Overcoming Gaps in Health in Latin America: The Role of Talent and Technology in the Future of the Sector

Latin American creativity and talent can significantly impact the healthcare sector in the region. The region has a rich diversity of professionals and entrepreneurs willing to tackle challenges with innovative solutions.

Not surprisingly, in recent decades, the healthcare ecosystem in the region has undergone significant transformations driven by a combination of economic, technological, and social factors that are reshaping the way healthcare is delivered in Latin America. However, despite these advances, numerous challenges remain that must be addressed to maximize the positive impact on population health.

In the experience of Monterrey-based angel investor Mario Garcia, one of the most prominent challenges is a considerable gap that needs to be filled to improve the quality of healthcare services: “There is a big gap in the healthcare ecosystem in LATAM that we need to fill. It is essential to create conditions so that healthcare talent does not migrate from LATAM.”

The gap he refers to is not only technological and human resources but also financial. Recent data indicate that, in 2020, healthcare spending in Latin America was approximately 6.6% of GDP, compared to 9.8% in the OECD, even though in 2022, investments in healthcare startups in LATAM reached $1.5 billion, an increase of 50% over the previous year.

Another factor in boosting health technology (health tech) in the region is the collaboration between different actors and talent retention. In this regard, Rodrigo Sanchez, a venture capital investor, emphasizes that collaboration not only implies the integration of startups with large corporations but also the participation of governments and international organizations and that it is necessary to create the right conditions to prevent highly trained professionals from migrating to other countries with better opportunities. An example is that recent studies show that approximately 30% of medical graduates in LATAM seek employment abroad.

“The retention of talent in the healthcare sector is a great challenge in the region, and the exchange of technology with foreign companies can detonate the healthcare market in LATAM,” says Sanchez, who also comments that international collaboration is key because adopting advanced technologies from countries with more developed healthcare systems, LATAM can accelerate its progress.

Something that should be preserved for the growth of health tech is the integration of artificial intelligence (AI) and other advanced technologies into the healthcare system. Recent studies show that the use of AI in the healthcare sector could generate savings of up to US$150 billion per year by 2026. In LATAM, this technology has the potential to optimize resources and improve clinical outcomes.

Sebastian Molina, Investment Director at a Venture Lab, believes that AI is revitalizing interest in healthcare globally and considers it essential to digitize healthcare services in the region: “It is fundamental to build science and research-based companies in LATAM.” Digitalization improves efficiency and facilitates access to medical services in remote areas.

A vital factor relates to investments in the region's healthcare sector in the region. According to Renato Grandmont, an accomplished leader with extensive global banking experience, the healthcare venture capital market should grow in LATAM for the next 10-20 years as more investors recognize the potential of the healthcare sector. Not to mention that “the creation of specialized funds and the promotion of favorable government policies can incentivize the flow of capital into this sector.”

Grandmont mentions that macroeconomic control and political stability are essential factors in creating a favorable environment for the development of the sector, but that “Governments must create a favorable ecosystem for new healthcare companies.”

In conclusion, the healthcare ecosystem in LATAM is at a crossroads. With the right investments, international collaboration, and government support, it is possible to overcome current challenges and seize opportunities to create a more robust and efficient healthcare system. Transforming this sector in LATAM will benefit the region and contribute to global progress in healthcare. The combination of technology, investment, and favorable public policies can transform the healthcare ecosystem in LATAM, improving the quality of life of millions of people; therefore, more significant investment and a better allocation of resources in the sector are required.

Economic stability allows for long-term planning and attracting foreign investment. Countries such as Chile and Uruguay have made significant progress in this regard, creating an environment conducive to innovation in healthcare and counteracting the trend of talent outflows.

Investing in healthcare startups and offering attractive incentives, such as competitive salaries, research opportunities, and a stimulating work environment, represents an opportunity to generate significant social impact.

Step into the future of healthcare with Dr. Michael Gillam, an emergency physician and pioneering innovator in the intersection of AI, big data, and biotech. In this enlightening session, Dr. Gillam reveals how these converging technologies are revolutionizing medicine, offering unprecedented opportunities for businesses and empowering individuals to take charge of their health.

Come see Dr. Michael Gillam & Salim Ismail at the Exponential Executive Program

When: Monday - Friday / 7th - 11th October 2024

Where: In Person - Austin, Texas

Join us for a transformative five-day event. The Exponential Executive Program explores the world-changing impact of exponential technologies like AI, blockchain, and solar energy. Learn from leading pioneers, achieve 10x breakthroughs, and turn disruption into opportunity. With limited in-person and online seats, apply now to elevate your organization and harness the power of these groundbreaking innovations.

Apply Now 👉️ https://web.openexo.com/exponential-executive-program/