Radiology Challenges in Mexico and Latin America
The radiology sector in Mexico and Latin America is at a critical juncture. On one hand, the demand for diagnostic imaging studies is growing rapidly; on the other, insufficient equipment, limited investment, and the need for efficiency create a complex landscape.
- Hospitals and clinics are overwhelmed: The demand for imaging studies increases by more than 10% annually, but there is not enough infrastructure to keep up.
- Equipment shortage: Mexico has one CT scanner per 80,000 people and one MRI per 250,000, compared to one CT scanner per 20,000 and one MRI per 25,000 in the United States.
- Insufficient government healthcare spending: Mexico invests only 5.4% of its GDP in healthcare, less than the regional average of 8.8%, and far below countries like Brazil (9.6%) and Argentina (9.5%).
These challenges are not exclusive to Mexico. Brazil and Argentina, despite higher healthcare spending, also face insufficient equipment and overwhelmed workflows. Mexico, with its austerity policies and historical public sector shortcomings, feels the pressure more acutely.
Bayer’s Role in the Radiology Landscape
Daniel Fonseca, Radiology’s Latin America leader at Bayer for three years, explains how the company is a significant player in the segment by offering solutions to maximize available resources.
- Bayer’s Radiology division, including contrast media, injectors, and software, generates €2 billion annually globally; Latin America contributes 8% of these revenues.
- In Mexico, this market is worth €60-70 million (approximately 1.52 billion Mexican pesos) and is growing at a double-digit rate.
Bayer’s key strategy is Workflow Solutions, a software launched in Mexico two years ago that standardizes processes, reduces contrast media usage, and shortens study times. This allows hospitals to serve more patients without investing in new equipment, crucial for tight budgets. Additionally, Bayer offers consulting and data analysis tools to identify areas for improvement.
While Bayer’s software can decrease contrast media usage, more equipment investments are necessary to meet the growing demand. The company focuses on building long-term relationships with hospitals for loyal customers. Competitors include Bracco (Italy), Guerbet (France), GE Healthcare (US), and emerging players from China and India offering lower prices.
The Future of Radiology in Mexico and Latin America
The global radiology market is worth €50 billion, with Bayer’s segment (contrast media, injectors, and software) accounting for €5 billion. Latin America’s growth is significant, but it remains a small fraction of the global pie.
Bayer sees ample potential and has given Latin America its own region within the global structure. However, the company does not plan to establish production plants in the region for now, as its European and US factories meet demand.
In the future, efficiency will be crucial but insufficient. Mexico and other regional countries must invest in more radiology equipment to close the gap. Bayer’s solutions can alleviate pressure but don’t address the fundamental issue: without more public resources, the healthcare system will remain weak.
Key Questions and Answers
- What challenges does radiology in Mexico and Latin America face? The sector struggles with overwhelmed hospitals, insufficient equipment, and limited government healthcare spending.
- How is Bayer contributing to the radiology landscape in Latin America? Bayer offers tailored solutions, such as Workflow Solutions software, to help hospitals maximize available resources and improve efficiency.
- What is the future outlook for radiology in Mexico and Latin America? While Bayer’s solutions can help, more public investment is needed to address the structural challenges and strengthen the overall healthcare system.
