Healthcare Opportunities

An Expert's View about Medical, Health and Cosmetics Products in Venezuela

Posted on: 26 May 2012

According to Business Monitor International, total healthcare expenditure in Venezuela in 2011 was around US$ 14 billion.

Sector briefing Healthcare Opportunities in Venezuela Why Venezuela th th Venezuela is the 6 largest and the 6 most populous country in Latin America. Around 47% of Venezuela’s population of 29 million are under the age of 25 and almost 90% live in urban areas. 3.2 million people live in Caracas, the capital city. Healthcare expenditure in 2011 was estimated at US$ 14 billion. th Venezuela has the 4 largest economy in Latin America. The oil and gas industry dominates and accounts for 30% of GDP and almost 90% of export value. Long-term oil wealth and poor economic diversification mean that Venezuela “Venezuela is the third largest imports around 70% of its needs. importer of medical equipment Find general information on the Venezuelan & related products in Latin market conditions on UKTI’s website. The America after Brazil and Mexico. Doing Business Guide for Venezuela gives an overview of Venezuela’s economy, business, culture, potential opportunities and an introduction to other relevant issues. UK Trade & Investment Sector briefing: Healthcare opportunities in Venezuela needles, catheters etc), ophthalmology and Overview optical testing apparatus, X-ray material, hearing aids, dentistry equipment and materiel, Venezuela has both publicly funded and private etc. healthcare systems. According to Business Monitor International, total healthcare The Venezuelan Association of Medical, Dental expenditure in Venezuela in 2011 was around & Laboratory Equipment Distributors (AVEDEM) US$ 14 billion. represents over 100 member companies including agents, importers, distributors and The public system offers universal healthcare local manufacturers etc. Most member that is free of charge but limited in its ability to companies specialise in closely related lines. meet demand. According to the 2011 WHO Most major multinationals either have local Statistical Report, the Venezuelan government offices or distribute nationally using exclusive spends 5.4% of GDP and 8.4% of total representatives. government spending on health. This translates to government spend of US$ 268 per Aesthetic Medicine capita whilst total per capita spend is almost In common with other Latin American $600. Public spending both to expand capacity countries, aesthetic and elective specialities and to improve the quality of supply is a high such as plastic surgery and dentistry are priority. For example through its Barrio popular among Venezuelans. Plastic surgeons Adentro programme, the government aims to and dentists are often internationally qualified provide primary healthcare for low income and use state-of-the-art equipment and groups. Since its introduction ten years ago, techniques. There is strong demand for Barrio Adentro has helped more than 60 million specialist services and Venezuela is a patients across Venezuela. More recently, the recognised destination for such procedures government announced plans to invest around from other South American nations. US$ 900 million in more than 1000 public healthcare projects including modernizing and Dental products & services refurbishing existing medical facilities in 15% of the Venezuelan population regularly Venezuela as well as the construction of 16 uses dental care services and it is estimated brand new hospitals. that there are more than 20,000 certified dentists in Venezuela operating in both the Private healthcare in Venezuela has grown to public and private sector. The private sector meet the shortfall in public supply. According dominates the dental care industry with most to the WHO, private healthcare accounts for private dental care specialists operating from 55% of total expenditure on health. Private small to medium-sized premises, usually well- clinics and hospitals provide high quality care equipped and independent from larger general and equipment comparable with western clinics and hospitals. Cosmetic and aesthetic facilities. The majority of private healthcare is dentistry are important in Venezuela. Dentists, funded through medical insurance cover, often particularly in the private sector, often provided to employees of both private and specialize in areas such as endodontics, public companies as an employee benefit. periodontics, maxillofacial surgery, aesthetics, Most private clinics and hospitals in the country orthodontics, dental pediatrics etc. and review are affiliated to the Venezuelan Association of and update their skills and equipment regularly Clinics and Hospitals (AVCH). AVCH has 51 to meet demanding local quality expectations members across Venezuela. and keep up with the introduction of new technologies. Business opportunities exist in this area for UK suppliers and manufacturers of Opportunities dental equipment, products, services and specialist training. Medical equipment market The Venezuelan market for medical equipment Though it is the private sector that drives and supplies was worth over US$ 1 billion in standards, public sector awareness of the 2011. Limited local production means that importance of improved dental care access is 90 % of medical equipment and supplies is growing. The “Smile Project” (Mision Sonrisa) imported. Key imports include orthopaedic is a dental care scheme funded by the diagnostic imaging, ECG, tomography and Venezuelan Ministry of Health which operates nuclear medicine, ultrasonic, haemodialysis, EEG, disposables and consumables (syringes, UK Trade & Investment Sector briefing: Healthcare opportunities in Venezuela in 12 Venezuelan states and provides website. Find out more on UKTI’s business treatment to the less well-off. Treatment is opportunities service on the UKTI website offered free of charge and includes diagnostics, surgery, endodontics, prosthesis, etc. Business opportunities exist particularly in areas such as the supply of portable units that can be deployed in distant or difficult to access areas. Public health schemes cover only basic procedures, therefore more complex and non- essential services and treatments are charged to patients at relatively high prices. There is strong demand for dental equipment and materials, such as dental units, aesthetic dentistry implant products, laser dentistry, endodontic materials, prostheses and micro- prostheses, orthodontics, x-ray equipment and supplies, filling materials and specialist tools. Advanced, high technology equipment and high quality goods are increasingly sought by private sector practices keen to deploy state of the art equipment and technology. Imports dominate the Venezuelan market for dental equipment and supplies with the main suppliers being US, German, Japanese and Brazilian manufacturers. Local production is limited to disposables as imported components or raw materials make it expensive for local producers to manufacture items on a commercially viable scale. Regulatory Agency Regulatory matters are handled by the Office for the Regulation & Control of Supplies, Equipment and Medical Professionals – an agency of the Ministry of Health whose main responsibility is to register and regulate the marketing of medical and dental devices and supplies in Venezuela. All medical equipment, regardless of origin must be registered with the aforementioned office to check its compliance with Venezuelan regulations prior to being given clearance for use in market. If you have any questions on the opportunities above, contact the UKTI contacts named in this report. Business opportunities aimed specifically at UK companies are added daily to UKTI’s website. These leads are sourced by our staff overseas in British Embassies, High Commissions and Consulates, across all sectors and in over 100 markets. You can be alerted to business opportunities on a regular basis by registering on the UKTI UK Trade & Investment Sector briefing: Healthcare opportunities in Venezuela Major events and activities UKTI contacts Asociación Venezolana de Distribuidores Luis Ernesto Sánchez (Sector Specialist) de Equipos Médicos, Odontológicos de Trade & Investment Officer Labpratorios y Afines (AVEDEM) British Embassy Caracas Edif. Centro Seguros La Paz, Tel: +58 (212) 2638411 Ext. 4314 Piso 4, Ofic. Norte 41-A, Email: La California Norte. Caracas 1070 Venezuela Ian Mason Phone: +58 (212) 2373986 / 2374873 / First Secretary 2370517 British Embassy Caracas Fax: +58 (212) 2372923 Tel: +58 (212) 2638411 Ext 4241 Email: Email: Web: Asociacion Venezolana de Clínicas y Hospitales Urbanización Santa Sofía, Torre Alfa, Piso 3, Ofc. 3-D. Caracas - Venezuela. Phone: +58 (212) 986 0148/ 1475 Email: ; Web: Asociación Venezolana de Importadores y Distribuidores de Equipos de Laboratorio y Afines Av. República Dominicana Edificio Alpha, PH, Local 6-2 (KO-BE) Boleíta Sur - Caracas Venezuela Phone:+58 (212) 5174144 Fax :+58(0)212-2387949 Email: Email: Web: Find full details of all events in this country and sector on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis UKTI’s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events UK Trade & Investment Sector briefing: Healthcare opportunities in Venezuela Next steps - How UKTI can help • Arranging appointments • Organise seminars or other events for British companies wishing to develop their you to meet contacts and promote your business in the Venezuelan market are advised company in the Venezuelan market to undertake as much market research and planning as possible in the UK. UKTI’s team in This work is available via our Overseas Market Venezuela, with its wide local knowledge and Introduction Service (OMIS) a chargeable experience, can provide a range of services to service which assists British-based companies British-based companies wishing to grow their wishing to enter or expand their business in business in global markets. overseas markets. This can include: To find out more about commissioning this • Provision of market information work, or accessing other UKTI services and • Validated lists of agents/distributors specialist advice, please visit the UKTI website • Key market players or potential to find contact details for your local UKTI office customers in the Chinese market • Establishment of interest of such contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. ©Crown Copyright 2011 You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: This publication is also available from our website at or for more information please telephone +44 (0)20 7215 8000. UK Trade & Investment Sector briefing: Healthcare opportunities in Venezuela
Posted: 26 May 2012