With a population of more than 100 million people, the Mexican market for medical equipment is the second largest in Latin America after Brazil.
28/02/2008 ::
Index:
In general
At around US$ 2.2 billion estimated worth in 2007, the market is similar in size to Australia and Korea.
The market is dominated by imported products, principally from the USA; nevertheless US suppliers’ share of the imports fell in 2005 to 62% compared to 70% in previous years.
The Mexican health care system is currently involved in a modernization process, which is driving changes in both public and private institutions.
Patients are becoming more quality-minded and more aware of the cost-value relationship in services. This implies a growing demand for better and more sophisticated services.
The Mexican health care system is comprised of three branches: Private Institutions (10 million users), Social Security (50 million users), and Health Ministry Hospitals (45 million users). Totally the Mexican State provides healthcare to approx 90% of the population.
Technological infrastructure
Technological infrastructure in the Mexican health care market varies widely between different institutions and between the private and public sector.
Many public hospitals are old and lack the necessary funding to purchase equipment and modernize existing facilities.
In contrast, due to the much higher per capita spending in the private sector, some of the private hospitals have the latest state-of-the-art equipment, with technological standards comparable to Western Europe and private hospitals constantly update their equipment in order to attract high-end patients.
How to enter the health sector
Becoming a provider to the public sector is a long term commitment. The tender process is complicated and competition is steep, since most large, global companies participate due to high potential rewards
In order to participate in public tenders, companies must have:
- Enough resources for the entering phase and for delivering 6 months without payment.
- Product registered by the Health Ministry.
- Solid technical training for distributors and sales representatives who are likely to handle more than one product/brand.
1 step Clarification of doubts related to every detail of the tender process is given to companies interested in selling to the public sector. Also, information on the search for products is handled out.
2 step The second phase is initiated when companies hand in their technical and economical proposals to the public sector. A committee analyses the proposals and accepts the offers that best fulfil the criteria.
For private costumers, product complexity, price and volume determine sales approach.
Advanced devices are sold based on the specialist’s preference, while low-end devices are sold based on cost.
Registration
According to the free trade agreement, Norwegian products enter Mexico without duties. However, registration is required for pharmaceuticals, medical equipment, suppliers and products containing toxic substances. A Health Ministry registration number must appear on the label of each product in order to authorize its importation.
Requirements according to law
- The scientific evidence must permit conclusions concerning the effect of the technology on
health outcomes.
- The product must improve the net health outcome.
- The product should be as beneficial as any established alternatives.
- The improvement must be attainable outside the investigational settings.
Identified key factors of the Mexican market: ( som intern lenke?)
Identified key factors to keep in mind when entering the Mexican market:
STRENGTHS
Large Population
Saturation of public health institutions has boosted the activities of private practitioners and hospitals
Large number of medical institutions and schools
Patients looking for state-of-the-art treatment
Healthcare reform under way
WEAKNESSES
Highly fragmented
Bureaucratic healthcare system
Lack of trained personnel
Low per capita health expenditure (655 USD)
Source: Swedish Trade Council