Movers & Shakers: Healthcare in Latin America

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  1. 1. MOV E R SSHAKE RSHEALTHCARE IT IN LATIN AMERICAA CONVERSATION WITH INDUSTRY LEADERSAugust 2014We Accelerate GrowthCONNECTED HEALTH PROGRAM
  2. 2. MOVERS & SHAKERS2 All rights reserved 2014 Frost & Sullivan | www.frost.comInterviewed by Federico Baguear, Industry Analyst, Healthcare Latin AmericaIntroductionAn analysis of the Latin American Hospital Information System (HIS) market is showing some interesting and promisingresults. In 2012, the Latin American market reached $550 million and is expected to reach $1100 million in 2018 with acompound annual rate of 14.9%, as the region is now in a growth phase for health IT.Federico Baguear, industry analyst with Frost & Sullivan, interviewed CSC, everis and NoemaLife as part of the healthcareIT market trends analysis in Latin America.Guillermo Ramas is industry general manager for Southern Europe & Latin America within the Healthcare division of CSC.Ramas has been part of the management in companies such as Lawson, Agresso Spain, Agfa Healthcare IT and SharedMedical Systems. In 2008, he became iSofts healthcare director for South Europe and Latin America, a position he still holdsin CSC Healthcare after the fusion of the companies in August 2011.Mario Chao is healthcare partner and global director with everis, based in Mexico D.F. He has more than 20 years ofconsulting experience and 10 years in healthcare and government.Cristin Power has been general manager with NoemaLife Chile and Peru since 2011. He has 15 years of experience in IT.After obtaining a MSc in Image Processing at the University of Paris, Power returned to Chile to develop several projectsrelated to RIS, PACS, LIS and EMR.This Movers & Shakers interview focuses on five points centric to the current situation in Latin America: healthcare ITgrowth, challenges presented in system adoption, the public sector role, market needs, and strategies each company isapplying to access the market.Frost & Sullivan is honored to feature Ramas, Chao, and Power as part of its Movers & Shakers series, and thanks them forsharing their views and perspectives on the Latin American HC IT market.Guillermo RamasHealthcare IndustryGeneral Manager forSouthern Europe &Latin AmericaCSC (formerly iSoft)Mario ChaoHealthcare Partner andGlobal DirectoreverisCristin PowerGeneral ManagerNoemaLife ChileMovers & Shakers Interview with
  3. 3. HC IT INTERVIEWwww.frost.com | All rights reserved 2014 Frost & Sullivan 3Federico Baguear: There is a global trend toward the useof healthcare IT (HC IT) systems to improve healthcareadministration and patient treatment. Which trendsare you seeing in Latin America? What are the mainbenefits of HC IT solution adoption?Guillermo Ramas: There is a big interest in using technologyinformation systems in healthcare in Latin America. Mexicois seen as a reference standard in the region because itrepresents one of the most advanced countries in terms ofspecific regulations and regional projects. Other countrieslike Ecuador, Panama and Honduras are facing ambitioustechnology projects in which one of the main objectives is toimplement electronic medical records (EMR).The use of information and communication technologies (ICT)systems offers numerous benefits to the healthcare system.Organizations and healthcare delivery institutions increasemanagement effectiveness and efficiency in both financial andclinical areas. This allows healthcare professionals to focus onproviding better-quality patient care. EMR enables professionalsto have information whenever it is needed, leading to majorprocess control and better diagnosis.In the long term, these solutions allow optimization ofresources by increasing productivity, thereby helpinghealthcare institutions to be more competitive and providebetter services to their patients.Mario Chao: The informatization of the healthcare sectorwarrants process efficiency and decision support by providingaccess to the right information at the right time.The use of EMR provides an opportunity to improvehealthcare, more comprehensive control of population health,better patient safety, reduced waiting times for information,and increased precision of diagnosis. This comes about throughmultidisciplinary information-sharing at the same time, andability to precisely control and manage expenses and costs.That is the reason EMR is the cornerstone of healthcareindustry transformation. The EMR provides the basic platformthat allows building an ecosystem based on registers and eventsbecause it records all the transactional health movements.EMR is not the only important solution; there are manyeHealth applications that by working together, will allow theinformation to move across all the healthcare actors involved.Also, IT will help solve clinical practice access problems,such as connecting medical specialists with rural towns usingtelemedicine. Moreover, IT can help improve mental healthassistance, rehabilitation and transplant management, amongmany other areas.Technological innovation, together with IT capabilities andmobile devices, will play a key role to generate new waysto provide healthcare assistance. Importantly, as in otherindustries, ICT solutions provide the platform to moreefficiently manage areas, including logistics, human resourcesand administrative procedures.Cristian Power: Nowadays there is a growing need to useIT solutions in healthcare institutions; this is seen in privatehealthcare institutions as well as in public healthcare systemsin order to improve their management processes. In myopinion there is one big benefit that overcomes the restpatient treatment. Patient care will be improved as long asthe hospital information system has capabilities to supportclinical processes enabling the IT system to deliver clinicaldecision support and be more than just an electronic register.HC IT implementations also provide economic managementimprovements in areas including stock management, treatmentmanagement and accountability benefits. The influence ofthese benefits can be appreciated by viewing managementperformance indicators, and the board of a healthcareinstitution will be able to define their strategic vision regardingcosts and patient treatment. In other words, better knowledgeof service costs and the improvement of treatment servicescan allow doctors to determine the best treatment for thepatient and at the same time optimize payments.FB: Based on your experience, what are the mainbarriers that companies face when they enter the LatinAmerican HC IT market? How can the adoption ratebe improved in the region?GR: The main point is that the solution complies with theregulations and requirements of the healthcare system in
  4. 4. MOVERS & SHAKERS4 All rights reserved 2014 Frost & Sullivan | www.frost.comeach country. Latin America is a very fragmented market withdifferent health systems tailored to the needs of its population.ICT providers must ensure that the system meets local needs.Therefore, companies cannot access the entire region with asingle standard strategy. We have to treat each country, sector,public and private, separately.The adoption rate can be increased by showing success cases,which involves working closely with clientslisten, analyzeand define together. The results obtained in countries alreadyapplying information technology to their health processesserve as an example to others. For us, the success of ourclients is our greatest reward.MC: The HC IT market in Latin America is currently at animmature stage.There is still some way to go in properly understanding thegeneral healthcare transformation and the use of IT in thiscontext. Healthcare in Latin America is changing, and eachcountry shows specific problems, but the common factorseems to be the desire to introduce technologies in anaggressive way. This point means good news for IT companies,but there is a serious problem of expectations whenorganizations think that implementing a HC IT solution is justabout buying hardware and software. The leveraging of ICT inhealthcare is much more complex than buying supplies; it isa long and complex process that involves rethinking the waythings are done. It requires, as any profound change, a well-designedand executed strategy and, of course, major changemanagement across all industry participants. We see cases ofcountries trying to achieve impossible things, both in form andin substance; for instance, laws that demand the use of EMRfor a specific date without considering the factors necessaryto promote and encourage the use of these tools.The early stage of the market is not only reflected in buyers,but also within the HC IT industry. There are many vendorswho offer quick fixes and overpromise results, which cangenerate frustration and disappointment among customers.The immaturity of the sector also generates multiple barriersto entry, which is can be seen in low levels of investment, andshortage of human resources in HC IT.CP: The main barriers faced by a supplier looking to enter theLatin American market can be grouped into two fundamentalaspects: cultural and economic. Regarding cultural, eachLatin American country has a different understanding ofhospital information systems. The scope is defined by thisunderstanding, which many times cannot differentiate a world-classsystem from a local solution that just partially respondsto local problems in each country. In this scenario, highlyconfigurable systems that are capable of generating clinicalforms or documents dynamically can be viewed as not providinggreater benefits than a system that has been developed underthe classical programming paradigms. Note that there arecountries in Latin America that have started later than others;in turn, they have learned after others experienced setbacks.The other big barrier to companies seeking to enter the LatinAmerican market is related to understanding the purchasepower in each country. In gener