Health care panel

Ned Cabot and Stephen Thompson. (Image: Jorge Merino)

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Summary: Health Care Competitiveness in Latin America

By Mathias Mondino

As the region’s disease burden shifts and the middle class grows, the public and private sectors have numerous opportunities to innovate in the health care sector.

Speakers:

  • Steven Thompson, CEO Johns Hopkins Medicine International, VP Johns Hopkins Medicine
  • Ned Cabot, Government Lead, Cisco Systems, Inc.
  • Trevor Gunn, Managing Director, International Relations, Medtronic

Summary

On February 11, AS/COA hosted an expert panel on long-term growth prospects for the health care industry in Latin America. Participants talked about the opportunities in the burgeoning market such as telemedicine and the innovative culture that keeps pushing the industry forward. They explained that the growth of Latin America’s middle class has made the region hungry for better services. The experts reinforced the idea that the health care sector should be seen as a way to benefit the economy, trade, technology, labor, and development.

Latin America’s Growing Health Care Industry

Around 50 percent of health care expenditures in Latin America stem from the private sector, and this number continues to grow, panelists noted. With increased private sector participation and expanded public sector coverage, more Latin Americans receive health services today than ever before. Foreign direct investment in the health care sector is expanding; for example, United Health Care Group completed a partial acquisition of Brazil’s Amil healthcare company. Plus, the health sector is now one of the largest employers in the region. Panelists agreed that investing in health can lead to economic growth and development by reducing health care costs and increasing workforce productivity in the long term. According to Cisco’s Ned Cabot, $146 billion is at stake in the health care industry if assets and policies are not implemented wisely.

Evolving Health Challenges in the Region

The panelists explained that the nature of the disease burden in the region is changing from epidemics to chronic diseases, leaving the hospital-based health care system outdated and expensive to maintain. Governments should focus more on preventative care and utilize mobile delivery platforms to cut costs and increase efficiency, panelists noted. Cabot said telemedicine has been a “game-changer” since it has increased treatment efficiency and coverage to rural areas.

In order to be competitive and deliver high-quality services, the health care sector requires a stable framework in which to operate, such as transparent regulatory bodies, solid government policies, and a business-friendly environment, panelists said. They also explained that while regulation of the medical industry is important, sometimes it can hamper development. Medtronic’s Trevor Gunn said that to foment innovation, medical devices should be categorized and regulated differently from pharmaceuticals. He also noted that out of the 72,000 Medtronic suppliers, very few were Latin American businesses, and added that he would like to see more.

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