Massimo Pachón
Director General
Clinitas (Keralty)
View from the Top

PPPs Can Help Resolve System Fragmentation Hurdle

Wed, 09/05/2018 - 12:10

Q: Why did Keralty decide to come to Mexico?

A: All the work we are doing in Mexico is leveraged by our know-how and experience. It is not the first time that the group has shown interest in Mexico. We had already expressed interest in the country in the 1990s and again in 2014. We are convinced there is a need in Mexico for the provision of health services that truly address the basic health problems of the population.

Q: How does Clinitas’ experience in other countries help it to capitalize on the opportunities in Mexico?

A: The main challenge we have seen in Mexico is the health system’s fragmentation: IMSS is for formal workers and Seguro Popular is for those who are not formally linked to a job. The job market in Mexico is of a rotational nature, with people moving between formal and informal employment, which means that people also move between the different health systems.

In Mexico, our intention was to establish public-private work schemes in the health sector. However, we have found that while in Colombia the legislation promotes this initiative, in Mexico the legislation focuses on the opposite. There are no mechanisms for directing government resources to take advantage of specific private-sector services. The only approach we have seen for cooperation with the private sector is through Public- Private Partnerships (PPPs).

Q: In what niche of the Mexican healthcare industry does Clinitas expect to make a difference?

A: When we started two years ago, the idea was to work with services such as IMSS, ISSSTE and Seguro Popular. However, due to the legislative landscape, we are focusing on the private sector. All our efforts are directed toward the first level of care, which is what we call primary attention or clinical level. We are convinced that the best solution for health services is at the first level of service and prevention.

Q: Keralty’s business model has grown through different alliances. Do you plan to establish this same model in Mexico working with insurance companies?

A: We believe that the best way to reach the private sector is through insurance companies. Within the insurance sector, some companies have clearly defined the problem and the diagnosis, and we can work with them to provide the solution. That is why we are acquiring an ISES and working in partnerships with an important insurer in Mexico, because we believe that through it we can place preventive health products and create real prevention plans for the sector.

Q: How will Keralty manage the common situation in Mexico where patients constantly change their insurance company?

A: We believe that we need to construct our brand but this will take time. We know that when people try a model and youprovide the expected health services, people will return. In Mexico, the Major Medical Expenses policy usually does not cover the first level of care, general consultation and basic specialties; people have few options in the private health market and go directly to specialists, or to the pharmacy offices for minor ailments, whose volume of attentions already equals that of the IMSS. We know that if our model is successful, others will follow it. We hope that one day the country will have a wider market of medical networks, policies and solutions for the first level of care.

Q: How can Keralty’s business model help bring health and insurance services closer to the population?
A: Our main contribution can be to introduce real health solutions, both preventive and curative, in this first level of attention, guaranteeing quality services. We also need to be timely in how we solve people’s health needs, to think about patients, their families and their surroundings. We need to show that the privatization of health services is not bad. Mexico has a market for everyone and private players in the health sector are called to cover certain areas that the government cannot always guarantee.