource usage, waste management,
greenhouse gas emissions, and renewable energy
implementation.
Another noteworthy case is Hospital Ángeles León , which
participated in the Carbon Neutral Program, an initiative by the
City of León.
This program aims to raise awareness of environmental
degradation and engage with companies to reduce their carbon
footprint.
18 Expo Med | 2023
The hospital's initiatives, like transitioning to energy-efficient
lighting and reducing their carbon footprint by 20% ((from 2,950
tons of CO2 to 2,330 tons), demonstrate their commitment to
sustainability. Their efforts also include 500 tree donations, green
spaces on-site, and active paper recycling (13,727 kg), with
additional involvement in maintaining local infrastructure.
Additionally, Centro Médico ABC has been at the forefront in
environmental responsibility for over a decade, aiming to mitigate
the climate footprint for the benefit of patients, employees, and
the general population.
The institution has implemented ecological spaces such as urban
gardens, expanded green areas, and green walls
producing fertilizer-free varieties of vegetables. Regarding water
conservation, the Santa Fe Campus features an artificial lake with
treated water from the hospital, used for irrigation. The campus
also employs water-saving devices, solar panels, automatic lights,
hybrid boilers using diesel and natural gas, and implements
proper waste disposal.
Bayer, a pharmaceutical company, exemplifies commitment to
social responsibility by supporting healthcare professionals from
their student years, with investments in science, social needs,
health, and community projects.
Through the Bayer Science & Education Foundation, the company
supports young scientists with chairs, research scholarships, and
awards in various scientific fields. Some notable awards granted
by the foundation include the International Bayer Early Excellence
in Science Award, Otto Bayer Award, Hansen Family Award, and
the Bayer Thrombosis Research Award.
These examples showcase how healthcare institutions in Mexico
are not only providing excellent service but also embracing
sustainability and social responsibility, contributing positively to
both external communities and internal practices.
REGULATORY LANDSCAPE
IN MEXICO'S HEALTHCARE SECTOR
Is the Modification to the Health Supplies
Regulation a Positive Change?

The presidential decree modifying the Regulations for Health

Supplies (RIS, in Spanish) aims to streamline administrative
processes, eliminate bureaucratic redundancy, optimize health
registration extensions, strengthen health surveillance,
and promote innovation in health supplies. This is intended to
result in a more efficient regulation aligned with international
standards.

Some key points of this decree include:

• The Federal Commission for Protection against Health Risks

(COFEPRIS, in Spanish) accepts English-language documentation
for Health Authorization without translation, requiring
authentication and legalization of documents from other
countries' authorities.

• Products labeled for the public sector must be distinguishable

from those in the private sector.

• The Biotechnological Products Evaluation Subcommittee is

removed from the approval process for biocomparable
biotechnological drugs, with the New Molecules Committee's
opinion deemed sufficient.

• Clinical studies from the country of origin may serve as

evidence to initiate the registration process for biocomparable
biotechnological drugs. However, when seeking the extension of
Sanitary Registration, clinical studies conducted in Mexico must
be provided.

• The first extension request is due five years after registration

and should be resolved within 120 days.

• To secure the initial Sanitary Registration extension, regulatory

authorities will monitor all inputs, considering their performance
during the initial market years.

The positive impact of this decree on the healthcare sector is

anticipated to enhance the quality, safety, and efficiency of
health supplies by prioritizing their continuous review and
monitoring throughout their market lifespan.

The measures also aim to reduce processing times and costs by

accepting documents in English and eliminating unnecessary
requirements. They also seek to facilitate access and availability
of health supplies by streamlining the renewal of sanitary
registrations, ultimately preventing cyclical shortages.

Expo Med | 2023 19

 Acknowledging COFEPRIS's efforts, the National Chamber of the
Pharmaceutical Industry (CANIFARMA, in Spanish) supports
measures ensuring quality, safety, and efficiency throughout
the lifecycle of health supplies. CANIFARMA also recognizes
COFEPRIS's role as an internationally recognized regulatory
authority and its commitment to updating and
simplifying the regulatory framework to promote innovation
and competitiveness in the sector.

Liomont Laboratories Launched its First

Biocomparable Biological Cancer Medication

This year, at its Ocoyoacac facility in the State of Mexico,

Liomont Laboratories introduced its first biocomparable, Effivia,
which inhibits the growth of solid tumors and their spread
to other organs (a phenomenon known as metastasis). In
some cases, it helps reduce the tumor size, eventually
allowing for surgical removal.

COFEPRIS approved this medication in Mexico in 2021, providing

two years of experience supporting Mexican patients in their
cancer treatment across various institutions such as the Mexican
Social Security Institute (IMSS, in Spanish) and the National
Cancer Institute (INCan, in Spanish), benefiting around 1,500
patients.

Effivia has also received approval from other regulatory agencies

worldwide, including the United States Food and Drug
Administration (FDA) and the European Medicines Agency
(EMA).

It will be available in the private sector starting this year, meeting

the increasing demand for products to address catastrophic
diseases like cancer at a lower cost than current alternatives,
enabling a greater number of patients to receive treatment.

20 Expo Med | 2023

CLOSING
THOUGHTS

The report "Mexico's Healthcare Industry: A Sector on the Rise" presents a positive outlook for the
healthcare industry in Mexico, highlighting its growth and significant opportunities for the future.

Key Findings

Key findings of the report include the following:

• The healthcare industry in Mexico is a thriving and dynamic sector, making up 7.7% of the
country's GDP.
• Its growth is driven by demographic shifts, including an aging population and a rise in chronic
diseases.
• The Mexican healthcare industry is capitalizing on the increasing investments in technology and
innovation.

Recommendations

The report suggests several measures to enhance the healthcare industry in Mexico:

• Boost government investment in healthcare.

• Facilitate collaboration between the public and private sectors.
• Support advancements and research in healthcare.

The report's recommendations are crucial for the continuous growth and improvement of the Mexican
healthcare industry.

Expo Med | 2023 21

 REFERENCES

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Instituto Nacional de Estadística y Geografía (INEGI): “Indicadores económicos. Sector salud” (2022)
“Conociendo la industria de dispositivos médicos” (2023)

Asociación Mexicana de Industrias de Dispositivos Médicos (AMID): “Industria de dispositivos médicos es exportador estrella;
ahora quiere vender más en México” (2023)

Grant Thornton: “La industria de la salud en México y el mundo” (2023)

Statista: “El sector de la salud en México – Datos estadísticos” (2023)

Organización para la Cooperación y el Desarrollo Económicos (OCDE). (2022). Panorama de la salud: México.

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22 Expo Med | 2023