The Access Equation: Innovation Driving Healthcare Reach

Mexico’s population is being burdened by underspending the healthcare system, which strains the finances of individuals. With high out-of-pocket expenses and uneven access across the country, innovation and collaboration are increasingly seen as key to bridging gaps in coverage and quality of care. 

“There is innovation in Mexico, but equitable access remains a challenge. Innovation must be directed and adapted to meet the needs of patients,” says Jaen Velázquez, Director of Strategy and Business Development, Siemens Healthineers.

Healthcare in Mexico continues to carry a heavy financial burden for households. Out-of-pocket costs in Mexico are more than double the OECD average. Between 2018 and 2024, out-of-pocket health spending rose 41.4%, with average quarterly household expenses increasing from MX$1,135 (US$60.79) to MX$1,605 (US$85.99), reports INEGI. 

According to the Mexican Association of Insurance Institutions (AMIS), many families are now spending more than one month of their income on medical care, averaging over MX$9,500 (US$507). This financial pressure is compounded by low government spending, as Mexico invests only 5.4% of its GDP in healthcare, well below the OECD average of 9.2%. These challenges highlight the urgent need for public-private collaboration that expands access and strengthens healthcare delivery nationwide.

“Next year’s health budget appears likely to remain very challenging,” says Héctor Valle, President, FUNSALUD. 

Expanding Access to Healthcare

Inequality, insufficient resources, and persistent public health issues continue to restrict coverage. However, the private sector can play a crucial role in expanding access, and its level of engagement will determine whether health systems remain reactive or evolve into resilient ones, according to the World Economic Forum. Its contributions can take many forms, acting as a funder, implementer, or innovator. Funding is particularly relevant in contexts with limited public budgets, such as Mexico. 

In Mexico, Public-Private Partnerships (PPP) have emerged as an important mechanism for advancing healthcare innovation. These collaborations not only enable the development of new products and services but also promote innovative approaches to organizational management and processes.

Different private sector stakeholders keep working to continue raising the level of care in Mexico. For example, Lilly Latin America has many years of experience in diabetes and is entering the field of obesity. The company is exploring alternative methods of administering GLP-1 medications beyond injectables, with the goal of achieving scalable production to reach a wider population, explains Karla Alcazar, President and General Manager, Lilly Latin America.

Insurance companies are also stepping up. “Our challenge is to create products that complement the system and support patients from the moment of diagnosis,” says David Sánchez, Director of Health Claims, AXA Mexico.

However, the private sector’s efforts alone are not sufficient as for medical innovation to reach patients, collaboration among all stakeholders in the healthcare ecosystem is essential, reports AMIIF.

“There is significant opportunity for public-private partnerships. We work to mobilize patients as early as possible to prevent them from reaching the healthcare system with high costs and to ensure they still have the possibility of being cured,” says Alcazar. 

The private sector is introducing a range of initiatives. Alcázar highlights the need for an ambitious continuing medical education plan to standardize knowledge, especially among primary care physicians. Meanwhile, Velázquez suggests launching pilot projects focused on Mexico’s most prevalent diseases to evaluate potential savings, always guided by data. Also, Sánchez stresses the importance of designing products that complement the public system, while promoting public policies for cost transparency and regulations to prevent malpractice.

“We need to find the spark that will allow us to transform the healthcare system,” says Valle.