The demand for quality healthcare services in Latin America continues to grow, but the supply of services has not kept pace, resulting in significant gaps in access. Governments are seeking innovative ways to expand their networks of partners and improve access to healthcare services.
Public-Private Partnerships (PPPs) have become an attractive option for expanding healthcare services while requiring only limited up-front capital investment from the public sector.
In recent years, the leading causes of death in many Latin American countries have shifted from communicable diseases and accidents to chronic and non-communicable diseases.
Treating these chronic illnesses requires additional healthcare resources and an increase in expenses. Despite the challenges posed by the COVID-19 pandemic, many Latin American countries have shown resilience and demonstrated strong economic performance. The projected annual growth rate for the coming years varies across different regions and countries, but it is generally expected to be in the range of 3 per cent to 4 per cent. The expansion of formal employment opportunities in some countries has contributed to an increase in healthcare coverage.
Several countries, including Chile, Colombia, and Mexico, have taken the initiative to implement healthcare reform measures to achieve universal healthcare coverage. PPPs are seen as a promising approach to expanding access to quality healthcare services in the region. Effective PPP frameworks, comprehensive evaluation frameworks, and risk mitigation strategies are essential for ensuring their success.
Colombia and Mexico are cited as having more favourable healthcare PPP markets due to stable economies, expanding healthcare coverage and infrastructure investment, formal PPP legislation, and a favourable political environment.
Overall, the emergence of healthcare PPPs in Latin America offers a promising approach to expanding access to quality healthcare services. However, their success will depend on effective frameworks and strategies, as well as favourable market conditions and political will.
Overview of healthcare funding in Latin America
BRAZIL
- Primarily funded by the government through taxes.
- Public healthcare system called Sistema Único de Saúde (SUS).
- Private healthcare system is available for those who can afford it.
- Funded by private health insurance plans and out-of-pocket payments.
COLUMBIA
- Healthcare is financed through a mix of public and private funding sources.
- Reforms to expand coverage and improve the efficiency of the healthcare system.
- Universal healthcare system called SGSSS.
COSTA RICA
- Financed primarily through taxes and social security system contributions.
- Government reforms to increase spending and improve access to services.
- Establishment of a national health information system.
- Expansion of primary care services.
CHILE
- Healthcare is partially financed by private health insurance plans, out-of-pocket payments, and employer contributions.
- Universal healthcare system called FONASA.
- Reforms to increase public spending and reduce out-of-pocket expenses.
HONDURAS
- A mix of public and private funding sources.
- Taxes.
- Social security contributions.
- Out-of-pocket payments.
- Government reforms to expand coverage and improve efficiency.
- Establishment of a national health insurance system.
- Expansion of primary care services.
MEXICO
- Healthcare is provided through public and private systems.
- Public system is divided into Seguro Popular and IMSS.
- Private system is available for those who can afford it.
- Reforms to expand coverage and improve the quality of services.
PERU
- A mix of public and private funding sources.
- Taxes.
- Social security contributions.
- Out-of-pocket payments.
- Reforms to expand coverage and improve the quality of services.
- National health insurance system.
- Health technology assessment agency.
Discover in-depth findings in the ‘Key Insights from Latin America’s Healthcare Public Private Partnerships (PPPs)’ report. Download the report here.
This article appears in Omnia Health magazine. Read the full issue online today.
