Upcoming Challenges for the Healthcare Industry

Every year brings new challenges and opportunities for all industries. Many times, these include trends that have been developing for years. However, after COVID-19, the whole list of priorities is expected to transform. MBN spoke with leading consultancy firms like Deloitte, EY and Willis Towers Watson to understand the upcoming scenario for the healthcare industry post-COVID-19.

According to EY industry Leader for North Latin America Health Sciences and Wellness, Andrés Gavenda, Mexico has a great opportunity in transactional and acquisitional operations. “As a result of COVID-19, transactions in the healthcare sector have increased, especially regarding hospital and hospital supplier acquisitions. Right now, we have four transactions in the works, two in Mexico and two in Colombia. Moreover, many companies are interested in combining their service offering with digital tools that will add value to both parties. The sector has seen two recent alliances of this type, one between Farmacias Benavides and Cornershop to deliver medicine and another between Rappi and Sanofi just a couple of months ago.” He adds that the “new normal” is a current challenge for this industry and all others, detailing that EY has created a guideline to support companies for a safe return.

Xavier Ordoñez, Supply Chain Lead Partner at Deloitte Mexico, spoke about clients’ most frequent concerns regarding COVID-19, detailing that one of the first symptoms to appear was related to stock and supply chain disruption. “Even if many companies have stock systems that help them evaluate requirements, the pandemic situation demanded a thorough review of raw material, finished goods forecast and scenario planning,” says Ordoñez. Moreover, he explains that concerns are transforming along with the pandemic and the global and national context, saying that there have been new concerns regarding HR. “Many workers have been sent home due to risk of contagion, while others are returning to work in stages, which can lead to delays in production and distribution. Proper tracing of suspicious cases is also carefully evaluated.”

One of the upcoming opportunities that Ordoñez sees for the Mexican healthcare industry is in the generics sector. “In Mexico, production is dominated by the generics sector. While it would be very interesting to see more global production settle here, the main aspects of logistics, like accessibility to roads, ports and railway would be the main drivers to bring production to our country. Mexico is highly competitive as a manufacturer, as in all industries, and having the most accessible logistics will help develop and grow our pharma production.”

Insurance is another sector highly impacted by the pandemic. On this subject, Willis Towers Watson Health and Benefits leaders explained that “there are already figures showing that the insurance sector has started to sell more individual policies and almost all companies have COVID-19 coverage. For an individual, the highest amount the insurance sector has paid is MX$15 million (US$675,500), which no one can afford by themselves” said Omar Viveros, Leader of Health and Benefits. This scenario made the company seek for policy sustainability. “To achieve this, we work with each company to create a competitive benefits plan that fits its philosophy and culture, that offers good coverage for their employees and that is also sustainable over the long term and profitable for the insurance company” mentioned Eduardo Hori, Director of Health and Benefits. Willis Towers Watson executives further explained that this is a window of opportunity for the insurance sector, because people are now more aware and appreciative of their insurance policies, which could increase the number of insured people in Mexico.