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News Article

Government Creates New Decentralized Public Organization

By Rodrigo Andrade | Fri, 08/05/2022 - 15:53

The government of Mexico announced the creation of a new Decentralized Public Organization (OPD) that will focus on the administration of public healthcare resources. The new organization will be autonomous and have its own budget and independent legal status.

The new organization was first announced through the official Twitter account of the Ministry of Government (SEGOB), following a meeting headed by Adan Augusto Moreno, Minister of Government, with public functionaries.

It is unclear how the new organization will impact the Mexican Health Sector and INSABI, but specialists have expressed concerns on the subject. “It seems idle to create a new OPD when at the beginning of this six-year term they created INSABI to attend to the population without social security and even reformed the Health Law to include it and now it has fewer and fewer functions,” said David Sánchez Mejía, Partner, Cossío & Sánchez Consulting, to Animal Político.

This new organization seemingly reduces INSABI’s room for operation. During the first five months of 2022, it reduced its expenses by MX$26.1 billion (US$1.27 billion), a 15 percent decrease from previous year, according to data published by the Ministry of Finance and Public Credit (SHCP) as reported by MBN.

INSABI was also recently in the spotlight after reportedly receiving only 40.89 percent of the medicines requested by its hospitals, with 145 million pieces delivered as of July 25, 2022, from the 357 million requested at the beginning of this year, as reported by MBN. The expenditure in functional health, which includes all major health institutes in Mexico, the Mexican Institute of Social Security (IMSS), the Institute for Health and Social Security for State Workers (ISSSTE) and the Ministry of Health (SSA), accumulates a decrease of 5.1 percent mainly due to a cut in the budget for subsidies and transfers.

SHCP’s Public Finance and Debt Report for the first four months of 2022, showed that the Minister of Health had an approved budget of MX$59.84 billion (US$2.92 billion) but it actually spent MX$18.7 billion (US$911.35 million).

 

 

Photo by:   geraldoswald62
Rodrigo Andrade Rodrigo Andrade Junior Journalist & Industry Analyst