Guatemala Health Sector
Guatemala has high levels of poverty and many people require assistance by the public sector for their health care needs. Many other inhabitants do not use public services because they can afford a private hospital or clinic. The market for medical services is divided between the private and public sectors.
1. The private sector, as a common rule, purchases only well-known brands of medical equipment because of their appreciation for high quality products and total customer support from the distributor in any emergency. Investments in new medical equipment within the private healthcare sector are expected to continue, as new clinics and current hospitals buy periodically to meet their equipment needs and continue to invest strongly in new technology, such as diagnostic and treatment equipment.
2. Public sector provided care, on the other hand, is price-driven and will purchase from the lowest bidder via public tenders. All medical services in public hospitals and clinics are free of charge to any patient. This means major hospitals are replacing older equipment and buying new equipment that can meet the demand of free medical services for the population. The public sector consists of hospitals and clinics operated by the Ministry of Health through the Social Security Institute and the armed forces.
Despite the economic difficulties faced by each country in the region, demand in this sector has not diminished, as 60% of service users have private medical insurance – a number that increased during the COVID pandemic.
Experts predict continuous growth in demand for services in the private sector. Growth will likely continue because health is a priority service for the population. During the pandemic, there was an increase of usage in clinics, laboratories, and hospitals. To keep up with the demand, they invested heavily in equipment and protective gear. At present, the health sector continues to utilize strict COVID safety protocols. In Guatemala, everyone continues to wear a mask, even if it is not mandatory in public, hospitals and clinics will continue to enforce the protocols.
Guatemala imports most of the healthcare products and medical equipment needed to serve the country, but there are several local pharmaceutical manufacturers producing mainly generic drugs. Most of the products are imported from the Unites States, China, India, and Mexico.
In 2021 Guatemala imported more than $900 million worth of pharmaceuticals and medical equipment. Pharmaceutical product imports accounted for 60.1 % of the total imported and medical equipment, instruments, and apparatus amounted to about to 9.3 % of total medical sector imports.
As for the public health system, Guatemala has one of the weakest and most inefficient in the region. The available budget for health services in 2021 was $1,365 billion and congress has approved an increase of 12% for 2022. Unfortunately, the budget is poorly managed with inadequate selection of priorities. Therefore, selling to the Government is difficult and laborious, so selecting a local partner with vast experience is key to serving the market. All public sector tenders can be found on the following website: www.guatecompras.gt
There are more business opportunities found in the private sector; the industry has seen an increase, due to an aging population, chronic diseases and many new products and services that are easier to place in the private sector. Generic products are also very well accepted since brand name pharmaceuticals are highly priced in comparison to neighboring countries with more government controls.
For more information on health sector opportunities in Guatemala, please contact Antonio Prieto at Antonio.Prieto@trade.gov