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Commited to the Future of Health

Carlos Jiménez - B. Braun Aesculap
Director General

STORY INLINE POST

Wed, 09/06/2017 - 15:25

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Q: What were B. Braun’s growth numbers in 2016 and what challenges did it overcome?

A: We grew 25 percent in 2016 between the two divisions, while Aesculap alone grew by over 30 percent. This growth was achieved despite the government’s budget cuts and new purchasing habits. We participate in few categories in the public tenders as the National Formulary is increasingly targeting generalized products, which hurts us. Sometimes, products with current technology and quality compete against products with old technology that are cheaper to produce, which limits our chance of successful participation in certain areas. Of the 600 or so categories in medical devices, we participate in only seven. It is not that all our products are state-of-the-art, but a 10-15 year-old product is also at a disadvantage because the required specifications for the product may be 30-40 years old. I do not believe this will change anytime soon because the public sector is working on a reduced budget.

Q: What impact do you expect hemodiafiltration will have in Mexico? How does it differ in performance from hemodialysis?

A: Hemodiafiltration – a technology that combines hemodialysis and hemofiltration – was launched here at the end of 2016. Compared with hemodialysis, the machine purifies the blood of urinary toxins and also filters out smaller particles. The speed of flow can be modified to better respond to patient needs. This is an easier therapy for patients than hemodialysis and the results are better. This technique could help around 65,000 people in Mexico that are being treated with hemodialysis. However, there are between 80,000 and 100,000 more people that are undergoing peritoneal dialysis.

Although the associated costs are higher because more advanced equipment is required, at the moment neither insurers nor the public sector recognize a distinction between hemodialysis and hemodiafiltration, so hospitals are bearing the extra costs themselves and to provide better care to patients. It is covered separately for patients in private care because the supplies are billed separately. Six clinics are now using hemodiafiltration equipment. We do not sell the equipment but loan it as the machine is much more expensive than hemodialysis technology.

Q: What are the main surgical trends permeating Mexico’s operating rooms?

A: There is a strong focus on integral services and on costreduction in public centers. Previously, criteria stated that to offer integral services, one had to provide equipment of a certain technological level and age but these specifications have been removed to reduce costs. Now, devices can be reused but the regulation does not specify how to reprocess certain pieces, such as disposable devices. We are still waiting on standards: how to wash them, for how long, with which substance and which chemicals and how to perform functionality controls. This has led to uncertainty regarding cost. For example, if a service costs MX$100 million (US$5.5 million) one year and MX$80 million (US$4.4 million) the next, ostensibly that means MX$20 million (US$1.1 million) in savings. But if products are reprocessed, the internal costs generated to do so should be taken into account. We do not know what the true savings are.

As for the private sector, insurers are putting pressure on hospitals to not pay high increases in the cost of medical care. Hospitals are allowing for increases of 3-4 percent due to inflation but most products are imported in US dollars or in euros. The increase in prices hospitals negotiated with insurers was a maximum 8 percent, so we are reaching a point where they cannot absorb these costs. Possible solutions might be found by having more efficient processes and through innovations, products and patient treatments.

Q: Innovation has always been at the forefront of B. Braun’s operations. What is next for the company?

A: We have many product lines to launch, including a prosthetic that helps maintain bone structure. It will be available in 2017 and will enter the National Formulary so that public patients can have access. We will also launch products intended for intensive care. Our technology of continual therapy is connected to a patient for a few days to slowly clean the blood and requires little effort from the patient. This was a key theme in the World Nephrology Conference, held in Mexico City in April 2017. We are also building an auditorium for the Aesculp Academy and B. Braun will participate in over 40 congresses in 2017, demonstrating our commitment to the industry.

Q: How do solutions such as B. Braun Knowledge Center and the Academy help you manage a more successful business?

A: The Aesculap Academy is a foundation that was created 20 years ago and is independent of B. Braun. The concept is to bring health professionals, specialized education and knowledge to execute patient treatment in a safer manner and to achieve better patient outcomes. B. Braun supports the Academy through donations. The Academy has a grant system and offers paying courses, which helps it maintain its autonomy. B. Braun started the Academy but now it has other partners such as the Mexican Academy of Surgery, which has developed programs with the Aesculap Academy.

The Knowledge Center responds to a need to better train our staff members in understanding processes, knowing products and learning about authorization processes. This is the basic platform for teaching B. Braun employees how to work well in the company.

Q: To what extent are you impacted by COFEPRIS deregulation of medical devices?

A: It is vital that deregulation happens, because it makes no sense that a medical spatula used to hold down a tongue has such high registration requisites. Technically, it is not dangerous in use nor complicated to manufacture. Deregulation is needed for these types of products. However, B. Braun would see no benefit from such deregulation because our product portfolio is much more precise and more impactful on patients. We do not manufacture a single product on COFEPRIS’ huge list of deregulated products.

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