Hospitals Medical and Dental Services in Mexico ISIC 851

HOSPITALS, MEDICAL AND
DENTAL SERVICES IN MEXICO:

ISIC 851
Euromonitor International
March 2017
HOSPITALS, MEDICAL AND DENTAL SERVICES IN MEXICO: ISIC 851 Passport I
LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Trends .......................................................................................................................................... 1
Competitive Landscape ................................................................................................................ 2
Prospects ..................................................................................................................................... 3
Industry Overview ......................................................................................................................... 4
Table 1 Key Industry Indicators 2010–2015 .............................................................. 4
Table 2 Key Industry Indicators: Annual Growth 2011–2015 .................................... 4
Chart 1 Production vs Nominal GDP 2000–2020 ...................................................... 5
Chart 2 Producer Volume Index vs Producer Price Index 2000–2015 ...................... 5
Industry Sectors ........................................................................................................................... 5
Table 3 Production by Sector: Value 2010–2015 ...................................................... 6
Table 4 Production by Sector: Annual Growth 2011–2015 ....................................... 6
Table 5 Production by Sector: Share of Total 2010–2015 ......................................... 6
Chart 3 Industry Sectors’ Growth Indices 2000–2020 ............................................... 6
Firmographics............................................................................................................................... 7
Table 6 Number of Companies by Employment Size 2010–2015 ............................. 7
Table 7 Number of Companies by Employment Size: Annual Growth 2011–
2015 ............................................................................................................. 7
Table 8 Number of Companies by Employment Size: Share of Total 2010–
2015 ............................................................................................................. 8
Table 9 Production by Employment Size 2010–2015................................................ 8
Table 10 Production by Employment Size: Annual Growth 2011–2015 ...................... 8
Table 11 Production by Employment Size: Share of Total 2010–2015 ....................... 8
Table 12 Industry Leaders: Company Production Shares in 2015 .............................. 9
Import and Export ......................................................................................................................... 9
Table 13 Import and Export 2010–2015 ...................................................................... 9
Chart 4 Import vs Export Growth 2000-2015............................................................. 9
Market and Buyers ..................................................................................................................... 10
Table 14 Key Market Indicators 2010–2015 .............................................................. 10
Table 15 Key Market Indicators: Annual Growth 2011–2015 .................................... 10
Households ................................................................................................................................ 11
Table 16 Households: Key Statistics 2010–2015 ...................................................... 11
Chart 5 Household Expenditure on Hospitals, Medical and Dental Services vs
GDP 2000–2020 ........................................................................................ 11
Population 2000–2020 ............................................................................... 12
Suppliers .................................................................................................................................... 12
Table 17 Supply Structure 2010–2015 ...................................................................... 12
Table 18 Supply Structure: Annual Growth 2011–2015 ............................................ 13
Table 19 Supply Structure:Share of Total 2010–2015 .............................................. 13
Labour Costs .............................................................................................................................. 13
Table 20 Key Statistics 2010–2015 ........................................................................... 13
Chart 7 Number of Employees vs Average Salary 2000–2015 ............................... 13
Chart 8 Output per Employee vs Average Salary 2000–2015................................. 14
© Euromonitor International
HOSPITALS, MEDICAL AND DENTAL SERVICES IN MEXICO: ISIC 851 Passport II
Industry Attractiveness Index ..................................................................................................... 14

Table 21 Attractiveness Index Composition .............................................................. 14
Chart 9 Attractiveness Index of Hospitals, Medical and Dental Services
Among Other Mexico Industries ................................................................. 15
Chart 10 Binary Diagram of Attractiveness Index ..................................................... 15
Attractiveness Index: Explanation .............................................................................................. 16
Future Outlook............................................................................................................................ 18
Table 22 Forecasts 2016–2021................................................................................. 18
Definitions................................................................................................................................... 18
Hospitals, Medical and Dental Services.................................................................................. 18
HOSPITALS, MEDICAL AND DENTAL SERVICES IN MEXICO: ISIC 851 Passport 1
HOSPITALS, MEDICAL AND DENTAL

SERVICES IN MEXICO: ISIC 851
HEADLINES
 Market for hospitals, medical and dental service providers in Mexico grows by 7.6% in 2015
due to continuation of increasing health coverage and soaring government spending on
healthcare
 Finalisation of governmental reforms for inclusion of uninsured Mexicans in the healthcare
system adds to growth, as well as leading to more effective allocation of resources, triggering
savings in public sector
 As a result of growing healthcare coverage, out-of-pocket spending on healthcare declines,
and growth of household spending on healthcare continues to slow
 Industry continues to face shortage of qualified personnel, and number of employees sees
insignificant growth in 2015
 Mexican hospital and dental service institutions’ turnover expected to see CAGR of 4.2% over
2015-2020 due to further implementation of governmental reforms for universal healthcare
coverage and greater investment into private healthcare
TRENDS
 In 2015 the revenue of Mexican hospitals, medical and dental service providers increased by
7.6% due to growing government spending and continuous implementation of governmental
initiatives aiming to create a universal healthcare system. Household spending on healthcare
services also increased, albeit at a slower pace as the government was taking healthcare
costs off uninsured Mexicans with the Seguro Popular scheme. Medical tourism is continuing
to play an important role in growing demand for medical services.
 The Mexican health system has been fragmented among different providers with only half of
the population having access to healthcare a decade ago. The healthcare reforms were
aimed to increase the proportion of the Mexican population having access to healthcare to
more than 90% of the population. Seguro Popular, a public insurance scheme offering
previously uncovered Mexicans access to a package of basic health services that was
launched in 2004, successfully entered finalisation stages by 2015. As a result, by the that
year 57.3 million Mexicans had been added by the Ministry of Health to the healthcare
services system, with others covered by the Mexican Institute for Social Security (IMSS – 60.6
million), and the Institute for Social Security and Services for Civil Servants (ISSSTE – 12.9
million). In 2015, as part of final implementation of Seguro Popular, government spending on
healthcare services has been growing at a faster rate than household expenditure.
 In 2015 household expenditure growth on healthcare services continued to slow down, seeing
an increase of 5.3%. Implementation of Seguro Popular continued to lift the burden of
healthcare cost off a large number uninsured Mexicans. The programme also has contributed
to the reduction of consumers’ out-of-pocket expenditures, which added to the decelerating
growth of healthcare spending by Mexican households. The government also increased the
number of interventions covered by Seguro Popular. Since 2004 the amount of drug names
included in the coverage increased more than 3-fold, and the number of diseases included in
the so-called fund for protection against catastrophic expenditures raised from four to 59.
 Despite the positive impact of reforms, Mexico still faces challenges. In 2015 the government
was also aiming to eradicate duplicated functions across the three different institutions
responsible for providing public sector health services and reduce costs by increasing
efficiency in the use of allocated resources through consolidation of drug purchases. Public
institutions are also overlapping by geography and services are being duplicated. However,
the number of alliance agreements to collaborate by exchanging health services between
institutions had been increasing in recent years, from seven in 2014 to 11 in 2015. The lack of
infrastructure and misallocation of resources nevertheless continued to offer opportunities for
the private sector, where healthcare expenditure continued to rise. Mexico has also become
second-largest medical tourism destination adding to growing private healthcare demand in
2015.
 An increase in chronic diseases such as diabetes and cancer are also driving up demand for
healthcare services, and adding more emphases on reforms needed to tackle chronic
diseases more effectively, as such diseases require long-term treatment, adding to growing
healthcare costs. Historically, the Mexican healthcare system was more focused on the
treatment of infectious disease and malnutrition, so with the rise of chronic diseases the
Mexican Government has also been working to emphasise the preventive aspect of
healthcare. Mexico is changing from a curative approach to preventative, with growing
emphases on lifestyle changes. The government is launching awareness programmes to
remain cost-effective to gain a grip on at-risk populations and avoid the sophisticated
treatment of chronic disease management. For example, 2015 World Diabetes Day in Mexico
City involved more than 15,000 people (cases of diabetes reached more than 11 million by
2015), the International Diabetes Foundation (IDF) aimed to educate the local population
about lifestyle choices, and also provided services such as simplified blood sugar testing,
healthy cooking workshops and exercise classes.
 In 2015, despite a number of successful savings implemented to restructure fund allocations,
industry profitability decreased slightly, by one percentage point. The industry continues to
struggle with the lack of qualified personnel, as the number of employees increased by a
mere 0.5%, while the average wage in the healthcare sector soared by 9.3%. According to
INEGI (Instituto Nacional de Estadística y Geografía) Mexico had over 4,500 public and
private hospitals and 133,000 hospital beds in 2015. The country’s estimated 1.6 hospital
beds for 1,000 inhabitants remains relatively low compared with OECD countries, and 2.16
doctors per 1,000 inhabitants remains below the OECD average of 3.2 doctors. Such a
situation also highlights the challenging situation of medical personnel.
COMPETITIVE LANDSCAPE
 Operadora De Hospitales Angeles SA de CV is a 100% Mexican company. It is engaged in
healthcare services via 28 hospitals across Mexico, totalling 2,550 beds, 230 operating rooms
and 15,000 medical specialists. Angeles Health hospitals conduct an estimated 100 clinical
trials annually, primarily with major global pharmaceutical and medical device companies. The
treatment areas include: weight loss surgery, stem cell application, alternative cancer
treatment, orthopaedic surgery, CCSVI MS treatment, cosmetic surgery, dental treatment and
implants, neurology, cardiology, general surgery, and vision care.
 The American British Cowdray Medical Center IAP (ABC Medical Center) is a private non-
profit assistance institution dedicated to research, education and provision of medical services
in around 64 specialties. Besides common medical centre activities, ABC Medical Center is
highly specialised in areas for treating cancer; OB/GYN and paediatric centre; cardiovascular;
neurological; nutrition, obesity and metabolic disorders; transplantation; preventative; the
traumatology/orthopaedic fields. ABC Medical Center is the first and only medical centre in
the country certified under the criteria approved by the General Health Council (CSG) and JCI
on its two campuses. It has also received the National and Ibero-American Quality Awards.
 Medica Sur SAB de CV is a Mexican non-governmental institution, primarily engaged in the
healthcare sector. It operates two hospitals: Southern Medical Tlalpan (highly specialised
hospital) and Southern Hills Medical (hospital specialising in gynaecology and obstetrics);
three Centres of Primary Health Care: Medical Clinic South Pedregal, Medica Sur Clinic and
Polanco South Medical Clinic Lions; 14 clinical laboratories. It specialises in ambulatory
diagnostic, preventive medicine, anatomical pathology, biotechnology and pharmacology,
blood bank, clinical pathology laboratory, emergency room, nuclear medicine, general
surgery, radiology and magnetic resonance imaging (MRI) diagnostic, among other services.
In addition, through Fundacion Clinica Medica Sur AC, it offers education services and
manages its own internship and residency programmes.
 Laboratorio Médico Del Chopo SA de CV is a local company based in Mexico. The company
is conducting medical laboratory studies, clinical analysis and supports disease prevention
nationwide, with services to individuals and companies. It has 250 branches in Mexico City
and Metropolitan Area, Guadalajara, Hidalgo, Toluca, Guanajuato and Michoacan. Also, the
company has 19 Speciality Center facilities that serve on a 24-hour basis, and offer a delivery
service. The services that company provides are pregnancy tests, woman’s health checks,
men’s health checks, HIV testing, paternity testing, cancer testing, cholesterol checks and
others.
 Star Médica SA De CV is Mexican company engaged in healthcare services via hospitals.
The company operates 12 hospitals in Mexico, including Morelia, Aguascalientes, Merida,
San Luis Potosi, Mexico State, Ciudad Juarez, Mexico City and Querétaro. The company
announced expansion in 2014 with the building of three new hospitals in the Federal District
and the states of Chihuahua and Veracruz. Star Médica SA also operates under brands: Vivo
Hospitales and HIP.
PROSPECTS
 Mexican hospitals, medical and dental service providers’ turnover is forecast to continue
growing at a CAGR of 4.2 % over 2015-2020, driven by global trends such as the ageing
population, as well as increasing lifespan. At the same time, improving healthcare
infrastructure due to the growing number of hospitals will also play a role. Continued
implementation of universal healthcare coverage programmes is expected to add to
healthcare industry growth as healthcare remains high on the agenda of the Mexican
Government. In light of the emerging challenges represented by growth chronic and other
diseases, the Mexican healthcare system will continue to place an emphasis on preventative
health programmes, encouraging investment in RD and other healthcare reforms in Mexico.
 The challenge of Mexico’s healthcare sector remains, and as part of its 2016 budget planning
process, the government is reducing or merging administrative-related programmes as a way
to reduce administrative healthcare costs and increase efficiency. In the Instituto de
Seguridad y Servicios Sociales de los Trabajadores del Estado (ISSSTE, for public sector
workers) the number of administrative programmes was reduced by 52.2%, in the Ministry of
Health by 15%, and in the Instituto 14 Mexicano del Seguro Social (IMSS) five programmes
were merged into three.
 As Mexico has experienced rapid transition from a care system adjusted to serve infectious
and malnutrition diseases to a system that has to adjust to a growing number of chronic
degenerative diseases and mental health disorders, the challenges are rising. The Mexican
healthcare system will have to increasingly face diseases that require preventive measures
and programmes with a focus on healthy lifestyles, raising demand for an integrated
approach. The government is seeking to transform the nation’s healthcare model from its
current focus on healing to disease prevention, and is introducing policies and programmes
that support innovative research and development (R&D) for new medicines that combat
chronic diseases.
 Although recent budget cuts have resulted in various investments being put on hold, improved
public health system sustainability, quality and transparency remain a government priority. To
accomplish this, the government is focusing efforts on the portability of rights and the
compatibility of health information systems such as EMRs (Electronic Medical Records)
among health institutions. Implementing healthcare reform will continue to open the market to
non-government competition, boost private health care and insurance coverage, and create
new opportunities for the sector to continue growing.
INDUSTRY OVERVIEW
Table 1 Key Industry Indicators 2010–2015
2010 2011 2012 2013 2014 2015
Production 488,398 533,414 570,482 628,551 666,656 717,637

(Turnover)(MX$ million)
Value Added (MX$ million) 367,671 400,271 428,649 467,055 491,827 533,426
Profit (MX$ million) 143,057 150,997 159,308 167,327 173,005 182,864
Profit Margin (%) 29.3 28.3 27.9 26.6 26.0 25.5
Producer Volume 124 132 137 145 149 155
Index(2005=100)
Producer Price 118 122 126 130 135 140
Index(2005=100)
Number of Enterprises 126,840 133,410 138,481 146,532 153,500 159,520
Number of Employees 855,626 868,710 873,799 882,065 893,830 898,703
Output per Employee(MX$ 571 614 653 713 746 799
'000)
Average Salary (MX$ '000) 261 285 306 338 354 387
Source: Euromonitor International from official statistics, trade associations, trade press, company research.
Table 2 Key Industry Indicators: Annual Growth 2011–2015
2011 2012 2013 2014 2015
Production (Turnover) (%) 9.2 6.9 10.2 6.1 7.6

Value Added (%) 8.9 7.1 9.0 5.3 8.5
Profit (%) 5.6 5.5 5.0 3.4 5.7
Profit -1.0 -0.4 -1.3 -0.7 -0.5
Margin(Percentage points)
Producer Volume 6.3 3.4 6.3 2.5 4.0
Index(2005=100, %)
Producer Price 2.8 3.5 3.6 3.4 3.5
Index(2005=100, %)
Number of Enterprises (%) 5.2 3.8 5.8 4.8 3.9
Number of Employees (%) 1.5 0.6 0.9 1.3 0.5
Output per Employee (%) 7.6 6.3 9.1 4.7 7.1
Average Salary (%) 9.3 7.5 10.3 4.9 9.3
Chart 1 Production vs Nominal GDP 2000–2020
Chart 2 Producer Volume Index vs Producer Price Index 2000–2015
INDUSTRY SECTORS
Table 3 Production by Sector: Value 2010–2015
MX$ million
2010 2011 2012 2013 2014 2015
Hospitals 199,653 222,423 243,090 275,331 288,983 309,083

Medical Practice 146,775 156,748 167,975 183,243 195,615 213,699
Dental Practice 58,197 64,762 67,713 72,934 76,448 79,977
Other Health Services 83,773 89,481 91,704 97,044 105,609 114,879
Total 488,398 533,414 570,482 628,551 666,656 717,637
Table 4 Production by Sector: Annual Growth 2011–2015
%
2011 2012 2013 2014 2015
Hospitals 11.4 9.3 13.3 5.0 7.0

Medical Practice 6.8 7.2 9.1 6.8 9.2
Dental Practice 11.3 4.6 7.7 4.8 4.6
Other Health Services 6.8 2.5 5.8 8.8 8.8
Total 9.2 6.9 10.2 6.1 7.6
Table 5 Production by Sector: Share of Total 2010–2015
%
2010 2011 2012 2013 2014 2015
Hospitals 40.9 41.7 42.6 43.8 43.3 43.1

Medical Practice 30.1 29.4 29.4 29.2 29.3 29.8
Dental Practice 11.9 12.1 11.9 11.6 11.5 11.1
Other Health Services 17.2 16.8 16.1 15.4 15.8 16.0
Total 100 100 100 100 100 100
Chart 3 Industry Sectors’ Growth Indices 2000–2020
FIRMOGRAPHICS
Table 6 Number of Companies by Employment Size 2010–2015
Number of companies
2010 2011 2012 2013 2014 2015
Micro (0-9 employees) 122,762 129,120 134,029 141,822 148,567 154,392

Extra small(10-19 2,346 2,468 2,561 2,710 2,839 2,951
employees)
Small (20-49 employees) 1,174 1,235 1,282 1,356 1,420 1,476
Medium (50-249 employees) 459 483 501 530 555 577
Large (250+ employees) 99 104 108 114 119 124
Total 126,840 133,410 138,481 146,532 153,500 159,520
Table 7 Number of Companies by Employment Size: Annual Growth 2011–2015
%
2011 2012 2013 2014 2015
Micro (0-9 employees) 5.2 3.8 5.8 4.8 3.9

Extra small(10-19 5.2 3.8 5.8 4.8 3.9
employees)
Small (20-49 employees) 5.2 3.8 5.8 4.7 3.9
Medium (50-249 employees) 5.2 3.7 5.8 4.7 4.0
Large (250+ employees) 5.1 3.8 5.6 4.4 4.2
Total 5.2 3.8 5.8 4.8 3.9
Table 8 Number of Companies by Employment Size: Share of Total 2010–2015
%
2010 2011 2012 2013 2014 2015
Micro (0-9 employees) 96.8 96.8 96.8 96.8 96.8 96.8

Extra small(10-19 1.8 1.8 1.8 1.8 1.8 1.8
employees)
Small (20-49 employees) 0.9 0.9 0.9 0.9 0.9 0.9
Medium (50-249 employees) 0.4 0.4 0.4 0.4 0.4 0.4
Large (250+ employees) 0.1 0.1 0.1 0.1 0.1 0.1
Total 100 100 100 100 100 100
Table 9 Production by Employment Size 2010–2015
MX$ million
2010 2011 2012 2013 2014 2015
Micro (0-9 employees) 195,008 211,919 225,910 248,903 263,622 283,172

Extra small(10-19 30,393 32,905 34,989 38,550 40,588 43,865
employees)
Small (20-49 employees) 33,552 36,533 38,747 42,693 45,325 48,884
Medium (50-249 employees) 67,811 74,484 80,047 88,197 94,187 101,150
Large (250+ employees) 161,634 177,573 190,789 210,208 222,934 240,567
Total 488,398 533,414 570,482 628,551 666,656 717,637
Table 10 Production by Employment Size: Annual Growth 2011–2015
%
2011 2012 2013 2014 2015
Micro (0-9 employees) 8.7 6.6 10.2 5.9 7.4

Extra small(10-19 8.3 6.3 10.2 5.3 8.1
employees)
Small (20-49 employees) 8.9 6.1 10.2 6.2 7.9
Medium (50-249 employees) 9.8 7.5 10.2 6.8 7.4
Large (250+ employees) 9.9 7.4 10.2 6.1 7.9
Total 9.2 6.9 10.2 6.1 7.6
Table 11 Production by Employment Size: Share of Total 2010–2015
%
2010 2011 2012 2013 2014 2015
Micro (0-9 employees) 39.9 39.7 39.6 39.6 39.5 39.5

Extra small(10-19 6.2 6.2 6.1 6.1 6.1 6.1
employees)
Small (20-49 employees) 6.9 6.8 6.8 6.8 6.8 6.8
Medium (50-249 employees) 13.9 14.0 14.0 14.0 14.1 14.1
Large (250+ employees) 33.1 33.3 33.4 33.4 33.4 33.5

Total 100 100 100 100 100 100
Table 12 Industry Leaders: Company Production Shares in 2015
Operadora de Hospitales Angeles SA de CV 1.6

American British Cowdray Medical Center IAP, The 0.3
Medica Sur SA de CV 0.3
Laboratorio Médico Del Chopo SA de CV 0.2
Star Médica SA De CV 0.2
Other 97.4
IMPORT AND EXPORT

Table 13 Import and Export 2010–2015
2010 2011 2012 2013 2014 2015
Trade Balance(MX$ 328 328 385 410 417 516

million)
Trade Balance (%) 20.3 0.0 17.4 6.6 1.6 23.6
Imports (MX$ million) 462 510 501 557 600 602
Imports (%) 5.7 10.3 -1.8 11.1 7.9 0.2
Imported Products 0.1 0.1 0.1 0.1 0.1 0.1
inTotal Market (%)
Exports (MX$ million) 790 838 886 967 1,017 1,117
Exports (%) 11.3 6.0 5.7 9.1 5.2 9.8
Exported Products 0.2 0.2 0.2 0.2 0.2 0.2
inTotal Products Output
(%)
Chart 4 Import vs Export Growth 2000-2015
MARKET AND BUYERS

Table 14 Key Market Indicators 2010–2015
2010 2011 2012 2013 2014 2015
Market Size (MX$ million) 488,036 533,070 569,522 627,486 665,528 716,156
Imported Products 0.1 0.1 0.1 0.1 0.1 0.1
inTotal Market (%)
Share of 99.9 99.9 99.9 99.9 99.9 99.9
LocallyProduced
Products (%)
B2B Sales (MX$ million) 2,139 2,307 2,479 2,693 2,719 2,852
Households 201,439 214,694 231,423 248,771 263,414 277,395
Expenditureon
Hospitals, Medicaland
Dental Services(MX$
million)
Government (MX$ million) 284,458 316,069 335,620 376,021 399,395 435,909
Table 15 Key Market Indicators: Annual Growth 2011–2015
2011 2012 2013 2014 2015
Market Size (%) 9.2 6.8 10.2 6.1 7.6

Imported Products 0.0 0.0 0.0 0.0 0.0
inTotal
Market(Percentage points)
Share of 0.0 0.0 0.0 0.0 0.0
LocallyProduced
Products(Percentage
points)
B2B Sales (%) 7.8 7.5 8.6 1.0 4.9

Households 6.6 7.8 7.5 5.9 5.3
Expenditureon
Dental Services (%)
Government (%) 11.1 6.2 12.0 6.2 9.1
HOUSEHOLDS
Table 16 Households: Key Statistics 2010–2015
2010 2011 2012 2013 2014 2015
Total 8,841 9,615 10,342 10,829 11,549 12,195

HouseholdExpenditure
(MX$ billion)
Households 201,439 214,694 231,423 248,771 263,414 277,395
Expenditureon
Dental Services(MX$
million)
Household Expenditure 2.3 2.2 2.2 2.3 2.3 2.3
onHospitals, Medical
andDental Services(% of
total expenditure)
Population ('000) 118,618 120,365 122,071 123,740 125,386 127,017
Household Expenditure 1,698 1,784 1,896 2,010 2,101 2,184
onHospitals, Medical
andDental Services
perCapita (MX$)
Chart 5 Household Expenditure on Hospitals, Medical and Dental Services vs GDP

2000–2020

Population 2000–2020
SUPPLIERS
Table 17 Supply Structure 2010–2015
MX$ million
2010 2011 2012 2013 2014 2015
B2B Purchases 120,727 133,142 141,833 161,496 174,829 184,211
Labour Costs 222,931 247,501 267,539 297,794 316,701 348,200

Taxes Less Subsidies 1,684 1,773 1,802 1,934 2,122 2,362
Costs 345,342 382,417 411,174 461,224 493,651 534,773
Table 18 Supply Structure: Annual Growth 2011–2015
%
2011 2012 2013 2014 2015
B2B Purchases 10.3 6.5 13.9 8.3 5.4

Labour Costs 11.0 8.1 11.3 6.3 9.9
Taxes Less Subsidies 5.3 1.7 7.3 9.7 11.3
Costs 10.7 7.5 12.2 7.0 8.3
Table 19 Supply Structure:Share of Total 2010–2015
%
2010 2011 2012 2013 2014 2015
B2B Purchases 35.0 34.8 34.5 35.0 35.4 34.4

Labour Costs 64.6 64.7 65.1 64.6 64.2 65.1
Taxes Less Subsidies 0.5 0.5 0.4 0.4 0.4 0.4
Costs 100 100 100 100 100 100
LABOUR COSTS
Table 20 Key Statistics 2010–2015
2010 2011 2012 2013 2014 2015
Labour Costs(MX$ million) 222,931 247,501 267,539 297,794 316,701 348,200

Number of Employees 855,626 868,710 873,799 882,065 893,830 898,703
Output per Employee(MX$ 571 614 653 713 746 799
'000)
Average Salary (MX$ '000) 261 285 306 338 354 387
Chart 7 Number of Employees vs Average Salary 2000–2015
Chart 8 Output per Employee vs Average Salary 2000–2015
INDUSTRY ATTRACTIVENESS INDEX

Table 21 Attractiveness Index Composition
Weight (%) Rating
Attractiveness in Stable Economic Environment 29

- Industry Growth 10 68
- Demand Stability 5 34
- Profitability 10 45
- Bargaining Power over Suppliers 5 90
- Bargaining Power over Buyers 5 69
- Entry Barriers 5 65
- Foreign Competition 5 90
- Foreign Opportunities 5 12
Attractiveness in Turbulent Economic Environment 34
- Industry Growth 5 71
- Industry's Cyclicality 5 100
- Industry's Dependence on Households 5 97
- Durability of the Products/services 5 72
- Influence on Other Industries 12.5 12
- Dependence on Other Industries 12.5 93
- Resistance to Drop in GDP 5 77
Overall Attractiveness Index 63
Chart 9 Attractiveness Index of Hospitals, Medical and Dental Services Among Other
Mexico Industries
Chart 10 Binary Diagram of Attractiveness Index
ATTRACTIVENESS INDEX: EXPLANATION

The Industry Attractiveness Index has two parts, evaluating:
 the industry’s performance in a stable economic environment;
 the industry’s performance in a turbulent economic environment and the industry’s resistance
to economic downturn.
The first part of the index represents the industry’s performance in a stable economic
environment in the period of 2013–2015. It covers several criteria of the industry’s performance:
 Industry’s growth: the compound annual growth rate of the industry’s production (turnover).
 Demand stability: coefficient of variation of year-on-year growth indexes of demand.
Coefficient of variation is a ratio between the standard deviation and sample mean. It
complements the measure of average growth rates by giving the growth stability
characteristic.
 Industry’s profitability: average Profit share of production (turnover) over five years of stable
economic environment.
 Bargaining power over suppliers: the measure is calculated as the industry’s average
percentage share in its three major suppliers’ sales. It shows the industry’s potential power to
negotiate the prices and other supply conditions of its major intermediate purchases.
 Bargaining power over buyers: the measure is calculated as the industry’s average
percentage share in its three major buyers’ costs. It evaluates the potential power of the
industry to negotiate the price of its production and set other sales conditions.
 Barriers of entry: a share of large companies in the total number of companies within the
industry. The share of big companies is a proxy for entry barriers and concentration measure
within the industry.
 Foreign competition: average annual import share in market size, average of five years. It
shows how strong local companies are in comparison with foreign competitors.
 Global opportunities: export share of industry’s production (turnover), the average of five
years. It shows the external industry’s possibilities to supply the foreign markets and implicitly
demonstrates the competitiveness of the industry’s products/services abroad.
The second part of the index reflects the industry’s vulnerability in economic downturn. It is
calculated during recessionary years (2010–2013) and based on several criteria:
 Industry’s growth: the compound annual growth rate of production (turnover).
 Dependence on capital purchases: ratio of non-investment (B2B) purchases of industry’s
products/services to investment purchases of industry’s products/services. Usually, goods
and services that are treated as capital by companies are pro-cyclical, their reaction to
changes in economic conditions is more sensitive in comparison with B2B purchases.
 Dependence on household consumption: the average ratio of household consumption
expenditure to business purchases of the product is used to evaluate the sensitivity of the
specific production category. Usually B2B goods and services experience amplified
fluctuations in their demand compared to final consumption spending categories, which
exhibit lower levels of volatility and are less sensitive to economic downturn.
 Durability of the industry’s product: time between the purchase and the complete wearing out
of a product/service. The longer the time the more durable the good is. Demand for durable or
semi-durable goods usually has greater sensitivity to economic slowdowns as time of service
can be prolonged for these goods.
 Industry’s resistance to changes in a country’s GDP: measured as the elasticity coefficient of
how sensitively the industry reacts to changes in a country’s GDP.
 Industry’s dependency on other industries (forward linkage): the variable, measured as the
horizontal sum of all coefficients of Leontief’s matrix inverse. It measures the cumulative
output decrease in the sector, if the final demand for the production of all sectors were to
decrease by one unit. In a period of economic downturn, it is a measure representing the
power of other industries to affect the industry of interest.
 Industry’s ability to affect other industries in the economy (backward linkage): measured as
the vertical sum of the coefficients of Leontief’s matrix inverse. It shows how much influence
the industry has on other industries and how strong these links are. It measures the extent to
which a unit change in the demand for the product causes production increases in all the
industries of the economy. Being one of the key industries in the economy gives additional
strength and resistance to economic shocks.
Each measure of the industry’s performance is compared across all industries in the country
and is then attributed to a corresponding percentile judged on its performance (scale from 1 to
100). The better the value of criteria the higher percentile the industry reaches. The percentiles
are then weighted by their relative importance and the final score is calculated as the weighted
average.
FUTURE OUTLOOK
Table 22 Forecasts 2016–2021
Turnover by category (MX$ million)

2016 2017 2018 2019 2020 2021
Hospitals 308,483 321,232 337,191 356,123 377,063 398,951

Medical Practice 219,952 228,966 241,181 255,596 271,552 288,295
Dental Practice 79,748 79,744 83,573 88,108 93,124 98,350
Other Health Services 118,638 118,594 124,653 131,815 139,746 148,050
Total 726,821 748,536 786,598 831,642 881,485 933,646
DEFINITIONS
Hospitals, Medical and Dental Services

Hospitals, medical and dental services is an aggregation of Hospitals, Medical practice,
Dental practice and Other health services.
Hospitals
This category includes short- or long-term hospital activities of medical and paramedical staff
for general and specialized hospitals, sanatoriums, preventoria, medical nursing homes,
asylums, mental hospital institutions, rehabilitation centres, leprosariums and other health
institutions that have accommodation facilities, military-base and prison hospitals.
Medical Practice
This category includes medical consultation and treatment in the field of general and
specialized medicine by general practitioners and medical specialists and surgeons.
Dental Practice
This category includes dental practice activities of a general or specialized nature, dental
activities in operating rooms, orthodontic activities and private consultants' services to
inpatients.
Other Health Services

This category includes activities of nurses, midwives, physiotherapists or other paramedical
practitioners in the field of optometry, hydrotherapy, medical massage, occupational therapy,
speech therapy, chiropody, homeopathy, chiropractic, acupuncture; dental paramedical
personnel such as dental therapists, school dental nurses and dental hygienists; activities of
medical laboratories; blood banks, sperm banks, transplant organ banks; ambulance transport
of patients; residential health facilities, except hotels.

Hospitals Medical and Dental Services in Mexico ISIC 851

Enviado por

Dados do documento

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

Hospitals Medical and Dental Services in Mexico ISIC 851

Enviado por

Direitos autorais:

Formatos disponíveis

HOSPITALS, MEDICAL AND

DENTAL SERVICES IN MEXICO:

LIST OF CONTENTS AND TABLES

Industry Attractiveness Index ..................................................................................................... 14

HOSPITALS, MEDICAL AND DENTAL

2010 2011 2012 2013 2014 2015

Production 488,398 533,414 570,482 628,551 666,656 717,637

Table 2 Key Industry Indicators: Annual Growth 2011–2015

2011 2012 2013 2014 2015

Production (Turnover) (%) 9.2 6.9 10.2 6.1 7.6

Chart 1 Production vs Nominal GDP 2000–2020

Chart 2 Producer Volume Index vs Producer Price Index 2000–2015

Table 3 Production by Sector: Value 2010–2015

Hospitals 199,653 222,423 243,090 275,331 288,983 309,083

Table 4 Production by Sector: Annual Growth 2011–2015

Hospitals 11.4 9.3 13.3 5.0 7.0

Table 5 Production by Sector: Share of Total 2010–2015

Hospitals 40.9 41.7 42.6 43.8 43.3 43.1

Chart 3 Industry Sectors’ Growth Indices 2000–2020

Micro (0-9 employees) 122,762 129,120 134,029 141,822 148,567 154,392

Table 7 Number of Companies by Employment Size: Annual Growth 2011–2015

Micro (0-9 employees) 5.2 3.8 5.8 4.8 3.9

Table 8 Number of Companies by Employment Size: Share of Total 2010–2015

Micro (0-9 employees) 96.8 96.8 96.8 96.8 96.8 96.8

Table 9 Production by Employment Size 2010–2015

Micro (0-9 employees) 195,008 211,919 225,910 248,903 263,622 283,172

Table 10 Production by Employment Size: Annual Growth 2011–2015

Micro (0-9 employees) 8.7 6.6 10.2 5.9 7.4

Table 11 Production by Employment Size: Share of Total 2010–2015

Micro (0-9 employees) 39.9 39.7 39.6 39.6 39.5 39.5

Large (250+ employees) 33.1 33.3 33.4 33.4 33.4 33.5

Table 12 Industry Leaders: Company Production Shares in 2015

Operadora de Hospitales Angeles SA de CV 1.6

IMPORT AND EXPORT

2010 2011 2012 2013 2014 2015

Trade Balance(MX$ 328 328 385 410 417 516

Chart 4 Import vs Export Growth 2000-2015

MARKET AND BUYERS

2010 2011 2012 2013 2014 2015

Table 15 Key Market Indicators: Annual Growth 2011–2015

2011 2012 2013 2014 2015

Market Size (%) 9.2 6.8 10.2 6.1 7.6

B2B Sales (%) 7.8 7.5 8.6 1.0 4.9

2010 2011 2012 2013 2014 2015

Total 8,841 9,615 10,342 10,829 11,549 12,195

Chart 5 Household Expenditure on Hospitals, Medical and Dental Services vs GDP

Chart 6 Household Expenditure on Hospitals, Medical and Dental Services vs

B2B Purchases 120,727 133,142 141,833 161,496 174,829 184,211

Labour Costs 222,931 247,501 267,539 297,794 316,701 348,200

Table 18 Supply Structure: Annual Growth 2011–2015

B2B Purchases 10.3 6.5 13.9 8.3 5.4

Table 19 Supply Structure:Share of Total 2010–2015

B2B Purchases 35.0 34.8 34.5 35.0 35.4 34.4

2010 2011 2012 2013 2014 2015

Labour Costs(MX$ million) 222,931 247,501 267,539 297,794 316,701 348,200

Chart 7 Number of Employees vs Average Salary 2000–2015

Chart 8 Output per Employee vs Average Salary 2000–2015

INDUSTRY ATTRACTIVENESS INDEX

Weight (%) Rating

Attractiveness in Stable Economic Environment 29

Chart 10 Binary Diagram of Attractiveness Index

ATTRACTIVENESS INDEX: EXPLANATION

Turnover by category (MX$ million)

Hospitals 308,483 321,232 337,191 356,123 377,063 398,951