Health
From The Report: Mexico 2014
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In a little more than a decade since the introduction of the Popular Health Insurance Scheme, Mexico has made vast strides in extending coverage and is now closer than ever to attaining universal coverage. Nonetheless, rapidly changing demographics have boosted demand for medical services and put significant pressure on the sector, which is now faced with the task of increasing capacity to effectively meet health care needs, while expanding access in rural and remote areas where infrastructure is lagging. But even though health expenditure has increased in the past few years, at 6.3% of GDP it remains below the OECD’s average of 9%. The past few years have also seen a marked expansion of the private sector, along with significant growth in sub-sectors such as pharmaceuticals, medical devices and medical tourism. A sector reform already announced for 2014 is expected to increase integration and reduce the fragmentation that has beset the sector.

Articles from this Chapter

Overview

Change for the better: The expansion of insurance coverage looks set to shake up the sector
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The introduction of the Popular Health Insurance Scheme (Seguro Popular de Salud, SPS) in 2003 redefined Mexico’s health sector by providing public coverage, albeit limited, to half of the population, which previously had no protection. In a little more than a decade since the introduction of the SPS, Mexico has made vast strides in extending coverage and is closer than ever to attaining universal coverage. Nonetheless, rapidly changing demographics have boosted demand for medical services and put significant pressure on the sector, which is now faced with the task of increasing capacity to effectively meet health care needs, while expanding…

Analysis

Taking their meds: Regulatory changes have shifted the composition of the market
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Generating revenues of $13.6bn in 2012, Mexico’s pharmaceutical industry is among the 15 largest in the world, second only to Brazil ($16bn) in Latin America. According to ProMéxico, the country’s investment promotion agency, the pharmaceutical industry accounts for 1.2% of GDP, 7.2% of manufacturing GDP and generates 80,000 direct and 300,000 indirect jobs. The pharma market is attractive for several reasons, including the size of the domestic market, which registers the highest drug spend as a percentage of total health expenditure, 28.3%, among OECD members. Moreover, Mexico’s manufacturing capacity coupled with a strengthened regulatory…

Analysis

Tourist hub: Medical tourism continues to expand, attracting 1m visitors in 2013
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Attracting 1m medical tourists in 2013, Mexico has claimed the number two spot in the global medical tourism industry, behind only Thailand (1.2m). According to the Ministry of Tourism (Secretaría de Turismo, SECTUR), the industry reached $2.84bn in revenues, prompting the current administration to define a strategy to improve the country’s international competitiveness. With advantages including proximity to the US, attractive prices and coherent government strategy, the segment is set for continued growth. EXPANSION: The medical tourism industry has been expanding consistently since 2006, when it was valued at $1.55bn. In 2013 industry…